NNPC subsidising petrol by over 60% – Ecobank report

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Pan-African lender, Ecobank, said in a report yesterday that the Nigeria National Petroleum Corporation (NNPC) continues to subsidise the pump price of petrol by over 60% of the regulated N145 price per litre, Daily Trust reports.

Ecobank Research, the research department of the bank, in the report tagged “2018 Nigeria Downstream market outlook,” said the landing cost of petrol at the prevailing market exchange rate was already higher than the retail price but NNPC continues to absorb the difference between the landing cost, meaning that the corporation is essentially subsidising petrol without paying any subsidy to marketers.

“Going by the last published PPPRA gasoline pricing model and our estimation of the current landing cost of gasoline, we believe the NNPC continues to subsidise the pump price by over 60% of the regulated price of NGN145/litre.” it said. The report however found that the price of petrol in Nigeria remained the lowest among neighbouring countries with active land borders and the lowest in all sub-Saharan Africa even at N145 per litre in 2017.