The Fuel Subsidy Calculation:FG says it subsidizes N34.51 p/Litre for Nigerians

For the whole of 2013, 2014 and the first two months this year, a total amount of N1.43tn was recorded as the total petrol subsidy claims from oil marketers.

Out of this amount, the Federal Government is said to be owing marketers a total of N264bn. N164bn of this amount is the actual subsidy covering part of 2014 and the first two months of 2015.

The remaining N100bn, according to the Major Oil Marketers Association of Nigeria, comprised accumulated interest on loans obtained by marketers from banks for petrol imports, and foreign exchange differentials occasioned by the devaluated naira.

Agitations by marketers last month had made the Federal Government agree to pay marketers a total of N264bn as subsidy arrears for the periods under review in March (this month).

Figures from the Petroleum Products Pricing Regulatory Agency show that about N832.06bn was paid as subsidy claim by the Federal Government to oil marketers in 2013 alone.

For July and December 2014, the government paid N45bn and N166bn respectively.

The unpaid subsidy arrears coupled with rising interests and foreign exchange differential had made marketers suspend importation of petrol in February. This move resulted in the scarcity of petrol all over the country, and the scarcity, according to market sources, will persist till next week.

However, the Federal Government on Tuesday expressed concern about the long queues of motorists at petrol filling stations in Lagos, Abuja and other parts of the country, and announced that a Sovereign Debt Note of N100bn had been issued by the Debt Management Office to settle part of the subsidy arrears owed oil marketers.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, confirmed the issuance of the SDN through a statement issued by her Special Adviser on Communications, Mr. Paul Nwabuikwu.
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As of Friday last week, the Federal Government was said to be paying N1.38bn as subsidy on petrol within the country on a daily basis.

It is said to be paying a subsidy of N34.51 per litre of petrol, according to data from the Petroleum Products Pricing Regulatory Agency’s website on Friday.

http://www.punchng.com/business/energy/petrol-subsidy-rises-to-n1-43tn-in-26-months/