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Subsidy on petrol now N1.23 per litre

By on February 3, 2015

The Federal Government is still subsidising petrol by N1.23 per litre, latest statistics from the Petroleum Products Pricing Regulatory Agency have revealed.

The pricing template of the PPPRA, which was last updated on January 29, 2015, stated that the Expected Open Market Price of premium Motor Spirit, otherwise called petrol, was N88.23, while the official retail price was N87 per litre.

The latest pricing template by the agency indicates a drop of N2.41 in the subsidy sum, down from the N3.64 as of January 23, 2015.

The PPPRA stated that the landing cost of petrol was N72.74 per litre. The landing cost consists of the actual cost, N62.79; traders’ margin, N1.28; lightering expenses, N3.88; the Nigerian Ports Authority cost, N0.67; financing, N0.32; jetty depot throughput charge, N0.80; and storage charge of N3.00.

On the distribution margins, it gave the retailers’ cost element as N4.6; transporters, N2.99; dealers, N1.75; bridging funds, N1.75; marine transport average cost, N0.15; while admin charge was put at N0.15. The subtotal of the margins was put N15.49 per litre.

 

[Punch]