Despite the recent reduction in the pump price of petrol from N97 to N87 per litre, the Federal Government has claimed it still pays N2.84 as subsidy on every litre of the product consumed.
According to the latest petrol pricing template published on the website of the Petroleum Products Pricing Regulatory Agency, the Expected Open Market Price of Premium Motor Spirit, otherwise called petrol, is N89.84 per litre, while the regulated price is N87 per litre.
The PPPRA said the approved prices of petroleum products were from January 16, 2015.
According to the agency, the landing cost of petrol is now N74.35 per litre, while the ex-depot price is N77.66 per litre.
It was reported that, with the price of the global benchmark Brent crude closing on January 5, at $57.94, the Federal Government was paying 90 kobo as subsidy for a litre of petrol because the PPPRA pricing template had put the EOMP of petrol at N97.90.
The Federal Government on Sunday night announced the reduction in the pump price of petrol by N10 per litre, attributing this to the decline in global crude oil prices.
The Minister of Petroleum Resources, Diezani Alison-Madueke, while explaining the reason for the reduction in fuel price, said, “There has been a lot of volatility in the oil market in the past few months and due to this, the importation prices of our petroleum products have been impacted.
“Therefore, with the approval and directive of Mr. President, and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility, as the Minister of Petroleum Resources, to hereby announce a reduction in the pump price of Petroleum Motor Spirit, (otherwise known as petrol), from the current N97 per litre to N87 per litre, effective from midnight of Sunday, January 18, 2015”.