The marginal rise in the price of crude oil in the international market has led to an increase in the actual cost or Expected Open Market Price of the Premium Motor Spirit, popularly called petrol, in Nigeria.Specifically, the EOMP or true cost of petrol as of Thursday, according to figures from the official pricing template of the Petroleum Products Pricing Regulatory Agency, was N96.31 per litre.But the official retail price of the product at filling stations is N86.5 per litre, leaving out an under-recovery or difference of N10.31, which is being catered for by the government through its previous savings or over-recovery made on the product.Should the government exhaust its savings (over-recovery) to offset the difference in the petrol price as currently being experienced, it was gathered that the PPPRA would have to adjust the template to reflect the actual market cost of the product. And by implications, consumers may have to pay more for petrol.Various pricing templates of the PPPRA, before last Thursday’s, had shown the government’s over-recovery on the PMS during periods of low crude oil price.However, as the international price of crude begins to appreciate, the government is already experiencing under-recovery on the PMS, as shown by the PPPRA templates.The PPPRA is the agency of the Federal Government that regulates the prices of white products – petrol and kerosene, across the country.Earlier in the year, the crude oil price hovered around $40 per barrel. But recently, it started to appreciate as data from the Nigerian National Petroleum Corporation showed that as of April 8, 2016, the price of Brent Crude was $44.69 per barrel.The marginal rise in price of Nigeria’s Brent Crude resulted in a commensurate increase in the EOMP or actual cost of petrol.As of April 14, the PPPRA, in its template, put the landing cost of petrol at N82.51 per litre, while the sub-total margins such as the retailers charge, transporters cost, dealers fee and admin charge were pegged at N14.30 per litre.The summation of the landing cost and the sub-total margins refer to the EOMP, which was N96.31, at the period under review.But the Federal Government, through its modulation mechanism, is subsidising the commodity by N10.31, which is why consumers pay N86.5 per litre for petrol at filling stations, particularly those run by major and independent oil marketers.As stakeholders in the sector wondered if the subsidy regime had been returned, the government specifically stated that it had not re-introduced the era of petrol subsidy payment to oil marketers.It had argued that it was effecting a price modulation mechanism

http://www.punchng.com/fg-subsidises-petrol-by-n10-31-per-litre/

Well that's a good one.

chriskosherbal:
Well that's a good one.

Actually it seems petrol is going to be 97/litre


Officially that is

Not sure yet have to read again

Buhari said Subsidy is a scam. How come he is paying for subsidy.

Yorubas good morning.

You guys have been scammed by an illiterate(Buhari) through a thief (Tinubu)

We were told no subsidy, where cometh this N10.31? Even the first class folks have been outscammed by propagandists

ffg

APC = A people of Confusion.

Even with this subsidy,fuel is above #200 in Ibadan

The greatest problem of this government is the lies they told on their way to Aso Rock. As it stands now, they dont know how to undo what they did when they were in oposition.
They said subsidy was a scam when crude oil was sold at $100 per barel. Now with just about 5 additional dollars to a barrel, they have anounced about #10 subsidy. What this means is, when and if crude oil price goes as high as $70 Nigeria will be paying over #50 as subsidy per litre.

This is just too bad for Nigeria. APC is just messing with Nigeria. I believe PMB does not know much about what really happens and didnt also have enough “brain“ to reach out for good brains to help him walk to Nigeria. He also because of etinicity and partisan politicking picked wrong people to man wrong places making governance for him too hard and also bringing lots of hardship to Nigerians.
Too bad!!!

.

Even still, we are not yet feeling this government.

So As village pastor lie 4 us..... Him say dem NO go do subsidy...... AM ASHAMED TO CALL DIS GOVT A GOVT.

Subsidy is not captured in the budget, so where is money for the subsidy coming from?

firstly does buhari know d meaning I mean dictionary meaning of subsidy?
if no then he needs to go back to school. atleast subsidy is being taught in elementary agricultural science.

Who is subsidizing who??.... Who is subsidizing who??.... ........

Anytime I remember who talk this thing, I wish to use Thor hammer break him gorimapa head...

By the time Brent crude get to $70/barrel, the subsidy on petrol will get to #100.
Ask me what APC government will achieve after payment of above #1trillion in less than one year for fuel subsidy.

This thing is simple arithmetic which Bubu won't understand. The higher the crude price, the higher the subsidy. But at #190 per litre of petrol in Onitsha here, I wonder what will happen when crude price will crawl above $50 and dollar rate at #310.

Watching in 5HD

Like play like play........

henryutd:
By the time Brent crude get to $70/barrel, the subsidy on petrol will get to #100.
Ask me what APC government will achieve after payment of above #1trillion in less than one year for fuel subsidy.

This thing is simple arithmetic which Bubu won't understand. The higher the crude price, the higher the subsidy. But at #190 per litre of petrol in Onitsha here, I wonder what will happen when crude price will crawl above $50 and dollar rate at #310.

Watching in 5HD

It is #220 at Ibadan....Last week subsidy was #9

Nigerians love lie,we will still be back to pre Jan 2012, I hope Abiola garden will contain all occupiers, God bless Nigeria.

Where will the money for the invisible subsidy (according to Buhari) come from