The Nigerian government, on Monday, announced that it will pay fuel subsidy to oil marketers based on the profits made from the first quarter of 2016.
This disclosure was contained in a template released by the Petroleum Product Pricing Regulatory Agency in Abuja.
The PPPRA stated that the federal government made N10 billion between the months of January and March due to the selling of the petrol product above the open market price.
The new template showed that the open market price of Premium Motor Spirit (PMS) rose to N99.38 per litre for independent and major oil marketers and N98.62 per litre for NNPC retail outlets.
It further disclosed that open market price of fuel was the price of the product without subsidy and in relation of the exchange rate of N197 to 1 dollar.
At the present price of N86 per liter at NNPC retail outlets, the federal government was paying subsidy of N12.62 per liter and N12.88 per liter as subsidy for independent oil marketers, who are selling fuel at N86.50
Further breakdown of the PPPRA template showed that the Landing Cost of PMS imported into the country was N84.32 for NNPC retail outlets and N85.08 per litre for ndependent and major oil marketers.
Combined with other miscellaneous factors, the cost of the product rose to an open market price to N98.62 and N99.38 for NNPC retail outlets and other marketers, respectively.