A week after the Federal Government announced the reduction of the pump price of petrol, subsidy on the product has increased to N3.64 from the N2.84 stated on January 16, 2015, statistics obtained from the Petroleum Products Pricing Regulatory Agency have shown.

The PPPRA, whose website is now wearing a new look after going off for four days, has changed the format of the pricing template, with little details given when our correspondent checked on Monday. Before the change, the agency used a template that gave more details, including the cost and freight component of the product, and distribution margins, among others.

According to the latest petrol pricing template, the Expected Open Market Price of Premium Motor Spirit, otherwise called petrol, is N90.64 per litre as of January 23, up from N89.8 on January 16.

This means that N3.64 is the subsidy cost that the government is picking up on every litre of the product as consumers are buying it at the regulated price of N87 per litre.

The landing cost was put at N75.15 per litre, up from N74.35 recorded on January 16. The agency, however, did not disclose what led to the increase in the landing cost.

The landing cost is the sum of the product cost, freight fees, trader’s margin, lightering expenses, Nigerian Ports Authority fees, financing cost, jetty depot thoughput charge, and storage charge. But none of these was stated in the new template.

The addition of the distribution margins to the landing cost gives the total cost (EOMP). The distribution margins, which comprise retailers, transporters and dealers’ profits, as well as bridging fund, marine transport average and admin charges, were also not stated.

The Federal Government had on Sunday, 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.

The Director, Emerald Energy Institute, University of Port Harcourt and Professor Emeritus, LSU Center for Energy Studies, USA, Wumi Iledare, in an emailed response to questions from our correspondent, said, “The basis for N87 per litre price seems to me a political expediency decision rather than economics. Certainly, politics often trumps economic analysis.

“If I were advising the government, I would have used this opportunity to recommend a complete removal of subsidy immediately and allow export parity pricing mechanism to stand
http://www.punchng.com/business/business-economy/petrol-subsidy-rises-to-n3-64-per-litre/

This people are demonic thieves !They must answer the following questions:
1)How did landing cost increase at a time prices in the international market has decreased by more than 50%
2)Why did subsidy increase from 2.84 before January 16 2015 to 3.84 presently after we had a 10 naira decrease from N97 to N87 within a week
This people are shameless scammers and the hottest place in hell is reserved for them. Nigeria is the only country in the world were oil prices fall more than 50% and yet subsidy increases as well as the landing cost.
This is barefaced robbery and is an insult to all Nigerians never have I seen theft so brazen and open.
Goodluck Jonathan must go this corruption is unacceptabl,we urgently need Mohammed Buhari, these subsidy scammers can't be allowed to keep swindling the nation .

After now, GEJ will be talking about cabals

Gej kirikiri waiting?

sherrylo:
Gej kirikiri waiting?

A VIP cell will be specially made for him by Buhari. He's taking this "stealing is not corruption" mantra to another level.

dharyour93:
After now, GEJ will be talking about cabals

The cabal ends MAY 29 when Buhari takes over.

PPPRA just removed the pricing template from their website as soon as Punch published the story. These thieves will do anything and go through any length to cover-up their corruption. Yet Goodluck Jonathan with his "technology" to fight corruption will not catch this.
http://pppra.gov.ng/category/pricing-templates/

Satan in charge there

dharyour93:
After now, GEJ will be talking about cabals

PDP is the cabal.

otokx:


PDP is the cabal.

Cabal that must be removed

Well stealing is not corruption!