Despite Receiving N6tn in Subsidies, Fuel Prices have Increased by 81%.

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According to National Bureau of Statistics figures analyzed by our correspondent, the cost of Premium Motor Spirit, also known as gasoline, has increased by 81% over the last three years. This occurred after research revealed that the Federal Government had subsidized petroleum goods to the tune of around N5.83 trillion.

According to NBS data, the cost of gasoline increased from N145.41/liter to N263.76/liter between February 2020 and February 2023. Consumers paid an average retail price of N263.76 for Premium Motor Spirit in February 2023, which represents a 54.76% increase over the price recorded in February 2022. (N170.42).

The average retail price grew by 2.58 percent from the previous month (January 2023), when compared to the average price  from N257.12.At the onset of 2020, the average price paid by consumers for petrol increased by 0.08 per cent year-on-year and month-on-month by 0.03 per cent to N145.41 in February 2020 from N145.37 in January 2020, according to the NBS.At the time, the Federal Government had paid about N134bn as fuel subsidy payment.

States with the lowest average price of premium motor spirit were Abuja (N143.67), Enugu (N144.50) and Lagos (N144.73) in 2020. In the last three years, fuel subsidy has gone from N134bn in 2020 to N1.43tn in 2021, N4.39tn in 2022 and a projected N3.63tn by June of 2023.


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