Nigeria Pays $14 MM for Fuel in June, Despite Subsidy Removal

Nigeria Pays $14 MM for Fuel in June, Despite Subsidy Removal

Nigeria’s state-owned oil company, Nigerian National Petroleum Corporation (NNPC), recorded a $14 million cost for fuel in June, months after it changed its pricing method in an effort to eliminate subsidies, according to Reuters.

NNPC spokesman Kennie Obateru said, “Since the subsidy removal started with a reduction in pump price, marketers have to be paid the differential of the (government) verified stock they held.”

With this said, the costs are deemed to be temporary payments to marketers, who buy imported fuel and then sell it on, and also for stocks they held when the subsidy was removed.

Nigeria’s gasoline prices have been kept at incredibly low levels for decades with current levels at $0.48 per liter.

 

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