Federal Government Officially Removes Kerosene Subsidy
The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced the increase in the price of Kerosene from N50 to N83 per liter.
The agency issued a statement on Sunday to say the N83 per liter price applied only to the Nigerian National Petroleum Corporation (NNPC) outlets. The template also showed that at N83, the federal government will be making a gain of N10.72 on every liter.
It further puts the expected open market price, which is the landing cost plus total margins, at N72.28 per liter. The expected open market price is the prevailing open market rate for the product in Nigeria, after taking certain costs into consideration.
Giving a breakdown of the price, the PPPRA template put the landing cost of the product at N57.98 per liter, while the total margin due middlemen was put at N14.30. The retailers’ margin was put at N5 per litre, transporters’ N3.05 per litre and dealers’ N1.95 per litre.
It further put the bridging fund at N5.85 per litre, marine transport average at N0.15 and administrative charges at N0.15. It stated that the official ex-depot price, which depot owners would sell to marketers, is N68.70 per litre. The official ex-depot price for collection is N73 per litre, while ex-coastal price is N68.02 per litre.