The sharp rise in global oil prices to record highs has pushed the subsidy cost being incurred by the Federal Government to N8.28bn daily, an analysis of data collated by our correspondent has shown. The PUNCH had reported on September 28 that the Nigerian National Petroleum Corporation spent a total of N905.27bn on petrol subsidy from January to August, citing data from the corporation. The NNPC, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced. It was based on an average oil price of $62.22 per barrel, and the landing cost of petrol was put at N189.61 per litre. With daily petrol consumption put at about 60 million litres by the NNPC and a subsidy of N N137.94 per litre, daily subsidy increased to N8.28bn last Friday from N6.62bn on July 30.

Source: Punch October 12, 2021 01:07 UTC