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

1 Min Read

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.”

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