Abuja - The Federal Government’s daily spending on petrol subsidy may have increased to N2.06bn as the pricing template for the product by the Petroleum Products Pricing Regulatory Agency on Sunday put the subsidy at N51.61 per litre, Punch reports.
Based on daily petrol consumption of 40 million litres, the total subsidy cost on the product as of June 11 would amount to N2.06bn at N51.61 per litre, up from N48.15 on June 2.
Also read: NLC vows to resist removal of fuel subsidy
Subsidy refers to the money paid, usually by the government, to keep prices below what they will otherwise be in a free market system.
Nigeria, which relies on importation for most of its fuel needs as the country’s refineries are in a poor state, has seen a drop in importation of refined petroleum products in recent months, leading to acute scarcity of the products across the country.
Read more at Punch
- News 24