The Federal Government has officially ended the subsidy on premium motor spirit, popularly known as petrol. The latest Petroleum Products Pricing template, issued by the Petroleum Products Pricing Regulatory Agency does not contain the usual subsidy component.
The PPPRA is the government agency that regulates the prices of petroleum products in the country and its template has always offered insights into how the pricing of these products are determined by the regulators.
As of December 28 last year, the official pricing template for petrol by the PPPRA showed that the Federal Government subsidised the product by N6.45 per litre. The Expected Open Market Price at that time was N93.45, which was N6.45 higher than the then retail price of N87 per litre.