LAGOS — Nigerians have been forced to pay as much as N150/litre of kerosene instead of the government subsidised rate of N50 because the Nigerian National Petroleum Corporation, NNPC, chose to sell kerosene to depot owners rather than retail outlet owners as required of it.

A Report by the Technical Committee on Payment of Fuel Subsidies, submitted to Mr President and exclusively obtained by Vanguard, revealed that the NNPC flouted the policy on its monopoly to import kerosene, which comes in as Dual Purpose Kerosene, DPK, at subsidized rate to serve the masses.

Rather than deliver the product to retail outlet owners so that it could benefit the masses for which it was being subsidized, the NNPC, instead, chose to sell it for patronage, or what the committee described as “rent” to depot owners.


The struggle to buy Kerosene, an household commodity for cooking, becomes more challenging even at a NNPC petrol Station in Lagos. Photo by Lamidi Bamidele
The depot owners who got the product at N40.90/L ex-depot price, in turn sold it to marketers and retail owners at between N115 and N125/L depending on the operator, a development that led to the masses buying the product at 300 per cent increase at N150/L instead of the recommended price of N50/L.

“The distribution of DPK which was being imported solely by NNPC was skewed in favour of depot owners who have no retail outlets. Two-thirds of the kerosene sold by NNPC between 2009 and 2011 was sold to depot owners and “middle men” who in turn sold the product to owners of retail outlets at inflated prices of between N115.00 and N125.00 per litre (compared to the ex depot price of N40.90), leaving consumers to pay higher prices than the N50.00 per litre directed by Government,” the report said.

It added: “For several years now, the country has been incurring huge subsidy bills for kerosene and its citizens are not receiving the benefit – instead the country has been financing “rent” for the middlemen.”

engineerd: bastard country!! wicked leaders leading mumu people!

engineerd: bastard country!! wicked leaders leading mumu people!

chuks49:
Nigerians have been forced to pay as much as N150/litre of kerosene instead of the government subsidised rate of N50 because the Nigerian National Petroleum Corporation, NNPC, chose to sell kerosene to depot owners rather than retail outlet owners as required of it.

born2fuck: who are the mumu people? I thought sensible people make comment here, shit

Godman_n:

Me and you are the mumu people. I am sure you are one because if you are nkit, you would have understood how the stupidity of we Nigerians (our actions and inactions)created the mess we are in.

Si You are Mumu and I am mumu until we clean up the mess we are in.

Ortis: Let me join d moving train.....nd loot money wit our leaders.....THEIVES

born2fuck: who are the mumu people? I thought sensible people make comment here, shit

gbadexy: Leave the president out of this, much as I criticize his administration, this is clearly corruption from the NNPC.
I wonder what the phock the bleeping larmode is doing.
Do we still have antigraft body in this country at all.

Billyonaire: So many fish brains on Nairaland, instead of seeking to know the depot owners who buy at such cheap rate and sell at exorbitant price, they are cursing each other.

johnson64: the leaders of this country are not doing the right thing

Rich Dad:
CAPITAL OIL