FG to pay N40 per litre Fuel Subsidy to keep pump price at N145
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FG to pay N40 per litre Fuel Subsidy to keep pump price at N145

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buharo - FG to pay N40 per litre Fuel Subsidy to keep pump price at N145

The Nigerian government will have to pay a subsidy of N40.70  for every litre of imported fuel in order to keep pump price at N145.

This development was made public by the NNPC GMD, Maikanti Baru at a press conference in Abuja. According to Baru, the landing cost of Petrol at the moment is N171 per litre.

“The landing cost comprising CIF (cost, insurance and freight) of petrol as of last Friday was in the neighbourhood of $620 per metric tonne, so with the official exchange rate of N305 to the dollar, the landing cost should be N171.40 per litre.



The government has consistently indicated that N145 per litre is the price and it has mandated the NNPC to keep the depot price at N133.28 per litre, so as to maintain a cap of N145 per litre.

So, there is a lot of profit in between after taking the transportation cost of N7 off; there is sufficient margin for marketers in that PPPRA template at the price cap.”

unicaffa - FG to pay N40 per litre Fuel Subsidy to keep pump price at N145
1 Comment

1 Comment

  1. Eseore

    December 27, 2017 at 4:24 pm

    We are yet to understand the logic behind the petroleum subsidy. how many times will they remove and pay subsidy and where is the government going to get the money to fund the said new subsidy since there is no provision fro subsidy in the 2017 and 2018 budget appropriation bill? I honestly think this is going to make NNPC books look taterred and call for concern.These were the issues the present administration raised in their electioneering campaign promises now everything seems to remain the same if not worse because we now pay higher price for the product which have affected the overall prices of goods and services accross every fascet of the economy and the government is still claiming to be accommodating subsidy. Does it mean that the government failed to plan for such eventuality or they don’t care?

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Updated on September 12, 2018 at 10:15 am