Nigeria may be losing the gains of increases in the international oil prices as the Federal Government subsidy on fuel has risen to N2.4 billion daily in May, from N774 million in March, 2018, also as a result of the high price of crude oil in the international market.

Unlike in March, this year, when the price of crude oil hovered at $66 per barrel, it had hovered between $75 and $80 per barrel since last month, thus pushing up landing cost of the refined product in the domestic markets for finished product importers like Nigeria.

In a report obtained by Vanguard, the Petroleum Products Pricing Regulatory Agency, PPPRA, stated that without the government subsidy, the price of petrol could have been as high as N205 per litre in the domestic market.

According to PPPRA, the price of the commodity appreciated by 8.47 per cent from N189 per litre recorded in April 25, 2018 to N205 per litre as at May 16, 2018.

The PPPRA report disclosed that during the week under reference, between May 11 and May 16, 2018, oil prices continued to soar, stating that the average price for Brent Dated was $77.92 per barrel; Nigeria’s Bonny Light was $78.08 while West Texas Intermediate, WTI, was $60.27 per barrel.

Price of petrol is still fixed at a maximum of N145 per litre, meaning that the NNPC is currently paying N60 as under recovery for a litre of the commodity.

Speaking with Vanguard on this issue, the Group General Manager, Group Public Affairs Division of the NNPC, Mr. Ndu Ughamadu said: “The explanation is simple. The higher the price of crude oil the higher the price of petroleum products in the international market. It should also be noted that this has also impacted on the landing cost, and by extension our under recovery.”

In a related development findings by Vanguard in Ogun state and other border communities showed that the situation is worsened by smuggling, as NNPC is now forced to subsidize the product for neighboring countries.

Group Managing Director of the NNPC, Dr Maikanti Baru who led top management team of the corporation to visit Comptroller-General of Nigeria Customs Service, Col. Hameed Ali (retd), recently, had blamed the increase in fuel consumption on massive smuggling of petroleum products to neighbouring countries.

Baru had also raised an alarm on the proliferation of fuel stations in communities with international land and coastal borders across the country, insisting that the development had energized unprecedented cross-border smuggling of petrol to neighbouring countries, making it difficult to sanitise the fuel supply and distribution matrix in the country.

He had revealed that detailed study conducted by the NNPC indicated strong correlation between the presence of the frontier stations and the activities of fuel smuggling syndicates.

Providing a detailed presentation of the findings, the NNPC boss had noted that 16 states, having among them 61 local government areas with border communities, account for 2,201 registered fuel stations.

He had said: “NNPC is concerned that continued cross-border smuggling of petrol will deny Nigerians the benefit of the Federal Government’s benevolence of keeping a fix retail price of N145 per litre, despite the increase in PMS open market price above N171 per litre.” Responding, Customs’ Comptroller-General had said the service would work with the NNPC to stem the tide of cross-border smuggling of petroleum products, noting that all hands must be on deck to ensure the economic survival of the country.

izzou:


GEJ must be the reason why this government hasn't removed subsidy entirely

BeingFrank:
Because GEJ Is Still The President Right? Who Did This To You?

Sarcasm did this to me.

Loosen up. The hardship reach my side sef

1StopRudeness:
Subsidy...??.do we still have this grammar in our Nigerian dictionary...

Shébi they said they've removed it..abi ....Is that not why we are buying fuel at 145/litre??

We have been scammed ooo??

fiizznation:
Damn I remembered how that man said removing subsidy will save up about $8bn in a year. Funny; I guess we are still enjoying the post subsidy level(147pl) the Jonathan administration promised us.


Kai Jonathan!!! Lol

You will think that Nigerians are smart, but if you look at the things that happened before their very eyes without them even knowing shit, that's when you will know that Nigerians are not that smart.

zombieHUNTER:
Did you know that Falana's request for FOI in the daily running of fuel subsidy in NNPC was rejected...

Baru and his 40 thieves said NNPC is not a public institution...

Do you know that northerners have always headed the NNPC most times even though they don't have any oil in the north... But no southerner has been made the FCT minister ever...

Do you know that Buhari has nothing to offer because he knows nothing about governance and how the economic policies works... He is just a figure head used by Fulani elements to milk the country dry...

The same youths who ought to salvage the country are the ones chanting sai baba like headless chickens because of religious sentiments and ethnic affiliation...

There is no hope for the country.... It's survival of the fittest ...

fiizznation:
Damn I remembered how that man said removing subsidy will save up about $8bn in a year. Funny; I guess we are still enjoying the post subsidy level(147pl) the Jonathan administration promised us.


Kai Jonathan!!! Lol

You will think that Nigerians are smart, but if you look at the things that happened before their very eyes without them even knowing shit, that's when you will know that Nigerians are not that smart.

izzou:


Sarcasm did this to me.

Loosen up. The hardship reach my side sef

Esseite:
GEJ... the closest we had to perfect...

Imagine at $74/b everyone is running around like headless chickens, but GEJ/okonjo controlled it at $100/b and holding dollar below N200, while we slept like babies..

Esseite:
GEJ... the closest we had to perfect...

Imagine at $74/b everyone is running around like headless chickens, but GEJ/okonjo controlled it at $100/b and holding dollar below N200, while we slept like babies..

fiizznation:
While only you slept like a baby please. Nigerians will still be buying fuel at N145pl or more even if Jonathan is still the president. Like those guys have already made their well calculated move to push the pump-price to around N200pl that's why they were so focused on the post subsidy level which they estimated PMS to be selling at around N150pl.

fiizznation:
Damn I remembered how that man said removing subsidy will save up about $8bn in a year. Funny; I guess we are still enjoying the post subsidy level(147pl) the Jonathan administration promised us.


Kai Jonathan!!! Lol

You will think that Nigerians are smart, but if you look at the things that happened before their very eyes without them even knowing shit, that's when you will know that Nigerians are not that smart.

GMBuhari:
16 years divided by 5 that's 3.1


PDP had the opportunity to build 3 MEGA refineries i mean twice the size of Dangote's refinery @Lekki free zone at 5 years completion period


PDP had the money to finance the project too , But the fraud they and their flocks enjoyed with subsidy scam was so much better than actually improving the situation of the country to them


5 years interval each and it would have been byebye subsidy for at least 20 more years , but then ...


Shipping crude outside is not free, refining it is not free , re-importing finished goods is not free either as a matter of fact these costs have increased exponentially , the only reason why the subsidy cost is being monitored is because some people are calculating how much they'd have gained if Buhari had given every tommy dick and harry the chance to import directly

izombie:
don't you have shame? Whatever reason people have for monitoring the subsidy payment is irrelevant. Question is, is the government paying that amount as subsidy? You talk about pdp not building any refinery in 16 years abi, now your master buhari has been in power for over 3 years but he hasn't even applied even a brush of paint to our existing refinery. Maybe he needs another 16 years. Face it mr zombie, buhari is a catastrophic failure

zombieHUNTER:


It's almost four years
But you will still see Jonathan's name in their post
Pushing blames upandan like the economic terrorist in Aso rock .... These ones can't be cured again

Jokerman:


Didn't Buhari remove subsidy??