NNPC Speaks on Fuel Subsidy as Filling Stations Slash Petrol Pump Price
- The NNPC has assured Nigerians that all costs from the products imported into the country are recovered
- It continues to deny that the new administration is sponsoring any fuel subsidy, as insinuated by many
- This occurred after the pump price of Premium Motor Spirit dropped from N660 to N640 per litre at some filling stations
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company Limited (NNPCL) has said it recovered total costs from the products it imported into the country.
Source: Getty Images
The company also dismissed any insinuation about the return of the petrol subsidy.
Chief corporate communications officer of the NNPC Ltd, Olufemi Soneye, in a Leadership report, said that since the ousting of petrol subsidy by President Bola Ahmed Tinubu, the subsidy regime has ceased to exist.
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Soneye stated:
“It is important to emphasise that the subsidy is no longer in place. Contrary to allegations, petrol subsidy has not been reinstated.”
Is FG still paying fuel subsidy?
This comes after Gabriel Ogbechie, the CEO of Rainoil Limited, purportedly stated that the federal government has reinstated the contentious gasoline subsidy due to the naira's depreciation in the foreign exchange market.
This claim was attributed to Ogbechie's Tuesday remarks at the Stanbic IBTC Energy and Infrastructure Breakfast Session in Lagos.
He emphasised that the government's gasoline subsidy ranges from N400 to N500 per litre, with Nigeria using 40 million litres of petrol per day, and the foreign currency rate is N1,300. This adds up to a monthly total of almost N600 billion.
Ogbechie said:
“So I can tell you for free that there is at least N400 or N500 litres subsidy on petrol today. If you look at our daily consumption, say 40 million litres, and we’re spending N500 per litre, that is about N20 billion every day, N600 billion every month and N7.2 trillion yearly, depending on how we look at it. So, the subsidy is definitely back on petrol,”
Meanwhile, Legit.ng earlier reported that Premium Motor Spirit, also known as gasoline, used to sell for N640 and N660 per litre, but as the naira strengthened against the US dollar a few weeks ago, it now only costs N620 per litre in various parts of Lagos state.
Furthermore, a visit by Legit.ng to a few stations owned by Nigerian National Petroleum Company Limited revealed that the product is offered to drivers for about N580 per litre.
The changes observed in certain filling stations in Lagos are a harbinger of good news despite the high cost of living, even if NNPCL has not formally announced new gasoline prices in the nation.
Dangote Refinery rolls out diesel
Legit.ng reported that the Dangote Refinery began rolling out diesel to marketers at its Lekki, Lagos facility on Monday, April 15, 2024.
The refinery said it had commenced the distribution of diesel to registered marketers via land and sea, marking a significant development for Nigeria's fuel supply and the energy sector.
According to reports, IPMAN is championing the pricing challenge. They pointed out that imported diesel currently costs N1,250 per litre in Nigeria due to the resurgence of the naira.
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Source: Legit.ng
