The landing cost of the Premium Motor Spirit (PMS) aka petrol is now N264.65 per litre, according to media report.
Quoting a source in the Petroleum Products Pricing Regulatory Agency (PPPRA), the report said there is a difference between the agency’s cost and that of the Nigerian National Petroleum Corporation (NNPC).
A subsidiary of the corporation, the Pipelines and Products Marketing Company is the sole importer of the product.
The NNPC, the report continued, claimed it has a higher landing cost than that of the PPPRA.
Although the agency had last year announced the deregulation of the product, the Federal government had a recourse to subsidising it when the landing cost became unbearable for the end users.
The NNPC that termed it under recovery regime has left the pump price at a band between N162 and N165 per litre.
From the PPPRA landing cost of N264.65 per litre there exists subsidy or an under recovery of N102.65 per litre, which could not be verified immediately.
“I cannot give you that figure because there is a difference between NNPC subsidy figure and ours (PPPRA). NNPC is the only importer and its own is always higher,” the source was quoted saying.
The agency had on Monday issued a statement that the average daily supply of petrol in August 2021 is 55.99 million litres.
In other words, Nigeria is consuming about N14,555,750,000 petrol while the Federal government is spending about N5,747,373,500 on subsidy daily.