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Nairaland Forum / Nairaland / General / Politics / FG Resumes Payment Of Petrol Subsidy (737 Views)
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FG Resumes Payment Of Petrol Subsidy by naijasolidng(f): 10:04am On May 03, 2016 |
The Federal Government has said it would pay subsidy on
Premium Motor Spirit (PMS) from the recoveries made in the
first quarter of 2016.
This was contained in the latest Petroleum Product Pricing
Regulatory Agency (PPPRA) template released in Abuja
yesterday.
It said between January and March, the federal government
was
able to save about N10 billion as a result of selling the
product
above the expected open market price.
According to the new template, the expected open market
price
of the PMS had risen to N99.38 per litre for independent and
major oil marketers and N98.62 per litre for NNPC retail
outlets.
It added that the expected open market price was the actual
price of the product without subsidy and it was based on
the
current exchange rate of N197 to a dollar.
It further said, at the current price of N86 per litre at NNPC
retail outlets, the federal government was paying N12.62
per
litre as subsidy on the product and N12.88 per litre as
subsidy
for other oil marketers’ price of N86.50.
A breakdown of the template revealed that for NNPC retail
outlets and independent and major oil marketers, the landing
cost of PMS imported into the country was N84.32 and
N85.08
per litre, respectively.
It stated that the distribution margin, which include retailers,
transportation, bridging fund and dealers margin among
others,
stood at N14.30 for both the NNPC and other marketers.
According to the statement, this brings the current expected
open market price to N98.62 and N99.38 for NNPC retail
outlets and other marketers, respectively.
Prior to his election, President Muhammadu Buhari , had
announced that he had nothing to do with subsidy.
This position was further reinforced by his administration
when
it announced last December that it was scrapping the
Petroleum
Support Fund, also known as fuel subsidy.
Speaking to journalists at the Port Harcourt refinery where
he
had spent Christmas inspecting the facility, the Minister of
State for Petroleum, Ibe Kachikwu, said the government
could
no longer pay the subsidy due to the fraud tainting the
scheme.
Kachikwu, who is also the Group Managing director of the
Nigerian National Petroleum Corporation (NNPC), also added
that government could no longer afford the payment due to
the
dip in its revenue, caused by the drop in crude oil prices.
He said a new pricing template he signed off effectively
removed the payment of subsidy on petrol and that oil
marketers would be informed of the development in the
coming
days.
“So for the first time, people will understand that the pricing
modulation I was talking about is not a gimmick. It is for
real.
We have gone to find out how we will be able to fluctuate
this
market to reflect what the reality of the crude market is. The
objective is that one, we cannot afford to continue to
subsidise.
“We can’t even understand where those subsidies were
going
to. There are a lot of fraud elements in it so we need to cut
that
off. http://solidvevo.com/2016/05/03/fg-resumes-payment-petrol-subsidy/
|
Re: FG Resumes Payment Of Petrol Subsidy by allawizzow(m): 10:11am On May 03, 2016 |
Re: FG Resumes Payment Of Petrol Subsidy by Massdamm(m): 10:12am On May 03, 2016 |
Sai baba more grace to ur elbow |
Re: FG Resumes Payment Of Petrol Subsidy by chinelo207: 10:35am On May 03, 2016 |
See as them dey talk from two sides of the mouth anyhow. this plot is booked. GBA! |
Re: FG Resumes Payment Of Petrol Subsidy by ephemm(m): 10:38am On May 03, 2016 |
We lack saving culture in the country, in times of plenty, we must save. When the PPPRA template was favourable, what was done with the excess? As the price of crude oil is increasing, I know some governors will start asking FG to share the excesses, let's cultivate the habit of saving, we won't be faced by these problems. |
Re: FG Resumes Payment Of Petrol Subsidy by Ratello: 10:42am On May 03, 2016 |
I don laff too much here.......I thought the worthless, shameless APC family said SUBSIDY is a FRAUD now I can see another LIES being busted. Indeed, APC has no remedy to Nigeria's myriad of economic woes....very useless and lying government. 1 Like |
Re: FG Resumes Payment Of Petrol Subsidy by TANTUMERGO007(m): 10:43am On May 03, 2016 |
zombies no get sense at all |
Re: FG Resumes Payment Of Petrol Subsidy by nnachukz(m): 10:49am On May 03, 2016 |
The Dullard once again bites his tongue while talking what he knows nothing about. Subsidy is a scam to enrich few and impoverish the masses....Before election. We will resume the payment of subsidy...After election. Zombies are still dancing to the uncoordinated confusing tune of their master. 1 Like |
Re: FG Resumes Payment Of Petrol Subsidy by Cocoyamu: 12:26pm On May 03, 2016 |
I remember this ruling party (the APC) once claimed Subsidy is a scam. Does this mean they are paying scam?? The double standard of this Administration is epic, i cant even understand one bit.... I WAIL..... seriously. |
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