Okechukwu Nnodim

The Federal Government on Saturday recommenced the payment of subsidy on petrol as it subsidised the commodity by N5.84 for every litre of premium motor spirit consumed in Nigeria.

Subsidy on petrol was stopped in January after the review of the pricing template of the product by the government.

It also announced that the current official pump prices of petrol would remain at N86 per litre when purchased at filling stations run by the Nigerian National Petroleum Corporation and N86.5 per litre when sold at outlets operated by other oil marketers.

The government further said petrol scarcity would end in a few days, but was silent on the specific day or date.

Figures from the latest pricing templates of the Petroleum Products Pricing Regulatory Agency released on Saturday, showed that the Federal Government was paying N5.84 as subsidy on every litre of petrol sold at non-NNPC filling stations.

The PPPRA is the agency of the Federal Government that regulates the prices of white products — petrol and kerosene, across the country.

According to the agency, the Expected Open Market Price of petrol for non-NNPC stations as at April 2, 2016, was N92.34 per litre, against an official pump price of N86.5 per litre, leaving an under-recovery or subsidy of N5.84 per litre.

Similarly, the template for NNPC-run stations showed that the government was paying N5.80 per litre as subsidy, as the EOMP for outlets in this category was N91.80 per litre as against an official rate of N86 per litre.

The EOMP is the actual cost of petrol without subsidy and comprises of the landing cost of the product as well as its subtotal margins like transporters charge, admin fee, dealers cost, bridging fund, etc.

On the retained pump price of petrol, the Acting Executive Secretary, PPPRA, Mrs. Sotonye Iyoyo, said, “The agency is retaining the retail prices of N86.00 for the NNPC, and N86.50 for the other marketing companies. The pump price of household kerosene also remains unchanged from what it was in the last quarter.

“Therefore, marketers are advised to ensure that there is no price distortion in their respective retail outlets. PPPRA, however, shall continue to monitor the global oil market performances, and come up, at appropriate time, with reasonable changes consistent with the newly-adopted price modulation principles.”

On news making the rounds that the agency was planning to increase the petrol price, Iyoyo urged members of the public to ignore such rumour, as prevailing market indicators do not support such.

She also called on motorists to desist from panic-buying, stressing that “PPPRA was working hard with other sister-organisations to ensure that the current supply and distribution challenges were resolved within the coming days.”

Meanwhile, the agency stated that it had released the second quarter allocations for the supply of petrol, based on the approval of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

It said, “In the latest release, the apex national oil company, the NNPC, has 41.74 per cent of the total allocation, while the rest of the oil marketing companies got a total allocation of 58.27 per cent.”

jerseyboy:
In what universe are these guys living?

Anticorruption:



apc and confusion

Anticorruption:



apc and confusion

Firefire:
“We have been able to eliminate subsidy payments by managing prices at current levels through price modulation. This has resulted to savings of N100 billion monthly for the nation,”

Nonsensical nonsense.

Why is this government so deceitful and fraudulent ? You mention savings and price management ?

See my computation below, and let someone tell this government to stop telling lies about savings when Nigerians are the one indirectly paying for the removed subsidy.

Few days later (3rd April 2016) same government is now announcing the returns of petrol subsidy by N5.84 for every litre of premium motor spirit consumed in Nigeria. Please, why are they returning the alleged fraudulent fuel subsidy payment

According to Ibe Kachikwu: “We can’t even understand where those subsidies were going to. There are a lot of fraud elements in it so we need to cut that off.

The call for government to scrap the payment of subsidy on petrol has become louder recently following the drop in crude oil prices.

Also, All Progressives Congress and former Governor of Lagos, Bola Tinubu, joined the call for the government to scrap the subsidy regime.

Mr. Tinubu, who had opposed the removal of the subsidy under the administration of former President Goodluck Jonathan, said subsidy was originally a good idea, but it had since been “perverted”.

amaechi1:


Nigerians will also complain even when decisions are taken in their favour. In the bid to alleviate the suffering of the people, the government return subsidy payment for independent marketers and that is what people like you see as confusion.

brixton:
Everyday we see reasons to regret voting in chain-ge

According to the agency, the Expected Open Market Price of petrol for non-NNPC stations as at April 2, 2016, was N92.34 per litre, against an official pump price of N86.5 per litre, leaving an under-recovery or subsidy of N5.84 per litre.

Similarly, the template for NNPC-run stations showed that the government was paying N5.80 per litre as subsidy, as the EOMP for outlets in this category was N91.80 per litre as against an official rate of N86 per litre.

The EOMP is the actual cost of petrol without subsidy and comprises of the landing cost of the product as well as its subtotal margins like transporters charge, admin fee, dealers cost, bridging fund, etc.