The Federal Government’s savings as a result of the removal of subsidy on both petrol and kerosene are growing daily.

Between January 1 and February 12 this year, an interval of about six weeks, the Federal Government made over N18.3bn as savings from the removal of subsidy on Premium Motor Spirit and House Hold Kerosene.

The government officially stopped subsidy on PMS, popularly known as petrol, on January 1, 2016, while on January 23 this year, it also ended the subsidy regime on kerosene, according to the pricing templates for both commodities obtained from the Petroleum Products Pricing Regulatory Agency.

The PPPRA is the agency of the Federal Government that fixes and regulates the prices of the white products, PMS and HHK, as well as other refined petroleum products across the country.

It unveiled its revised PMS template on January 1, 2016 while that of HHK was posted on January 23, a development that showed that the Federal Government now makes extra cash daily from every litre of petrol and kerosene sold across the country.

The PPPRA occasionally updates the templates for both commodities to reflect fluctuations in the global prices of crude oil.

An analysis of the various updated templates so far released by the agency after they were revised showed that the Federal Government had raked in over N18.3bn in six weeks.

For instance, in the recent template for PMS, which was posted on the PPPRA website on February 12, the government made a cash recovery of N15.23 on every litre of petrol sold in the country.

On petrol alone, about six templates had been released by the regulatory agency, beginning with the one posted on January 1 this year, which confirmed the stoppage of petrol subsidy and showed an over recovery of N1.4 per litre of PMS.

Other templates were posted on January 11 and January 20, as well as on February 6 and February 11, while their over recoveries were N4.7, N7.49, N10.5, and N16.06 per litre, respectively.

Therefore, on the average, the over recovery for PMS since January 1 this year is N9.23 per litre.

According to the Nigerian National Petroleum Corporation, about 40 million litres of petrol are being consumed daily in the country.

When multiplied by the average over recovery on the product and the number of days (January 1 to February 12), the result shows that the government must have made extra cash of N15.88bn from the sale of petrol alone since the halt of subsidy on the commodity.

In the case of kerosene, findings by our correspondent showed that an average over recovery of N10.25 was made by the Federal Government on every litre of HHK sold since January 23, when subsidy was officially removed on the product.

So far, about four updated templates have been posted by the PPPRA for kerosene. They were posted on January 23, January 30, February 11 and February 12, 2016, while their over recoveries per litre were N10.72, N6.3, N12.51 and N11.47, respectively.

According to the Pipelines and Product Marketing Company, a subsidiary of the NNPC, Nigeria consumes about 11 million litres of kerosene daily.

By multiplying the average over recovery on HHK with the volume consumed daily, it shows that about N2.4bn has been saved by the government since subsidy on kerosene was officially removed on January 23 this year.

The NNPC is the major importer of kerosene in the country, as most marketers have yet to venture into the business due to the fact that the HHK market was only deregulated recently by the government.

The summation of the amounts saved on both PMS and HHK shows that the Federal Government must have recovered over N18.3bn on the products since they were officially deregulated.

On how an over recovery is arrived at, taking a look at the recent template posted on February 12, the PPPRA stated that the Expected Open Market Price for PMS was N71.27 per litre, whereas the retail price was N86.50 per litre in non-NNPC filling stations.

Petrol price is N86 per litre at fillings stations run by the NNPC.

While the EOMP is the actual cost of the commodity, the difference between it and the retail price as sold at filling stations is the over or under recovery. But since the halt in subsidy payment, the government has been making over recoveries on both PMS and HHK.

The EOMP is the summation of the landing cost of the commodity and the subtotal margins like bridging fund, transporters’ cost, dealers’ charge, admin charge etc.

The February 12 PMS template puts the commodity’s price plus freight cost per litre at N52.11; lightering expenses, N2.02; Nigerian Ports Authority fee, N0.36; jetty throughput charge, N0.6; and storage charge, N2.

Others under the distribution margins are retailers’ cost, N5; transporters’ charge, N3.05; dealers’ fee, N1.95; bridging fund, N4; marine transport average, N0.15; and admin ch

arge, N0.15.

When summed up, an EOMP of about N71.27 was obtained, in contrast to a retail price of N86.5, leaving an over recovery of N15.23.

Officials at the PPPRA as well as those at the NNPC explained to our correspondent that the over recoveries from both PMS and HHK would be saved by the government and used to fund future subsidies if the need arose.

When asked to speak on the extra amount being paid by consumers for the commodities, the Group General Manager, Corporate Planning and Strategy, NNPC, Mr. Bello Rabiu, told our correspondent that the negative subsidy would be remitted to the Petroleum Support Fund in line with the PPPRA guidelines.

“The savings under such a regime could be domiciled in the PSF as a buffer to fund future subsidies (if any) that may arise during high oil price regime or invested by the industry in supply and distribution efficiency improvement projects such as the decongestion of the Apapa area, Single Point Monitoring in Port Harcourt and Warri, complimentary rail services, inland waterways, etc,” he said.

Source: http://www.punchng.com/subsidy-removal-fg-saves-n18-3bn-in-six-weeks/

The different is clear

Let this money be channelled into the revival of our refineries.

If it's not 'the kind of e-billions' that have been kissing our screens of recent.

ok

Baawaa:
The different is clear

I wonder what would have become of Nigeria if that hat-capped and ineffectual-B had continued as our president. Corruption associated with subsidy is monumental!



Jonathan for kuje prison!

No time! We need projects on ground!

Ambode I hail! I see you. Thanks for lighting up my area

And the money will b used for

Same old shiiit just a diff regime

hypocrisy is when u protest in Lagos and Kano over fuel subsidy removal under GEJ and don't under PMB.

emerged01:
No time! We need projects on ground!

Ambode I hail! I see you. Thanks for lighting up my area

Without a budget, nothing can happen in terms of projects and with the way the budget madness is going, it will take some time (hopefully not).

As for Ambode, he has shown he is up to the task and he should not slow down yet. He needs to push on with the capital projects(in terms of roads, building etc.) before the rains come and when the rains come, we can focus on other things

Caseless:
'children of hate aka wailers, what say you?'

we can only hear it in other to applause them..



but them wouldn't alert us with appropriate channel(s) to which it is or will be spent......


Nigeria is a failed state with barbaric questionable characters n activities

I hope the money saved will be used to effect change in the lives of nigerians, not like what Jonathan did and impoverish nigerians, all in the name of transformation.

#AmNot2015SocialMediaActivists. The damages they have done to this country is not a thing to correct in 30years. WE SHOULD BE PATIENT!!! Thank God! We few honest leaders in charge.....

We should just be patient for the new adminstration.They have to take there time to study and know problems of each sector. The government should stop all this fire brigade approach. Better we should device 'bottom-top approch' not 'top- middle&go away'

Caseless:
'children of hate aka wailers, what say you?'

they aint saving they r gaining n ripping nigerians of their monies.
going by the current price of crude, petrol or fuel shud be selling below 40nairaperlitre.

so dont masturbate yet, it isnt yet uhuru.
also d money they r saving is it in a xurrent account or fixed account which shud yield profits for nigerians?

lawydewy:


#AmNot2015SocialMediaActivists.
The damages they have done to this country is not a thing
to correct in 30years. WE SHOULD BE PATIENT!!!
Thank God! We few honest leaders in charge.....


We should just be patient for the new adminstration.They
have to take there time to study and know problems of
each sector.
The government should stop all this fire brigade approach.
Better we should device 'bottom-top approch' not 'top-
middle&go away'

did u read abt boro, the special adviser to bubu on amnesty?
if no, pls go n read the corruption happening thr n ur mr integrity is doing nothing.

poiZon:




did u read abt boro, the special adviser to bubu on amnesty?
if no, pls go n read the corruption happening thr n ur mr integrity is doing nothing.

I believe you will be among those that will critise Buhari if he sacks Boro.(He hates south)

Boro is from where? (South south) I believe they will investigate the issue.

If that allegation is true! imagine they truth you with a position not up to year, the south south man is being accuse of corruption. If Buhari should appoint his loyalist from the North now, you people will start ranting marginalisation!!!!!!!!!!!

An average nigerian is not satisfy with his FATHER or his skin!

Why my father is average/poor?

why am not oyibo/ why God no create me put for america!?

#AmNot2015SocialMediaActivists!

Meet good elders to teach the 'in and out' of Nigeria.

klassicview:
hypocrisy is when u protest in Lagos and Kano over fuel subsidy removal under GEJ and don't under PMB.

How much was a barrel of oil then and how much is it now?

Besides whoever stopped u from starting ur own protest now?

This money should be channeled on revamping Education in this country. Subsidy has been an avenue for[color=#006600][/color] office holders in looting our money especially NNPC as an institution, so corrupt.

Caseless:
'children of hate aka wailers, what say you?'

SAVING MONEY AND YET THEY INCREASED ELECTRICITY TARRIFS. WHO THEM THEY SAVE THE MONEY FOR?

lawydewy:


I believe you will be among those that will critise Buhari if he sacks Boro.(He hates south)

Boro is from where? (South south) I believe they will investigate the issue.

If that allegation is true! imagine they truth you with a position not up to year, the south south man is being accuse of corruption. If Buhari should appoint his loyalist from the North now, you people will start ranting marginalisation!!!!!!!!!!!

An average nigerian is not satisfy with his FATHER or his skin!

Why my father is average/poor?

why am not oyibo/ why God no create me put for america!?

#AmNot2015SocialMediaActivists!

Meet good elders to teach the 'in and out' of Nigeria.

will my critics change a tyrant or someone who sees only a region as being competent?
boro is corrupt n it is under buhari, so he shud sack him period.
whether critics will criticise or lament is not the matter here.

It is a good news

How much 9ja dey make every day wen buldoghari say we broke

The same subsidy Jonathan wanted to remove & hell was let loose ,,,,,,,
. So labour no longer kicking against subsidy tht they used to do during other previous regime.,,,,
. Is tht why apc e-rat are making noise ,when crude is selling as low ad below $30 & u are buying @ a rate higher than what is obtainable even in developed countries tht ur currency is shrinking to..
u ppl haven't seen notn yet,until crude prices will go high b4 u will know wat u ppl did by not wailing when the subsidy was removed..
pls remind the cow from duara tht u call ur president tht the hardship is becoming unbearable coz its itching..
he has plunged Nigeria into economic recession & oshiomole,amaechi,co,.,,should be held responsible for our woes now coz they are the ones tht sued previous govt. to court to share the ECA money tht the govt. wanted to save for rainy days,,,am surprised those ppl are still in this present govt.

poiZon:





will my critics change a tyrant or someone who sees only a region as being competent?
boro is corrupt n it is under buhari, so he shud sack him period.
whether critics will criticise or lament is not the matter here.

Put your in this type of situation! No investigation and fear hearing.

Sack direct! will you be happy?

Allegation demands investigation.
We know people like you! BY THEIR FRUIT, WE SHALL KNOW THEM.

You called Buhari tyrant! You are asking him to commit the tyrant offence just to satisfy you or yuor uncle looking for post.............

Achuwa1:
The same subsidy Jonathan wanted to remove & hell was let loose ,,,,,,,
. So labour no longer kicking against subsidy tht they used to do during other previous regime.,,,,
. Is tht why apc e-rat are making noise ,when crude is selling as low ad below $30 & u are buying @ a rate higher than what is obtainable even in developed countries tht ur currency is shrinking to..
u ppl haven't seen notn yet,until crude prices will go high b4 u will know wat u ppl did by not wailing when the subsidy was removed..
pls remind the cow from duara tht u call ur president tht the hardship is becoming unbearable coz its itching..
he has plunged Nigeria into economic recession & oshiomole,amaechi,co,.,,should be held responsible for our woes now coz they are the ones tht sued previous govt. to court to share the ECA money tht the govt. wanted to save for rainy days,,,am surprised those ppl are still in this present govt.

It has been proven that it was not safe in the hands of Jonathan..


Where is SURE-P today?

lawydewy:


Put your in this type of situation! No investigation and fear hearing.

Sack direct! will you be happy?

Allegation demands investigation.
We know people like you! BY THEIR FRUIT, WE SHALL KNOW THEM.

You called Buhari tyrant! You are asking him to commit the tyrant offence just to satisfy you or yuor uncle looking for post.............

investigation, who does dat in nigeria?
did apc allowed gej do any invedtigation on stella oduah case?
dd man said he didnt buy cars worth 60million but it was 56 million, abeg wat is d difference.
his suv bullet proof is worth 50million naira, he spent 3.1million to prepare students for jamb less than 2weeks to d exams. did he corroborate the issues levied against him or not?

Many graduate was to be employed thru SURE-P b4 a court case against sure-p came up & it was halted...
. So u don't blame previous govt. for the woes we are facing today,but blame the present leadership coz he lacks gud economic team...
what does it take him to set up an economic team in the country to see how they can save us from dis economic woes & make recommendation on what the govt.should do.
pmb dictatorial lifestyle & illiteracy is what has plung us to where we are today..

poiZon:




investigation, who does dat in nigeria?
did apc allowed gej do any invedtigation on stella oduah case?
dd man said he didnt buy cars worth 60million but it was 56 million, abeg wat is d difference.
his suv bullet proof is worth 50million naira, he spent 3.1million to prepare students for jamb less than 2weeks to d exams. did he corroborate the issues levied against him or not?

#AmNot2015SocialMediaActivists.

Yorubas

lawydewy:



It has been proven that it was not safe in the hands Jonathan..


Where is SURE-P today?

You are a hypocrite and a slave to your own bigotry and hatred

Dont be deceived shishi is not being saved

spend money stop saving