The subsidy on petrol that the Federal Government will pay has hit 1.2 billion naira after it slashed the price of the product by N10 per litre on January 18, 2015 according to figures from the Petroleum Products Pricing Regulatory Agency (PPPRA).

The PPPRA, stated that the Expected Open Market Price for petrol, which is the summation of the landing cost plus the subtotal margins, was N101.50, as against the approved retail price of N87 per litre.

This showed that the government will pay about N14.5 as subsidy on every litre of petrol consumed in the country in the past two days that the price of Brent averaged $61 per barrel.

Read More: Punch