Abuja and Lagos — Amid the lingering fuel crisis in the country, there were indications yesterday from the Petroleum Products Pricing Regulatory Agency (PPPRA) that the product may be sold for N88 per litre at the Nigerian National Petroleum Corporation (NNPC) stations and N88.50 in other stations starting from today.
Until this new template, the NNPC’s official price for a litre of fuel was N86 while for others it was N86.50. The new price mechanism that is expected to take effect today is a requirement of price modulation system that is reviewed every quarter.
The Guardian learnt that the proposal for the price template for the second quarter of the year (April to June) was tabled before the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu by the PPPRA boss, Mrs. Sotonye Iyoyo early this week.
It could not be ascertained yesterday whether the substantive Minister of Petroleum Resources, President Muhammadu Buhari, who is attending a conference in Washington DC in the United States, approved the template before leaving the country.
According to an investigation by The Guardian, every aspect of the template was retained except the equalisation fund, which has additional N2 per litre from the previous N4, making it N6.
The breakdown indicates that government is expected to get N400 million daily as the country still operates on over-recovery basis, which means that Nigerians are paying extra N10 on every litre of petrol they buy at the filling stations.
With an estimated 40 million litres of petrol consumed per day, the Federal Government will mobilise about N36 billion into the dedicated account that is opened in the Central Bank of Nigeria (CBN) for over-recovery funds in the second quarter of 2016.