The Federal Government may end up spending around N1.23tn on fuel subsidy in 2012, the Petroleum Products Pricing and Regulatory Agency has said.
The Executive Secretary, PPPRA, Mr. Reginald Stanley, said this in Abuja as he appeared before a joint committee of the House of Representatives to defend the fresh N161.6bn request for subsidy by President Goodluck Jonathan.
If the N161.6bn is approved by the National Assembly, it will bring budgeted subsidy claims for the year to about N1.049tn.
The government initially budgeted N888.1bn for subsidy claims before Jonathan made the fresh request last week.
Stanley, however, said what the government had done was to settle verifiable claims, adding that the projected total payment up to December 31, 2012 would be around N1.23tn.
However, he said the figure would be an “improvement” on the total subsidy payment for 2011, which stood at N2.09tn.
Stanley appeared before the Joint Committee on Appropriation/Petroleum Resources (Upstream)/Petroleum Resources (Downstream), which is seeking explanations for the additional N161.6bn request.