The federal government reportedly paid N169.4 billion as subsidy in August to keep the pump price at N620 per litre, DailyTrust reports.
MarvelTvUpdates understands that the payment of N169.4 billion as subsidy in August was to keep the pump price at N620 per litre.
Considering the dynamics of the global oil market, one might guess right to say the federal government had to quietly return to the subsidy regime to save Nigerians from further hardships.
The international oil benchmark Brent crude futures crossed the $95 per barrel barrier. This, with the current rapid depreciation of the naira, only indicates that the landing cost of petrol has gone beyond the current pump price of N617 per litre.
In the last week of August, petrol was trading for $1,030.11 per metric tonne at the international market compared with the $859.25 it traded around July when NNPC increased the pump price to an average of N617 per litre. This shows an increase of 19.88 per cent.