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Tuesday, September 27, 2022

Oil Now $77 As Daily Petrol Subsidy Rises To N6.07bn

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The expected retail price of N263.90 per litre and the current pump price of N162 per litre indicate a subsidy of N101.09 per litre as of June 25, compared to N92.98 per litre on June 16.

With daily petrol consumption put at about 60 million litres by the NNPC and a subsidy of N101.09 per litre, daily subsidy increased to N6.07bn on June 25 from N5.58bn on June 16.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $718 per metric tonne (N219.66 per litre) on June 25 from $691.25 per MT (N211.47 per litre) on June 16.

The PPPRA, in its March template, used an average cost of $561.96 per MT (N169.22 per litre) and an average freight rate of $21.63 per MT (N6.62 per litre).

Other cost elements that make up the landing cost include lightering expenses (N4.81), Nigerian Ports Authority charge (N2.49), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N2.17).

The pump price is the sum of the landing cost, wholesaler margin (N4.03), admin charge (N1.23), transporters allowance (N3.89), bridging fund (N7.51), marine transport average (N0.15), and retailer margin (N6.19).

source; economic confidential

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