FG spends N1.243tn Monthly As Fuel Subsidy Hits N600/Litre – Operators

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The amount spent as subsidy by the Federal Government on every litre of Premium Motor Spirit; popularly called petrol, consumed in Nigeria is currently above N600- oil sector operators.

Also, the latest PMS evacuation data obtained from the Nigerian National Petroleum Company Limited showed that the year-to-date daily consumption of petrol in Nigeria was 66.8 million litres.
Going by the above figure from the NNPC, it, therefore, implies that the Federal Government spends about N40.1bn daily; when subsidising every litre of petrol consumed in Nigeria by at least N600. This also means that the government is spending about N1.243tn on fuel subsidy every month

Oil marketers told our correspondent that the cost of petrol (if not subsidised as done in Nigeria) was often higher than the cost of Automotive Gas Oil, popularly known as diesel.
Their position had earlier been confirmed severally by other operators in the oil sector; including NNPC’s Group Managing Director, Mele Kyari.

Based on this, it implies that the Federal Government through NNPC currently spends nothing less than N600; as subsidy on every litre of petrol consumed across the country.
The cost of petrol in Nigeria is about the cheapest in the world. And this is because of subsidy.
Zarma explained that this humungous subsidy spending by the government through NNPC was unsustainable; stressing that the crisis in the downstream oil sector was now affecting retail outlets seriously.

NNPC has been the sole importer of petrol into Nigeria for several years. The National President, Natural Oil and Gas Suppliers Association, Bennett Korie; had told our correspondent that the current cost of petrol could make one to run away if told.

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