The subsidy on petroleum products on Wednesday recorded a sharp increase to N12.27 per litre. It was N8.47 on Monday. Punch reports:
Subsidy on Premium Motor Spirit, otherwise known as petrol, has increased to N12.27 per litre, the highest since the Federal Government reduced the pump price of the product to N87 per litre, data obtained from the Petroleum Products Pricing Regulatory Agency on Wednesday has shown.
The Federal Government had on Sunday, January 18, 2015 announced the reduction in the pump price of petrol by N10 from N97, attributing this to the decline in global crude oil prices.
The Expected Open Market Price of PMS, according to the PPPRA pricing template, 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.