Federal Government End Subsidy on Kerosene

The Federal government has ended subsidy payment on Kerosene (HHK) thereby increasing the price of the commodity from N50 per litre to N83 per litre, as the federal government prepares to officially end Petroleum subsidy payment.

The Petroleum Products Pricing Regulatory Agency, released its product pricing template released over the weekend- where it was stated that N83 per litre price will only be obtainable at the Nigerian National Petroleum Corporation (NNPC).

Consequently, all other petrol stations and dealers across the nation can sell at N33 higher than the initial amount.

The template of the PPPRA stipulates that the Federal Government makes a profit of N10.72 for every litre of kerosene sold at N83 per litre while the Landing Cost plus Total Margins was pegged at N72.28 per litre.

The expected open market price is the prevailing open market rate for the product in Nigeria, after taking certain costs into consideration.

The increase in the price of kerosene comes at a time when there is a worldwide crash in the price of crude oil and petroleum products.

The federal government had earlier this month announced the reduction of pump price of petrol from N87 per litre to N86.50k per litre.