Without subsidy, petrol will cost N462 per litre: NNPC

Without federal government’s subsidy on premium motor spirit (PMS), the pump price of the fuel who have been costing consumers N462 per litre, the Nigerian National Petroleum Company Limited (NNPCL) has said.

In a statement issued on Sunday, Garba Deen Muhammad, the spokesman of the company, stated that President Muhammadu Buhari’s administration is currently paying N297 per litre for the 68 million litres of fuel consumed daily.

“NNPC limited also notes the average Q2, 2022 international market determined landing cost was US$1,283/MT and the approved marketing and distribution cost of A46/litre. The combination of these cost elements translates to retail pump price of N462/litre and an average subsidy of N297/litre and an annual estimate of N6.5 trillion,” the statement partly read.

This revelation comes in the wake of attempts by the President Buhari regime to remove petroleum subsidy.

Last November, Mr Buhari’s regime said it would remove fuel subsidy by June this year and provide “deserving” Nigerians with a N5,000 monthly transport allowance, which the NLC described as “comical.”

Last March, however, the regime suspended the subsidy removal due to pushback from citizens and to avoid consequences in the 2023 general elections. 

The Minister of Finance, Zainab Ahmed, in August disclosed that President Muhammadu Buhari has set June 2023 as the date for the removal of fuel subsidy.

Mr Buhari’s new deadline for removing fuel subsidy will be a month after he hands over to his successor in May 2023, leaving the new leader to deal with any backlash and commotion that may follow the decision.