Savings from the removal of removal of subsidy on both petrol and kerosene continue to grow on a daily basis leading to over N18.3bn on Premium Motor Spirit (petrol) and House Hold Kerosene (kerosene) between January 1 and February 12 this year an interval of about six weeks.
Recall that the Federal Government ended the petrol subsidy regime on January 1, 2016 and that of kerosene January 23 this year.
Results from the pricing templates for both commodities obtained from the Petroleum Products Pricing Regulatory Agency (PPPRA) show that, when multiplied by the average over recovery on the product and the number of days (January 1 to February 12), the government must have made extra cash of N15.88bn from the sale of petrol alone.
The Nigerian National Petroleum Corporation figures say that about 40 million litres of petrol are being consumed daily in the country while its subsidiary, the Pipelines and Product Marketing Company, PPMC said Nigeria consumes about 11 million litres of kerosene daily.
For kerosene, findings showed that an average over recovery of N10.25 was made by the Federal Government on every litre of HHK sold since January 23, when subsidy was officially removed on the product.
The PPPRA has posted four updated templates for kerosene. They were posted on January 23, January 30, February 11 and February 12, 2016, while their over recoveries per litre were N10.72, N6.3, N12.51 and N11.47, respectively.
If you multiply the average over recovery on kerosene with the volume consumed daily, you will find that about N2.4bn has been saved by the government since subsidy was officially removed on January 23 this year.