See FG'S defense as filling stations adjust petrol pump prices again

• The federal government has denied paying extra money to cover the landing cost of refined petroleum products
• Despite recent reports of a significant increase in landing costs which is now above N1,000 based on calculation
• The government insists no subsidy payments have been made since President Bola Tinubu famous subsidy declaration at inauguration

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The federal government has once again denied claims that it is paying extra money to cover the shortfall in the landing cost of refined petroleum products.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy stated this during a media briefing in Abuja on Thursday, July 25.

President Tinubu administration denies subsidy payment Photo credit: Benson Ibeabuchi
Source: Getty Images

According to recent reports from the Major Oil Marketers Association of Nigeria, the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, was N1,117 per litre as of July 16, 2024.

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This calculation is based on the prevailing exchange rate of N1,500 to one US dollar.

Tinubu govt insists no subsidy payment

Despite the significant increase in landing costs, the federal government insists that no payments have been made to cover the under-recovery of imported petrol products since May 29, 2023, when President Bola Tinubu abruptly ended the fuel subsidy regime.

Wale Edun stated:

"Mr. President said on May 29 that subsidy is gone. Subsidy is gone. We do not have a line in the budget for subsidy payment. "We do not have payments being made, whether in the budget or out, by the federal government of Nigeria or even the federation directly for subsidy."

Edun stressed that the Nigerian National Petroleum Company Limited (NNPCL) has been absorbing the impact of exchange rate fluctuations as part of its responsibility to ensure the availability of petrol in the local market.

This arrangement, he emphasized, does not equate to a government subsidy.

Filling stations adjusts pump price

Meanwhile, petrol pump prices across various filling stations have been adjusted yet again.

The National Bureau of Statistics price watch report showed that the average pump price of petrol increased to N750 per litre from previous price of N545.83 per litre as at 2023.

The report stated that Benue State had the highest petrol price at N864.55 per litre, followed by Jigawa and River states at N847 per litre and N810 per litre, respectively.

The rising petrol prices are one of the reasons Nigerians are considering a nationwide protest on August 1, 2024.

Dangote confirms petrol sales in August

Earlier, Legit.ng reported that Dangote, in a chat with journalists, confirmed that petrol production had already begun.

The billionaire also revealed that petrol sales to marketers would commence from August 2024.

The refinery is expected to help reduce petrol prices from the current rate of over N700.

Source: Legit.ng