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Nairaland Forum / Nairaland / General / Politics / Subsidy On Petrol Falls To N576m Daily (23766 Views)
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Subsidy On Petrol Falls To N576m Daily by GudluckIBB(m): 2:38am On Oct 05, 2015 |
From a high of N51.61 per litre on June 11, 2015, subsidy on every litre of Premium Motor Spirit consumed in the country has dropped to N14.39, data obtained from the Petroleum Products Pricing Regulatory Agency on Sunday showed. The dip in the subsidy payable by the Federal Government is partly due to the sustained decline in global crude oil prices, which have continued to trade below the $50 per barrel mark in recent weeks. The global benchmark Brent crude, which fell below $50 per barrel in January, rebounded to $65 in June, pushing up the subsidy on petrol. However, Brent traded around $48 per barrel on Sunday. Subsidy refers to the money paid, usually by the government, to keep prices below what they will otherwise be in a free market system. The PPPRA, in its latest pricing template released on Friday, October 2, 2015, stated that the landing cost and Expected Open Market Price (total cost) of petrol were N85.90 and N101.39 per litre, respectively. This is against a regulated retail price of N87 per litre. The difference between the EOMP and the retail price is, therefore, N14.39. According to the Nigerian National Petroleum Corporation, the country consumes about 40 million litres of petrol daily. By multiplying the volume of petrol consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N575.6m on subsidy, down from N2.06bn in June 11. Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state. The landing cost is the cost of the product plus freight rate at N75.03; trader’s margin, N1.47; lightering expenses, N4.19; Nigerian Ports Authority fees, N0.77; financing cost, N1.68; jetty depot throughput charge, N0.8; and storage charge, N3. The addition of the distribution margins to the landing cost gives the EOMP (total cost). The distribution margins comprise retailers, transporters and dealers’ profits as well as bridging fund, marine transport average and admin charges. Retailers get N4.6; transporters, N2.99; dealers, N1.75; bridging cost is N5.85; marine transport average, N0.15; and the admin charge, N0.15. The sub-total margin stands at N15.49. When added to the landing cost of N85.90, the EOMP of N101.39 per litre is arrived at. The Federal Government had on January 18, 2015 announced the reduction in the pump price of petrol from N97 to N87 per litre, attributing this to the decline in global crude oil prices. http://www.punchng.com/business/business-economy/subsidy-on-petrol-falls-to-n576m-daily/ 1 Like 1 Share |
Re: Subsidy On Petrol Falls To N576m Daily by harristo(m): 2:44am On Oct 05, 2015 |
So what this is trying to prove is that, the government now spending about N575.6m daily on subsidy as oppose to spending N2.06bn daily in June 11 is due to the change in crude oil price. But something tells me it is due to the reduction of corruption in the system. 97 Likes 1 Share |
Re: Subsidy On Petrol Falls To N576m Daily by Burger01(m): 3:14am On Oct 05, 2015 |
Gradually, things will start falling in place. President Buhari must be dogged and fight corruption headlong.. No retreat no surrender...no matter whose ox is gored. Every holes of corruption opened by Jonathan must be plugged. Nigeria lived in corruption under Jonathan, and this in turn destroyed Nigeria beyond early recovery. But, gradually we shall get things right.....gradually. PMB should fix electricity and watch Nigeria grow. We shall never give up on Nigeria...She's all we've got Sai Buhari 2019 Haters and wailers can hang and quench for all I care 122 Likes 5 Shares
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Re: Subsidy On Petrol Falls To N576m Daily by Nobody: 3:23am On Oct 05, 2015 |
The moment this government plug the holes for corruption, every thing automatically falls in place. God shld give them the wisdom and shield them from unwanted distractions. God shld give opposition party good sense of constructive criticism 97 Likes 2 Shares |
Re: Subsidy On Petrol Falls To N576m Daily by Republlican(f): 3:25am On Oct 05, 2015 |
Re: Subsidy On Petrol Falls To N576m Daily by loomer: 4:20am On Oct 05, 2015 |
It's just natural 2 Likes 1 Share |
Re: Subsidy On Petrol Falls To N576m Daily by aminho(m): 4:29am On Oct 05, 2015 |
Sai godiya 2 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by bjjbam: 4:32am On Oct 05, 2015 |
With this kind of news, one doesnt even know either to rejoice or to be sad. 9 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by Agimor(m): 4:33am On Oct 05, 2015 |
Are we supposed to celebrate the price reduction?of give thankd to Buhari for his shrewdness? 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by jammiller: 4:54am On Oct 05, 2015 |
Also contributing to this is a drop in consumption. Many people can no longer fuel cars and generators as the economy is so bad due to low income. The government should come up with a true graph of consumption and importation. The relative improvement in power supply also contributes to drop in consumption, but most of all, the economy is in decline as so many people are out of work and can't afford to live luxurious life anymore lately. 14 Likes 2 Shares |
Re: Subsidy On Petrol Falls To N576m Daily by benpedro(m): 5:00am On Oct 05, 2015 |
Too many lies from this government. They have actually lost their credibility 5 Likes 3 Shares |
Re: Subsidy On Petrol Falls To N576m Daily by jomoh: 5:08am On Oct 05, 2015 |
Re: Subsidy On Petrol Falls To N576m Daily by DaBullIT(m): 5:10am On Oct 05, 2015 |
I predict a response from chief wailer Why Buhari shouldn't be praised for fall in subsidy cost by tonyebarcanista 43 Likes 3 Shares |
Re: Subsidy On Petrol Falls To N576m Daily by oloriooko(m): 5:32am On Oct 05, 2015 |
but I thought this regime does not believe that there is anything called subsidy so why even mention it? campaign mouth blastings is a different ball game from the real governance God bless Nigeria God help PMB 7 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by PassingShot(m): 5:43am On Oct 05, 2015 |
benpedro:The same way you guys shouted "too many lies from APC" when presented with facts prior to election. I guess you know how that denial of facts served you all. Not many Nigerians are as foolish as you want people to believe. They wear the shoes and know where they pinch. The earlier you all face reality, the better for your reasoning ability. 29 Likes 1 Share |
Re: Subsidy On Petrol Falls To N576m Daily by odinese(m): 5:54am On Oct 05, 2015 |
Nice. . I'm proud of him! 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by Aufbauh(m): 5:55am On Oct 05, 2015 |
"People who say it cannot be done should not interupt those who are doing it" - George Bernard Shaw With time people will understand the earlier statement of Mr president when he said there is no subsidy. The sudden and drastic reduction in subsidy payment is a pointer that the Jonathan administration is a mishap and if he's innocent as portray then he should have a sober reflection and apologize to Nigerians for allowing 'the undertakers' to take over his government. 21 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by Nobody: 6:41am On Oct 05, 2015 |
Nice one |
Re: Subsidy On Petrol Falls To N576m Daily by anigbajumo(m): 6:56am On Oct 05, 2015 |
harristo: Only the wailers ar blind to see that.... Wailling wailers are free to romance in the Lagoon. Sai Baba, 8 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by TonyeBarcanista(m): 7:46am On Oct 05, 2015 |
The dip in the subsidy payable by the Federal Government is partly due to the sustained decline in global crude oil prices, which have continued to trade below the $50 per barrel mark in recent weeks.The fall in oil price means a reduction in the money payable on subsidy. This is simple economics that has NOTHING to do with the effort of Buhari. Is Buhari OPEC? 15 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by TonyeBarcanista(m): 7:53am On Oct 05, 2015 |
Agimor:It's just natural for the subsidy bill to fall. Drop in oil price means a reduction in the cost of buying the refined product by marketers. It also means a reduction in the landing cost and the cost in Open Market. This will naturally yield a reduction on subsidy bill. 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by dekdek: 7:59am On Oct 05, 2015 |
TonyeBarcanista: Protection seeker, actually it is simple economics because the General is in charge. When Jonah-daft was in charge, despite decline of oil price money payable on subsidy was never heard of to be declining yet u goons kept on succking his cocck without asking the right questions. 47 Likes 3 Shares |
Re: Subsidy On Petrol Falls To N576m Daily by segebobo: 7:59am On Oct 05, 2015 |
Thank God for that. They could still av been claiming a huge amount on the subsidy despite the drop in oil price tho, but as 'stealing is now corruption' they can't inflate the price 4 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by Beremx(f): 8:05am On Oct 05, 2015 |
Who takes credit for this drop in susbsidy payments? Wailers over to you. Cc: Firefire God bless our President! 15 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by udemzyudex(m): 8:10am On Oct 05, 2015 |
Welcome development.......... Today is my birthday..... So I go do shakara. 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by Realdeals(m): 8:16am On Oct 05, 2015 |
It is a rouse that Nigeria consume 40 million litres of petrol daily. |
Re: Subsidy On Petrol Falls To N576m Daily by Nobody: 8:22am On Oct 05, 2015 |
This is even the ideal time to remove Subsidy. Crude at $48 means fuel should patapata be sold at 95 Naira . The Baba said there is nothing like Subsidy when he was in the struggle, but he still pays Subsidy after the struggle .... so we should ask him again, do you know what Subsidy is? Ode 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by obailala(m): 8:23am On Oct 05, 2015 |
GudluckIBB: Between June and October, world oil prices fell from $65 to $48/barrel, but Nigeria's subsidy bill dropped from N2billion to N575million daily within this period, i.e. World Oil prices fell by 26% but Nigeria's subsidy bill dropped by 71%. Now I think that is a major drop in the subsidy bill and no doubt, this is only due to a more prudent and responsible administration being in place. A little mathematics, at N575 million daily, that would equate to about N210billion annually. Not too long ago in 2011, Nigeria paid N2.13Trillion for the same subsidy and after all the protests and exposes, Nigeria paid approximately N1trillion per annum for the subsequent years. ...and with some of these things, some would still beat their chests and ask what the CHANGE is. May God forgive us! 42 Likes 1 Share |
Re: Subsidy On Petrol Falls To N576m Daily by boyo123(m): 8:27am On Oct 05, 2015 |
benpedro:or people are begining to trust them more 4 Likes |
Re: Subsidy On Petrol Falls To N576m Daily by Firefire(m): 8:27am On Oct 05, 2015 |
Beremx: Good morning. 1 Like |
Re: Subsidy On Petrol Falls To N576m Daily by Vikkie14: 8:28am On Oct 05, 2015 |
In summary: The Reduction in Subsidy payment is due to the Fall in Oil Price. Anything apart from this is Falsehood. 2 Likes 1 Share |
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