The total amount of money spent by the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) on subsidising Premium Motor Spirit in December 2019, stood at N55.58 billion, data from the Petroleum Products Pricing Regulatory Agency (PPPRA) has revealed.
The PPPRA data, obtained on Thursday, shows that Expected Open Market Price (EOPM) of petrol, according to the pricing templates for PMS from 1st to 31st December 2019 stood at an average of N176.4 per litre. This suggests that the FG spent an average of N31.4 subsidy on every litre of petrol, whose regulated price is N145 per litre.
The EOMP of petrol is the price the commodity is expected to be sold to motorists should the FG stop paying subsidy on petrol.
According to the Daily Truck-Out Reports for PMS for December 2019, the volume of PMS distributed across Nigeria showed that 1.77 billion litres of PMS was supplied across the country during the month. This represents an average daily PMS supply of 57.1 million litres.
With an average of N31.4 per litre spent on 1.77 billion litres, the FG spent a total of N55.28 billion subsidising PMS in December 2019. The figure indicates that 16.3 per cent of the N306 billion allocated for fuel subsidy payment in the 2019 budget was spent in December last year.
The NNPC, being the sole importer of petrol into Nigeria, bears the cost of subsidising the commodity by subtracting the cost out of the earnings from its domestic crude oil sales before remitting the rest to the federation account.
Using some selected days in December, the PPPRA data revealed that EOPMs of PMS were N166.44 per litre, N165.98 per litre, N170.36 per litre and N171.12 per litre for the days between 2nd to 6th of December 2019, translating to subsidy of N21.44 per litre, N20.98 per litre, N25.36 per litre and N26.12 per litre in that order.
The EOMPs for 9th and 12th December 2019 stood at N172.73 per litre and N172.92 per litre respectively, translating to subsidy of N27.73 per litre and N27.92 per litre in that order. From 16th to 20th December 2019, the EOMPs stood at N177.33, N77.32, N174.81, N177.92 and N180.22 per litre respectively, indicating subsidy of N32.33 per litre, N32.32 per litre, N29.81 per litre, N32.92 and N35.22 per litre in that order.
The FG paid N35.78 per litre, N37.53 per litre and N37.53 per litre as subsidy for 23rd, 24th and 27th December 2019 respectively while the EOMPs for those dates stood at N180.78 per litre, N182.53 per litre and N184.64 per litre in that order.
For 30th and 31st December 2019, the FG spent N37.58 and N36.07 per litre respectively as subsidy while the EOMPs for those dates stood at N182.58 per litre N181.07 per litre in that order.