Fuel subsidy hits N1.593tn, Refinery Rehabilitation Gulps N54.66bn

 Fuel subsidy hits N1.593tn, Refinery Rehabilitation Gulps N54.66bn

Latest data on the amount spent in subsidising Premium Motor Spirit, popularly called petrol, seen in Abuja on Monday showed that the government subsidised the commodity with N1.593tn between January and June 2022.

It was also gathered that the Nigerian National Petroleum Company Limited pumped N54.66bn into refinery rehabilitation during the six months period.

Figures obtained from the NNPCL’s presentation to the Federation Accounts Allocation Committee meeting for July 2022 showed that subsidies on petrol were implemented in June. The company transited from a public oil firm to a commercial entity last month.

It also made it clear in July that subsidy on petrol was now a burden of the Federal Government and not its own responsibility.

An analysis of the July presentation to FAAC showed that fuel subsidy or under-recovery/value shortfall, as described by NNPCL, rose to N1.593tn in the first half of 2022.

Figures from the report indicated that the amounts spent as subsidy on the commodity in January, February and March were N210.38bn, N219.78bn and N245.77bn, respectively.

A total of N271.59bn, N327.1bn and N319.18bn were spent as subsidy in April, May and June respectively.

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