Fuel subsidy clocks N1.593tn, TAM of refinery gulps N54.66bn in 6 months

The latest data on the amount spent on subsidizing Premium Motor Spirit, aka petrol in Abuja on Monday showed that the government subsidized 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 subsidies on the commodity in January, February, and March was N210.38bn, N219.78bn, and N245.77bn, respectively.

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