Indications have emerged that theFederal Government has saved close to N9.4 billion in January alone, following the discontinuation of the payment of subsidy to oil marketers for the importation of petrol and kerosene.
Data compiled from the Petroleum Products Pricing Regulatory Agency (PPPRA) website showed that the country was saved an average of N5.77 and N6.66 per day on a litre of petrol and kerosene respectively in January.
The PPPRA which is the government agency that regulates the prices of petroleum products in the country had on January 1 revised its pricing template thereby erasing the usual subsidy component to negative subsidy on the products.
The difference between the Retail Price and the EOMP was what the federal government paid as subsidy to oil marketers.
However, the new EOMP is lower than the Retail Price meaning a negative subsidy and that Nigerians are paying extra for the commodities whenever they buy them at both NNPC and non-NNPC run filling stations.
The negative subsidy (the extra amount which would be recovered from marketers), according to explanations by Group General Manager, Corporate Planning and Strategy NNPC, Mr. Bello Rabiu, would be remitted to the Petroleum Support Fund (PSF) in line with the PPPRA guidelines.
