The further rise in global crude oil prices has pushed the daily subsidy on Premium Motor Spirit, also known as petrol, to N6.07bn. Petrol subsidy, which was removed in March 2020, re-emerged earlier this year as the government has left the pump price of the product unchanged since December despite the increase in global oil prices. The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced. The pump price of petrol has remained at between N162 and N165 per litre at many filling stations in Lagos since December. With daily petrol consumption put at about 60 million litres by the NNPC and a subsidy of N101.09 per litre, daily subsidy increased to N6.07bn on June 25 from N5.58bn on June 16.

Source: Punch July 05, 2021 23:15 UTC