are indications that the Federal Government is set to pay N163 million fuel subsidy daily to oil marketers because the slight increase in crude prices.
A survey of markets showed that oil prices have increased from about $29 to $40 per barrel, indicating additional cost to refining companies.
Already, the Petroleum Product Pricing Regulatory Agency, PPPRA which had discouraged the government from paying subsidies because of prolonged era of very low crude prices has advised it to start payment.
The PPPRA believed that it has become necessary for the president Buhari-led administration to commence the subsidy payment from April, this year.
The agency put the subsidy at N4.09 per liter in its April, 2016 template posted over the weekend.
This amounted to N163 million daily as the nationâ€™s estimated daily demand for fuel hovered at 40 million liters.
The PPPRA puts the nationâ€™s landing cost for fuel, including cost and freight, traders margin, lightering expenses, NPA, NIMASA, jetty/depot thru charge an storage charge at N75.79 per liter.
The agency put total sub margins, including administrative charge, marine transport average, bridging fund and margins at N14.30 per liter.
It puts total cost, including highway maintenance, government tax, import tax, fuel tax and subtotal taxes at N90.09 per liter.
The PPPRA also puts the official ex-depot, ex-depot and ex-coastal prices at N71.70, N76.00 and N71.19 arrived at an under recovery of N4.09 per liter.
The executive secretary of Major Marketers association of Nigeria, Mr. Femi Olawore said in a telephone interview yesterday that the subsidy is justified because of the slight increase in oil prices.
He said the subsidy would enable marketers to recover cost involved in the process of importing commercial quantity of fuel into the nation.
It was learnt that the government would need to pay more as subsidy should crude oil prices continue to surge in the global market.
However, there was improvement in fuel supply because of the involvement of many stakeholders over the weekend.
A visit to Apapa in Lagos showed that many marketers were involved in lifting of fuel to many destinations.
The involvement followed the agreement signed with tank seven farm owners for the storage and lifting on imported fuel a few days ago.
The tank farm owners include Capital Oil, NIPCO, MRS, Folawiyo and hen petroleum among others.
The tank farm owners were chosen because they have the capacities to store and facilitate lifting to filling stations.
A Capital Oil source indicated that loading which started a few days ago goes on day and night in order to enable the government tackle the fuel scarcity.
Unlike before, many stations were open to motorists and others to buy the product, even though many still find it difficult to buy fuel.
However, the Organisation of Petroleum Exporting Countries, OPEC noted in its March, 2016 report that the OPEC Reference Basket recovered in February for the first time in three months, gaining 8.4per cent or $2.22 to reach $28.72/b.
The cartel disclosed that in the emerging economies, India and China are seen continuing to expand at a considerable pace of 7.5per cent and 6.3per cent, respectively.