Fuel Subsidy Jumps to N15.82 per Litre, N632milion per day

The latest fuel subsidy data published by the PPPRA for February  17, 2015 shows fuel subsidy has risen to N15.82 per litre, the highest since the government reduced fuel price to N87 per litre. With Nigeria said to be consuming about 40 million liters per day, that puts fuel subsidy at about N632.8million daily if the price remains the same. Exchange rate used was N171.36.

Brent crude has seen a resurgence in recent days rising  by 65 cents to $62.05 a barrel Tuesday. US crude was 60 cents higher at $53.38 a barrel. The increase in Brent crude is not likely to continue as most analysts still see further room for a drop in prices. Nevertheless, the government will continue to spend huge if oil prices continues to stage a rebound.