Petrol Subsidy Hits N905.27 Billion

 Petrol Subsidy Hits N905.27 Billion

The Nigerian National Petroleum Corporation (NNPC) spent a total of 905.27 billion Naira on petrol subsidy in eight months amid rising global oil prices.

This is contained in the latest data obtained from the Corporation.

With the international oil benchmark, Brent crude, nearing $80 per barrel on Monday (2.07 per cent at $79.71 per barrel as of 7:00pm Nigerian time), the landing cost of imported petrol and subsidy are expected to increase.

The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to 125 Naira per litre from 145 Naira per litre following the sharp drop in crude oil prices.

However, subsidy resurfaced in January this year as the government left the pump price of petrol unchanged at 162 Naira to 165 Naira per litre despite the increase in global oil prices.

Data from the Corporation showed that it incurred 25.37 billion Naira subsidy cost in January, 60.40 billion Naira in February, 111.97 billion Naira in March, 126.30 billion Naira in April and 114.34 billion Naira in May.

The subsidy cost rose from 143.29 billion Naira in June to 175.32 billion Naira in July but fell to 149.28 billion Naira in August, according to the NNPC.

MosinmiladeOluwa Soremekun

Related post

Leave a Reply

%d bloggers like this: