The Federal Government now subsidises Premium Motor Spirit, PMS, also known as petrol, at the rate of N9.09 per litre.
This is according to the latest pricing template released by the Petroleum Products Pricing Regulatory Agency, PPPRA.
Thus, if government allow market forces determine the price, Nigerians would be made to pay a minimum of N95.09 to buy a litre of the petrol from Nigerian National Petroleum Corporation’s (NNPC) retail stations, and N95.74 per litre from other marketers.
The PPPRA, in its template, released yesterday, put the cost plus freight of imported petrol at N74.83 per litre, with other cost elements, hiking the landing cost of the product for marketers to N81.44 per litre.
With a distribution margins put at N14.30 per litre, the Expected Open Market price of the product rose to N95.74 per litre.
However, the ex-depot price, which is the price marketers purchase the products from depots is N76.50 per litre, while the retail price was fixed at N86.50 per litre.