The Federal Government on Monday said it was currently subsidising petrol at N12.62 per litre.
It said that the subsidy figure was for petrol imported directly by the Nigerian National Petroleum Corporation (NNPC) and dispensed at its retail outlets, while the rate was N12.88 per litre for other oil marketers.

This is contained in the latest Petroleum Product Pricing Regulatory Agency (PPPRA) Template released in Abuja.

It said that although provision was not made for subsidy in the 2016 budget, it would be defrayed from “recoveries’’ made by the country from oil transactions in the first quarter of 2016.

According to the agency, between January and March 2016, the Federal Government was able to save about N10 billion as a result of selling the product above the Expected Open Market Price.

It explained that without the subsidy and given the landing cost of the product, it ought to be sold at N98.62 per litre at NNPC outlets and at N99.38 per litre by major and independent oil marketers.
According to the template, the expected open market price is the actual price of the product without subsidy and it was based on the current exchange rate of N197 to a dollar.

A breakdown of the template reveals that for NNPC retail outlets and independent and major oil marketers, landing cost of petrol imported into the country is N84.32 and N85.08 per litre, respectively.

It stated that the distribution margin, which include retailers, transportation, bridging fund and dealers margin stood at N14.30 for both NNPC and other marketers.

“This brings the current Expected Open Market Price to N98.62 and N99.38 for NNPC retail outlets and other marketers respectively,” it said.

BiafraBushBoy:
I voted out GEJ Cus of this fuel issue...

Buhari must go too....

hmuhammad:
you never voted for Buhari. You are amongst the 5%

BiafraBushBoy:
I voted out GEJ Cus of this fuel issue...

Buhari must go too....

Agimor:
Lol like say you dor even clock 18 self.

shachris02:


bush man, at least explain the point in the post and stop abusing people like a bush boy.

How did we go from paying `12 Naira as subsidy to almost 60 Naira now it's removed?

According to the template, the expected open market price is the actual price of the product without subsidy and it was based on the current exchange rate of N197 to a dollar.

3. The meeting also noted that the main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.

2. All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.

hmuhammad:
[s][/s]IPOB tout, no explanation will pass through your thick skull. Remember you hate PMB with passion, but he's going to govern you till 2023.

sparrowkid:
The little explanation for that is simple. Previously, they were giving the marketers FX through CBN at the official rate of N197. But now they have asked the marketers to source for their own forex at the rate of N285 according to the Minister of state for Petroleum Resources yesterday on Channels TV. The PPPRA used the unofficial rate in the calculation.

shachris02:


abooki check my previous post to see if i support ipob.

it's non entities like you that make the government feel that Nigerians are cool with whatever shiit they come up with.

naptu2:


http://www.premiumtimesng.com/business/business-news/202792-petrol-sell-n99-38-per-litre-without-subsidy-pppra.html

Agimor:
Lol like say you dor even clock 18 self.

989900:
This is the true cost @ N197 to $1.

shachris02:

this simply means that the naira is already devalued.

LadyExcellency:


How come the exchange rate when it has been revealed that we swapped crude for refined product while the refinery buys constituents we don't need out of it?

hmuhammad:
you never voted for Buhari. You are amongst the 5%

Who knows if you've clocked 18 years? Children just full NL

richidinho:


http://www.premiumtimesng.com/business/business-news/202792-petrol-sell-n99-38-per-litre-without-subsidy-pppra.html