The Petroleum Products Pricing Regulatory Agency (PPPRA) said Federal Government would be collecting N8 per litre as subsidy on petrol imported by NNPC and other marketers. Alhaji Farouk Ahmed, outgoing Executive Secretary of the Agency, announced this while handing over to Mr Moses Mbaba, General Manager Administration, and Human Resources, last week in Abuja.

Ahmed is among the heads of government agencies that were disengaged and asked to hand over to most senior directors in the office. “The subsidy as at today came down to minus N8 per litre for PMS. “ What I mean by minus N8 is that government now will collect N8 for every litre imported by NNPC and marketers as against payment to marketers and NNPC,’’ he said.

He said that at the close of work on Feb. 16, the subsidy on petrol was N13.81k, adding that the landing cost was lower than the selling price by N13.81k. According to him, it translates to what is called over recovery.

Ahmed said that an Over Recovery Account had been opened with the Central Bank of Nigeria on Feb. 3 and would be managed by the Office of the Accountant General of the Federation. He said currently, about N2.6 billion had been lodged into the account with the December importation by NNPC and the marketers.

“This is just the beginning because some of products just arrived in December; that’s why the subsidy over recovery is low. “But for those cargo that are loaded in January for example, we want the over recovery to start manifesting; then by calculation, we will begin to know what the price will be for marketers and NNPC respectively,’’ he said.

Commenting on review of template for price modulation in the first quarter, he said the agency was building data which it would analyse at the appropriate time. He said that the data would look at the trend and analyse how the market had fared in the last two and half months.

He added that the agency would also check what the over recovery accumulated into before advising the minister. He said that stakeholders in the sector would meet next week to deliberate on the development which would form part of the decision on the price going forward.

He noted that the price modulation review had some challenges but had led to the over recovery witnessed in the sector. “There are a lot of things and that’s why we are into over recovery because first of all, we looked at the pricing after we reviewed the template.

“The review instilled some efficiency and cost savings and that cost savings translated into reduction of pump price even though it is 50k and N1 but it is an indication that something is working. “That is the whole essence of modulation; cut cost; be more efficient and let Nigeria enjoy the benefit of that efficiency,’’ he said.

He expressed the hope that with over recovery, there might be price reduction on PMS in March after the review of the template. He called on the staff to support the incoming leadership of the agency and advised his predecessor to continue with the legacy established by the agency to ensure positive change.

http://www.financialwatchngr.com/2016/02/22/fg-collects-n8-per-litre-on-imported-pms-pppra/

Hmmmmm.. This govt is as confused as confusion itself. Na different different story everyday
maybe they should take their activities abi na news away from the media for now. Make them no dey disturb our brains.

Check my signature for ur customised wristband

Hmm! They better make good use of that money.

So in actual sense Nigerians are the one subsidizing fuel for the government now. Buhari, this is not what we voted u for o.

BTW, tot subsidy has been stopped, how then is it that they are recovering money as a result of low landing cost which suggests that the government gave the importers much more money to subsidize the importation.

And for the uptenth time, it's is unwise of the giant of Africa to have one of the best crude in the world and be unable to refine sufficient quantity for her population.

Do Nigerians even know that for every liter of refined product that ships out of Kaduna refinery, the crude was imported?

Thieves

APC keeps stealing Nigeria dry

Criminals

this government is more confusing than a chinese novella.

is there subsidy or not??

@Sambisaman

No more subsidy instead govt will be making profit from every litre purchase by Nigerians.

It's estimated that Nigerians consume 33 Million Liters daily.

33Million X N8 = N264Million Naira daily X 365
Days = 96.37Billion Annually the FG will benefit from Nigerians.

Government of Change need its citizen to indirectly pay tax for using PMS, Banks and other things
It is well

confused?

This one nah avenue to thief us Blind..

No wonder Buhari decided to head that sector.

APC: Awusa Party of Confusion..

I just want it to be available and priced appropriately, unlike now

What kind of confused government is this, for the same subsidy you people condemned?


Thieves everywhere........

Mr. Man u are there for so many years we didn't hear anything from u, why is it now u were show the exit door that you are running your mouth like FFK

Change

Petrol is going for 120 per litre in some places of Port Harcourt. What is the grammer that man is talking about?

sambisaman:
this government is more confusing than a chinese novella.

is there subsidy or not??

huh?

Crude oil sells around $30/barrel, I just bought fuel in Warri for #120/liter after queueing for some time.

So what is this PPPRA thief saying?

We have never had it this bad!

SMH!

I dont understand that jargons wrote there.

Segadem:
huh?

Front and Back

I no kuku understand all these mathematics and story, e be like say I don dey turn to finance minister o

I would believe them when d said #8 start manifesting as good roads,potable water,good health care,good and free education,jobs for the unemployed and #5000 stipends for the less priviledged.

solid3:
So in actual sense Nigerians are the one subsidizing fuel for the government now. Buhari, this is not what we voted u for o.

Oboy tighten your seatbelt o, we are going back to 1984. The truth is buhari and apc don't care about the masses.

Interesting

This government is not friendly at all, what a harsh policies

ok

HMMMM

8naira on every litre of fuel? I hope the moni is nt syphoned into Personal Pockets..Oh Buhari is in charge... syphoning is Corruption