With the total cost of a litre of Premium Motor Spirit, otherwise known as petrol, put at N101.79 as of February 9, the subsidy on the product has increased to N14.79 per litre, according to data obtained from the Petroleum Products Pricing Regulatory Agency on Tuesday.
The Federal Government had on Sunday, January 18, 2015, announced the reduction in the pump price of petrol to N87 from N97 per litre, attributing this to the decline in global crude oil prices.
Subsidy on PMS stood at N12.27 per litre on February 3 as the PPPRA put the Expected Open Market Price (total cost) of the product at N99.27 per litre, up from N95.47 on February 2, and N88.23 on January 29. The subsidy was N8.47 per litre on February 2.
Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state.
The product cost and freight component was put at N75.90 per litre on February 9, up from N73.46 on February 3 and N69.79 a day earlier.
The landing cost, which is the sum of the product cost, freight rate, traders’ margin, lightering expenses, Nigerian Ports Authority fees, financing cost, jetty depot throughput charge and storage charge, increased to N86.90 per litre from N83.78 on February 3 and N79.98 on February 2.
The EOMP is the sum of the landing cost and the distribution margins, which amounted to N15.49 per litre on February 9.
On the distribution margins, the retailers’ cost element stood at N4.6; transporters, N2.99; dealers, N1.75; bridging funds, N1.75; and marine transport average cost, N0.15; while admin charge was put at N0.15.