The official pricing template for
Premium Motor Spirit, otherwise
called petrol, by the Petroleum
Products Pricing Regulatory Agency
on Monday showed that the Federal
Government was still subsidising the
product by N6.45 per litre.
This is despite claims by the Minister
of State for Petroleum Resources,
Dr.IbeKachikwu, who on Sunday
stated that petrol was currently not
being subsidised by the government.
Although the latest update on the
PPPRA template was done on Friday,
December 25, it showed that the
Expected Open Market Price for
petrol was N93.45 per litre as against
an official retail pump price of N87
per litre.
This indicates that the Federal
Government is still subsidising the
commodity by N6.45 for every litre
consumed across the country.
According to the template, the EOMP
comprises of the landing cost of
N77.96 per litre of the product and
the subtotal margins of N15.49 per
litre.
The landing cost is made up of
trader’s margin, N1.47; lightering
expenses, N4.07; Nigerian Ports
Authority cost, N0.77; financing,
N0.51; jetty through put charge, N0.8;
storage charge, N3; and commodity
plus freight charge, N67.34.
For the cost elements that make up
the subtotal margins for each litre of
petrol, the template showed that
retailers cost was N4.6; transporters’,
N2.99; dealers’, N1.75; bridging fund,
N5.85; marine transport average,
N0.15; and administrative charge,
N0.15.
A combination of all the above
figures showed that the EOMP of
petrol is N93.45, against a retail
pump price of N87 per litre, leaving a
subsidy of N6.45 for every litre of
PMS.
Kachikwu, who doubles as the Group
Managing Director of the Nigerian
National Petroleum Corporation, had
told journalists in Kaduna on Sunday
that the government was currently
not paying subsidy on petrol.
“Today, there is no subsidy; we are
selling the product at N87; in
January, we will look at what the
trend is, we will announce (a new)
price if that is less than N87; we will
announce it and if it is more than
that, we will have to announce it,”the
minister had said.
Some senior officials of the Petroleum
ministry, who spoke on the
development, stated that the minister
might have made the assertion based
on the move to review the PPPRA
pricing template.
The officials, who did not want to
contradict their boss, argued that the
new template would show that
subsidy had been gradually stopped,
stressing that this was as a result of
the fall in crude oil prices.
“I believe that the GMD has seen the
new template and that was why he
made that statement, but that does
not mean that the current template of
the PPPRA should be disregarded
because it is the basis for any other
pricing mechanism,” one of the
officials, who pleaded not to have his
name in print, said.

www.punchng.com/pppra-template-shows-n6-45-petrol-subsidy-despite-kachikwus-claim/

Cc: lalasticlala

Our Ministers...should not always be in haste to make public pronuncements. These incoherences are not in the best interest of Nigerians.

All this drama is getting tiring. I just want to get fuel to buy at the pump price of 87 naira. I am tired of the nonsense scarcity.

Whether there is subsidy or no subsidy I don't care anymore. Let the government and the greed bastards calling themselves marketers kill each other for all I care.

how is that my business ,afterall buhari once said there is nothing like subsidy .they can continue to lie to us ,so long as i get fuel at 85 naira i'm not bothered

government of the liars for the liars by the liars - ibrahim likila

Statement today, refuted tomorrow,
Proofs today, disproved tomorrow,
The lines between truth and propaganda increasingly difficult to determine.

I am tired...@ this rate, only God can tell
But this ' Tom&Jerry', 'more you look, less u see B.S' will have to end some day soon.

P.S, let them remove the damn subsidy.@ 140/ litre, wats the use

Getting there gradually,

Talk is cheap!

my question is; will there still b regulation of prices by d govt after removal of subsidy?

but wait oooo















who cares anyway

bilulu:
my question is; will there still b regulation of prices by d govt after removal of subsidy?

In my opinion, yes. Contrary to Fayose's assertion in previous news articles, it is imperative for the FG to monitor the Pump Price across the nation for retailers using a suitable pricing template. The downstream sector is still a case of oligopoly and should be controlled accordingly. Else you will find marketers colluding to set prices of convenience in upcountry regions where demand exceeds supply.

Worst case scenario, a pricing range may be set..

Lying bastards every where!!!



President .........Lair!!!


Minister Lai ....Lair!!!


COAS. ......... Lair!!!


Ibekwachukwu... Lair!!!

For the past one week now, ab been buying at 87 naira in lagos. Alimosho to be precise.

Taken s tour to seme yestday, majority of the filling station was selling at a regular price except nipco filling station after badagry.

realborn:


In my opinion, yes. Contrary to Fayose's assertion in previous news articles, it is imperative for the FG to monitor the Pump Price across the nation for retailers using a suitable pricing template. The downstream sector is still a case of oligopoly and should be controlled accordingly. Else you will find marketers colluding to set prices of convenience in upcountry regions where demand exceeds supply.

Worst case scenario, a pricing range may be set..

dey should allow us to price wen we get to fuel stations. wen u control d price d marketers will not sell below dat price even wen dey buy at a very cheap price

Anybody that takes this govt and its officials serious is just wasting his time. Here's a petroleum minister who claimed it would be difficult for his govt to finance building of new refineries at its estimated unit cost of $2.5billion now making us to believe that subsidy has been stopped.

With Nigeria's four refineries' total daily production capacity of 10,000,000 litres(when fully turned around), how would they augment the remaining shortfall of 30,000,000 daily consumption without paying subsidy to oil marketers knowing fully that NNPC doesn't have the capacity to meet up with local demand.

More importantly, what happens if international crude price suddenly jumps to as much as $100/litre tomorrow, does it mean Nigerians would he forced to pay as much as N150/litre?

The govt should swallow its pride and tell Nigerians the whole truth about the subsidy regime. Trying to scratch it on the surface is a time bomb waiting to explode.

This back and front Subsidy talk shows that there is more to it.

Lost confidence in that Kachikwu guy a long time ago, he is operating in an imaginary Nigeria.

demarc001:
The official pricing template for
Premium Motor Spirit, otherwise
called petrol, by the Petroleum
Products Pricing Regulatory Agency
on Monday showed that the Federal
Government was still subsidising the
product by N6.45 per litre.
This is despite claims by the Minister
of State for Petroleum Resources,
Dr.IbeKachikwu, who on Sunday
stated that petrol was currently not
being subsidised by the government.
Although the latest update on the
PPPRA template was done on Friday,
December 25, it showed that the
Expected Open Market Price for
petrol was N93.45 per litre as against
an official retail pump price of N87
per litre.
This indicates that the Federal
Government is still subsidising the
commodity by N6.45 for every litre
consumed across the country.
According to the template, the EOMP
comprises of the landing cost of
N77.96 per litre of the product and
the subtotal margins of N15.49 per
litre.
The landing cost is made up of
trader’s margin, N1.47; lightering
expenses, N4.07; Nigerian Ports
Authority cost, N0.77; financing,
N0.51; jetty through put charge, N0.8;
storage charge, N3; and commodity
plus freight charge, N67.34.
For the cost elements that make up
the subtotal margins for each litre of
petrol, the template showed that
retailers cost was N4.6; transporters’,
N2.99; dealers’, N1.75; bridging fund,
N5.85; marine transport average,
N0.15; and administrative charge,
N0.15.
A combination of all the above
figures showed that the EOMP of
petrol is N93.45, against a retail
pump price of N87 per litre, leaving a
subsidy of N6.45 for every litre of
PMS.
Kachikwu, who doubles as the Group
Managing Director of the Nigerian
National Petroleum Corporation, had
told journalists in Kaduna on Sunday
that the government was currently
not paying subsidy on petrol.
“Today, there is no subsidy; we are
selling the product at N87; in
January, we will look at what the
trend is, we will announce (a new)
price if that is less than N87; we will
announce it and if it is more than
that, we will have to announce it,”the
minister had said.
Some senior officials of the Petroleum
ministry, who spoke on the
development, stated that the minister
might have made the assertion based
on the move to review the PPPRA
pricing template.
The officials, who did not want to
contradict their boss, argued that the
new template would show that
subsidy had been gradually stopped,
stressing that this was as a result of
the fall in crude oil prices.
“I believe that the GMD has seen the
new template and that was why he
made that statement, but that does
not mean that the current template of
the PPPRA should be disregarded
because it is the basis for any other
pricing mechanism,” one of the
officials, who pleaded not to have his
name in print, said.

www.punchng.com/pppra-template-shows-n6-45-petrol-subsidy-despite-kachikwus-claim/

Cc: lalasticlala

And the truth comes out!
Subsidy existence

I think Buhari should consider firing some ministers.

@topic: the FG should remove this subsidy. N93 per liter is affordable by Nigeria standard.

bilulu:

dey should allow us to price wen we get to fuel stations. wen u control d price d marketers will not sell below dat price even wen dey buy at a very cheap price

The template determines the price based on the global crude oil price and average price of refined petroleum products. As the decline continues, the cost reduces. Monitoring and control by a statutory agency is important, otherwise, independent marketers will take undue advantage.

Great decision. Useless marketers are now drinking the fuel in most stations. Useless business men and women.