Subsidy On Petrol, Kerosene Hits N4.5bn Daily

There are indications that the Federal Government is now spending about N4.5 billion to subsidize premium motor spirit (PMS), otherwise called petrol and House Hold Kerosene (HHK) otherwise called kerosene.

According to the data posted on the website of Petroleum Products Pricing Regulatory Authority (PPPRA) on Friday, subsidy payment on petroleum had risen from N45.28 per litre to N54.21 per litre while subsidy on kerosene is now N70.96 per litre.

The Nigerian National Petroleum Corporation (NNPC) had put average daily consumption of petrol at 40 million litres while that of kerosene is said to be about 33 million litres per day.

Multiplying the amount of fuel consumed across the country on a daily basis with the current amount spent on subsidizing the products, it means that the government spends about N2.17 billion on petrol subsidy and N2.34 billion on kerosene subsidy daily.

With the current figure of N4.5 billion daily subsidy payment, it means the country will spend about N1.6 trillion on subsidizing petrol and kerosene in 2015 while only N100 billion was provided for total subsidy in the 2015 budget.