The Nigerian government has announced the reintroduction of payment of subsidy on petrol while also revealing that petrol scarcity would end in a few days.
The latest pricing templates of the Petroleum Products Pricing Regulatory Agency released on Saturday, showed that government was paying N5.84 on subsidy – which was scrapped in January after the review of the pricing template of the product by the government.
The PPPRA also announced that the current official pump prices of petrol would remain at N86 per litre when purchased at filling stations run by the Nigerian National Petroleum Corporation and N86.5 per litre when sold at outlets operated by other oil marketers.
The agency further revealed that the Expected Open Market Price of petrol for non-NNPC stations as at April 2, 2016, was N92.34 per litre, against an official pump price of N86.5 per litre, leaving an under-recovery or subsidy of N5.84 per litre.
Meanwhile, the template for NNPC-run petrol stations showed that the government was paying N5.80 per litre as subsidy, while the EOMP for outlets in this category was N91.80 per litre.
EOMP is the actual cost of petrol without subsidy and comprises of the landing cost of the product as well as its subtotal margins like transporters charge, admin fee, dealers cost, bridging fund, etc.
Acting Executive Secretary, PPPRA, Sotonye Iyoyo, said, “The agency is retaining the retail prices of N86.00 for the NNPC, and N86.50 for the other marketing companies. The pump price of household kerosene also remains unchanged from what it was in the last quarter.”
“Therefore, marketers are advised to ensure that there is no price distortion in their respective retail outlets. PPPRA, however, shall continue to monitor the global oil market performances, and come up, at appropriate time, with reasonable changes consistent with the newly-adopted price modulation principles.”
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