he Federal Government is still spending about N1.81bn daily to subsidise the Premium Motor Spirit, otherwise called petrol, notwithstanding the nationwide scarcity of the product.

Latest figures from the Petroleum Products Pricing Regulatory Agency show that the government is paying N45.28 as subsidy for every litre of petrol consumed in Nigeria.

Specifically, the agency, in its pricing template released on May 21, 2015, based on prices for May 20, 2015, stated that the Expected Open Market price or total cost for petrol was N132.28 per litre.

This was against a retail regulated price of N87 per litre. The difference between the EOMP and the retail price is therefore N45.28.

According to the Nigerian National Petroleum Corporation, Nigeria consumes about 40 million litres of the PMS daily.

Multiplying the amount of fuel consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N1.81bn on subsidy daily, provided the N45.28 per litre subsidy figure persists.

The PPPRA stated that the effective date of the approved pricing template was January 19, 2015, noting that the actual landing cost of the product was N116.79 per litre.

The cost elements that make up the landing cost include the product’s offshore cost, N104.87; trade margin, N1.47; lightering expenses, N4.19; NPA, N0.77; financing, N1.68; jetty depot throughput charge, N0.8; and storage charge, N3.

On the cost of the product’s distribution margin, according to the agency, 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 N116.79, an EOMP of N132.28 per litre is arrived at. But this is subsidised and a flat official rate of N87 per litre is given.

Meanwhile, many independent marketers hardly sell at the regulated N87 price since the latest scarcity of petrol started.

Aside from the NNPC petrol stations and some outlets belonging to major oil marketers such as Conoil, Total, Mobil, Oando, Forte Oil, most other filling stations sell the product above the regulated price despite the fact that the subsidy by the Federal Government is still in place.

The scarcity of fuel has continued throughout the country.

http://www.punchng.com/business/despite-scarcity-daily-subsidy-on-petrol-hits-n1-81bn/

we all knew this subsidy palava is bullshiit

May God help Nigeria

Buhari's govt should better do what they refused to let Jonathan's govt do. Remove the fuel subsidy and let us all feel the pain of buying at the normal price. The rich pple buy fuel in bulk which makes it pay them but we that buy 2ltr 10ltr we are always let with a token as little as 50naira or less. Remove the subsidy #babaonechance when you assume office. And make Nigeria a country that does not favour the rich alone. I noticed your party does that, all Apc lead states favour mostly the rich and costs the poor their hard earned fortunes.

When we said fuel subsidy should be completely removed you guys occupied Nigeria protesting like maniacs.Now the fuel subsidy is still being paid with no effective result especially in the sophiscated region that made the most noise

Ezenwammadu:
When we said fuel subsidy should be completely removed you guys occupied Nigeria protesting like maniacs.Now the fuel subsidy is still being paid with no effective result especially in the sophiscated region that made the most noise

Abi ooo my broda

You can never satisfy Nigerians. When Jonathan, Minister of Petroleum and minister of Finance wanted to remove fuel subsidy, most people including APC attacked them and called them all sorts of names. Now you guys are seeing the after effect of non-removal of subsidy and you are still complaining and calling them names.

What do Nigerians really want!!!

last minute looting...God will c us(patience)

And they expect us to believe dis piece of shiit?

Tinz dey hapun oo

haba

Walahi.... Them don loot Nigeria finish

Nigeria has got to be one of the most complex nation in the world. Simple things are made to look complicated while the complex ones look elementary.

subsidy na scam

Most happenings in Nigeria seems to defeat simple rules of logic. More like the more you see the less you understand.

I can now understand how those foreign experts that came to help rescue the chibok girls silently walked away after all the initial paparazzi of using updated technology.

.

Ds thing z really serious oo.learnt some dept in unilorin r postponing d exam schedule to start tomorrow cos no fuel to power d CBT room for d exams. Even my power bank wey wan pafuka, na so one thief carry am for wr I dey charge.

.

Thank God for fuel scarcity I wouldn't have made front page. I guess most nairalanders are down due to power outage.

JONADOOMED

It is no longer fuel subsidy, it is now fraud subsidy.

Are the marketers also to be blamed for the subsidy even in d face of non availability of the product?

They keep mentioning cabals,
Who claims front seat in NOI and GEJ's programmes other than Otedolar, and co?

Both ppl in govt side and marketers are partners in dis scheme.

Honestly Nigerians are too Greedy,you can Imagine how a few men have held our country to a Standstill just to Blackmail the Government into Paying them a Huge sum.Who are we Deceiving,is it not ourselves?

6ty6ix:
.

i no go comment again...
Make i just like ur pix

When Baba said Subsidy is a daylight scam, some TANoids were screaming like an horn.y mosquito, hope those useless TANoids got 24hrs electricity and fuel at their backyard.... awon oponu

all this wouldn't have been possible if we had a working refinery, or a government that thought about making our refinery work properly. shit

For me to mk FP means say People seff no see ba3 comment again..





Did i hear sumn say God bless Nigeria


Gone are those days whn Oshiomole will lead protest now he is at home enjoying Lara...

Hmmm well I still dnt support fuel subsidy removal

I expect to even buy fuel a lot cheaper than 87naira in d coming days

Shebi Buhari said he will give us fuel at 40naira per litre we r counting days to his tenure nw

Bonapart:
i no go comment again... Make i just like ur pix

tank u jaree

Thunda fire GEJ, fire NGI, fIre diezeanI