Between January 1 and February 12 this year, an interval of about six weeks, the Federal Government made over N18.3bn as savings from the removal of subsidy on Premium Motor Spirit and House Hold Kerosene.
The government officially stopped subsidy on PMS, popularly known as petrol, on January 1, 2016, while on January 23 this year, it also ended the subsidy regime on kerosene, according to the pricing templates for both commodities obtained from the Petroleum Products Pricing Regulatory Agency. The PPPRA is the agency of the Federal Government that fixes and regulates the prices of the white products, PMS and HHK, as well as other refined petroleum products across the country. The PPPRA occasionally updates the templates for both commodities to reflect fluctuations in the global prices of crude oil.It unveiled its revised PMS template on January 1, 2016 while that of HHK was posted on January 23, a development that showed that the Federal Government now makes extra cash daily from every litre of petrol and kerosene sold across the country.
An analysis of the various updated templates so far released by the agency after they were revised showed that the Federal Government had raked in over N18.3bn in six weeks. For instance, in the recent template for PMS, which was posted on the PPPRA website on February 12, the government made a cash recovery of N15.23 on every litre of petrol sold in the country. On petrol alone, about six templates had been released by the regulatory agency, beginning with the one posted on January 1 this year, which confirmed the stoppage of petrol subsidy and showed an over recovery of N1.4 per litre of PMS.
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