The price of Household Kerosene has during the weekend taken a leap from N50 per litre to N83 per litre thereby putting an official end to the Federal Government Subsidy on the petroleum product.
In the product pricing template released by The Petroleum Products Pricing Regulatory Agency, PPPRA, the regulatory board stated that the N83 per litre price applies only to the Nigerian National Petroleum Corporation (NNPC), which translates that other merchants of the product including Petrol stations can sell at a higher than stipulated price.
The pricing template released by the PPPRA showed that the Federal Government is making a N10.72 gain for every litre as it puts the Expected Open Market Price (also known as Landing Cost) plus Total Margins at N72.28 per litre.
In a breakdown of the price, the PPPRA template put the Landing cost of Kerosene at N57.98 per litre, total margin due to middlemen was put at N14.30 which was further broken down to show the following margins: N5 per litre retailers margin, N3.05 per litre for Transporters, N1.95 per litre for Dealers, Bridging fund of N5.85 per litre, Marine Transport Average was put at N0.15 and Admin Charges of N0.15 per litre.