The Federal Government could pay as much as N102.9 billion in subsidy in the month of March, according to the latest details from both the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Regulatory Agency (PPPRA).
On Thursday, the PPPRA, a Federal Government agency, sets the expected lower and upper prices for petrol at retail outlets in the month of March 2021 between N209.61/litre and N212.61/litre. While the expected ex-deport and expected landing costs were pegged at N206.42/litre and N189.61/litre, respectively.
However, the NNPC approved ex-depot price for March was N148.6/litre, saying it had no plan to increase petrol price this month.
“There is no increase in petrol price and our position is that the ex-depot price for petrol in March remains the same. So, no need to panic because there is no hike in price,” NNPC’s spokesperson, Kennie Obateru, stated.
According to the NNPC, Nigeria daily consumption stood at about 57.44 million litres. Therefore, selling at N148.6 per litre while the ex-depot price published by PPPRA for the month was N206.42/litre, it means the Federal Government is shouldering a difference of N57.82 per litre.
This number multiply by 57.44 million litres of petrol consumed per day and the 31 days in the month of March, implies that the government through the corporation will be spending around N102.96 billion on subsidy in the month of March.
