The Nigerian National Petroleum Corporation incurred N756.99 billion petrol subsidy cost from January to July this year.
The latest data obtained from the corporation, showed that the subsidy, which the NNPC prefers to core ‘value shortfall’ or ‘under-recovery’, resurfaced in January this year as the government left the pump price of petrol unchanged at N162-N165 per litre despite the increase in global oil prices.
The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 following the sharp drop in crude oil prices.
However, on August 9, the landing cost of petrol imported into the country increased to a new high of N249.42 per litre on July 30 from N240.17 per litre as of June 25.
The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced.
Data from the corporation showed that it incurred N25.37 billion subsidy in January, N60.40 billion in February, N111.97 billion in March, and N126.30 billion in April and N114.34 billion in May.
The subsidy cost rose from N143.29 billion in June to N175.32 billion in July, according to the NNPC.
