According to the data provided by the Petroleum Products Pricing Regulatory Agency(PPPRA), on Wednesday subsidy on petrol has increased to N12.27 per litre.
On Sunday, January 18, 2015 the Federal Government had announced the reduction in the pump price of petrol by N10 from N97, explaining this by the decline in global crude oil prices.
PPPRA indicates that the Expected Open Market Price of PMS(Premium Motor Spirit or petrol) is N99.27 per litre as of February 3, up from N95.47 on February 2 and N88.23 on January 29.
This means that N12.27 is the subsidy incurred by the government on every litre of the product from that day, with the regulated price of the product being N87 per litre. The subsidy was N8.47 per litre on February 2.
The product cost and freight component was put at N73.46 per litre, up from N69.79 per litre on February 2 and N62.79 on January 29.
The landing cost, which is the sum of the product cost, freight rate, trader’s margin, lightering expenses, Nigerian Ports Authority fees, financing cost, jetty depot throughput charge, and storage charge, increased to N83.78 per litre, up from N79.98 on February 2 and N72.74 on January 29.
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