FG to Pay ₦39.9bn Monthly Subsidy as Petroleum Import Declines

The importation of refined petroleum products will decline in March 2019, even as Nigerians consume an average of 53.2million litres of Premium Motor Spirit (PMS), which is also known as Petrol, daily.

According to the latest Shipping Position Report released by the Nigerian Ports Authority (NPA), out of the twenty-six (26) vessels expected into the Lagos port between now and March 11, only one is conveying the PMS.

Compared to the previous two months of February when a total of 23 PMS laden vessels came through the Lagos ports prior to the election, the expected import is set to be the lowest volume of PMS to arrive the country in a while.

It could be recalled that in January, 30 vessels conveying PMS arrived the Lagos port.

According to the report, MV Joyce Cargo is the only vessel conveying PMS, while the other 25 vessels are loaded with other products such as ethanol, bulk wheat, sugar, gypsum, salt and general cargoes.

In recent months, the Nigerian National Petroleum Corporation (NNPC) has been premeditating plans to stop the importation of refined petroleum product into Nigeria.

The NNPC sees the stoppage of refined petroleum products importation as the appropriate policy move to pave way for the rehabilitation of the local refineries in Warri, Port Harcourt and Kaduna, thereby domestically refining the required volume of PMS for local consumption.

In the meantime, the Federal Government will pay ₦39.9 billion for fuel subsidy. With Nigerians consuming about of 53.2 million litres of PMS every day, the implication is that an average of 1.6 billion litres is consumed within 30 days. This, multiplied by the ₦25 per litre of subsidy which the Government is expected to pay, means that FG will absorb a total of ₦39.9 billion worth of subsidy every 30 days.

 

 

 

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