Fuel subsidy removal saves N647m daily

Nigeria is currently saving N647.2 million daily from the suspension of subsidy on Premium Motor Spirit (PMS), also known as petrol, Vanguard reports.

At the current price of N86.50 per litre in petrol stations across the country, the country is making an extra N16.18 per litre. The saving is partly due to the continuous decline in the price of crude oil in the international market, which dragged the open market price of petrol to N70.32 per litre.

The Federal Government had stated that this extra saving was kept in an escrow account to serve as a cushion in the case of an eventuality, such as if the price of crude oil rebounds, leading to an increase in the selling price of PMS. The amount the country is saving is based on a 40 million litres average daily consumption of PMS by Nigerians as declared by the Federal Government.

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