FG fights to avert fuel scarcity by spending N1.5bn for subsidy daily
The Federal Government of Nigeria has resolved to keep the pump price of premium motor spirit, commonly known as fuel at the barest minimum in this festive period by going out of its way to ensure that there’s no shortage in supply.
Judging by previous experiences, the price of petrol would have skyrocketed by now, but the FG has said that it will not spare any expense in ensuring that there’s availability of fuel. This resolution is costing the government an average of N1.5 billion per day.
As at this time last year, petrol was already being sold at N300 as fuel scarcity held sway across all parts of the country. But the Managing Director of NNPC, Maikanti Baru has disclosed that the ugly trend was averted this year due to the fact that NNPC took the role of becoming the sole importer of PMS. He also revealed that NNPC imported 60 million litres of petrol daily and lifted 50 million litres all through the year.
The oil marketers had stopped the importation of fuel over a year ago after NNPC scrapped the subsidy payment scheme. NNPC had said that this move was to curb the excesses of oil marketers who deliberately hoard fuel in order to increase the pump price.
Although NNPC insists that it is not paying subsidy for petrol, it continues to pay about N25 differential for each litre of fuel, and this adds up to N1.5 billion for the 60 million litres of petrol imported daily.
