The Nigerian government will start collecting N8 per litre as subsidy on petrol imported by NNPC and other marketers, the Petroleum Products Pricing Regulatory Agency (PPPRA) has said.
According Alhaji Farouk Ahmed, outgoing Executive Secretary of the Agency, stated this recently. He is among the heads of government agencies that were disengaged and asked to hand over to most senior directors in the office.
“The subsidy as at today came down to minus N8 per litre for PMS. What I mean by minus N8 is that government now will collect N8 for every litre imported by NNPC and marketers as against payment to marketers and NNPC,’’ he said.
He said that at the close of work on Feb. 16, the subsidy on petrol was N13.81k, adding that the landing cost was lower than the selling price by N13.81k. According to him, it translates to what is called over recovery.
Ahmed said that an Over Recovery Account had been opened with the Central Bank of Nigeria on Feb. 3 and would be managed by the Office of the Accountant General of the Federation.
He said currently, about N2.6 billion had been lodged into the account with the December importation by NNPC and the marketers.
“This is just the beginning because some of products just arrived in December; that’s why the subsidy over recovery is low. “But for those cargo that are loaded in January for example, we want the over recovery to start manifesting; then by calculation, we will begin to know what the price will be for marketers and NNPC respectively,’’ he said.