The Federal Government is gradually succeeding in phasing out the controversial fuel subsidy regime. The Petroleum Products Pricing Regulatory Agency (PPPRA) said the Expected Open Market Price of petrol as at January 29th this year was N88.23. At the official pump price of N87 per litre, it then means that subsidy has reduced to a mere 123 kobo.
The latest pricing template by the agency is indicative of a N2.41 drop in the subsidy sum, down from the N3.64 as of January 23, 2015.
The PPPRA stated that the landing cost of petrol was N72.74 per litre. The landing cost consists of the actual cost, N62.79; traders’ margin, N1.28; lightering expenses, N3.88; the Nigerian Ports Authority cost, N0.67; financing, N0.32; jetty depot throughput charge, N0.80; and storage charge of N3.00.
On the distribution margins, it gave the retailers’ cost element as N4.6; transporters, N2.99; dealers, N1.75; bridging funds, N1.75; marine transport average cost, N0.15; while admin charge was put at N0.15. The subtotal of the margins was put N15.49 per litre.