Petrol Subsidy Rises, Hits N1.16tn In 11 Months

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The amount spent on subsidising Premium Motor Spirit, popularly called petrol, rose to N1.16tn between January and November this year, the latest data from the Nigerian National Petroleum Company Limited show.

The data also revealed that NNPC’s remittances to the Federation Accounts Allocation Committee in the 11-month period dropped by N1.78tn.

The oil firm said the under-recovery/value shortfall stood at N173.132bn, N149.283bn, N163.709bn and N131.4bn in August, September, October and November respectively.

The NNPC spends so much on petrol subsidy because for about four years running it has remained the sole importer of PMS into Nigeria. Other marketers stopped importing the commodity due to their inability to adequately access the United States dollar.

The monthly remittances showed that in January, February, March and April, the NNPC remitted N90.86bn, N64.161bn, N41.184bn and nothing respectively to FAAC.

The national oil firm remitted N38.608bn, N47.162bn, N67.28bn, N80.03bn, N67.533bn, N14.85bn and N10.536bn to FAAC in May, June, July, August, September and November October respectively.

However, operators in the downstream oil sector and as economic experts had said that while it was okay to remove petrol subsidy, the government must be cautious about its withdrawal.

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, had said subsidy withdrawal was nice but might increase hardship when implemented.

– Punch

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