Naira’s Appreciation Crashing Fuel Subsidy Cost

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Indications have emerged that the rising value of the naira to the United States dollar has substantially reduced the amount the Federal Government spends on subsidising fuel in the country.

It has been estimated that the Nigerian government spends about N17.72 billion daily on fuel subsidy. A template seen by New Telegraph yesterday revealed that the current cost of importing a litre of petrol to Nigeria is about N902, using an exchange rate of N1,280/$1.

The amount includes the cost of the product, freight, insurance, govt charges, and storage. According to sources, there are costs incurred after the landing of the product in Lagos.

The costs are said to increase to N917 from the landing cost of N902. According to them, the costs include those of pipeline charge (N0.80), Nigerian Midstream and Downstream Petroleum Regulatory Authority (N3.03); Nigerian Ports Authority (N5.63).

Though some officials from agencies of the government had denied the reintroduction of fuel subsidy, the Special Adviser to President Bola Tinubu on Energy, Mrs Olu Arowolo Verheijen, had recently given an indication that the federal government has reintroduced fuel subsidies. According to her, the Federal Government has the right to intervene in the price of fuel in the country.

New Telegraph

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