The template, which was released monday by the PPPRA in Abuja, indicates that the gradual rise in subsidy paid to oil marketers for bringing products into Nigeria was necessitated by the recent increase in crude oil price to about $47 a barrel.

This means that for every litre of petrol consumed by Nigerians, the federal government would pay subsidy of N12.88 to the independent markets, while the Nigerian National Petroleum Corporation (NNPC) gets N12.62 for selling below the expected open market price.

The revelation of the federal government’s increment in petrol subsidy coincided with the declaration by Vice-President Yemi Osinbajo in Ibadan, the capital of Oyo State, that the administration plans to boost electricity supply to 7,000 megawatts (MW) within the next 18 months.

The vice-president, who also assured Nigerians that the implementation of the 2016 Budget would begin in a matter of days, said in spite of the challenges being faced, the federal government was determined to boost power supply and light up the country.

According to the updated PPPRA template, which is expected to cover the second quarter of 2016, the expected open market price of petrol had risen to N99.38 per litre for independent and major oil marketers and N98.62 per litre for retail outlets belonging to the NNPC.

The PPPRA stated that the expected open market price was the actual price of the product without subsidy and that it was based on the current exchange rate of N197 to a dollar. It said that at the current price of N86 per litre at NNPC retail outlets, the federal government was paying N12.62 per litre as subsidy on the product and N12.88 per litre as subsidy for other oil marketers’ price of N86.50.

A breakdown of the template revealed that for NNPC retail outlets and independent and major oil marketers, the landing cost of petrol imported into the country was N84.32 and N85.08 per litre respectively, it stated that the distribution margin, which includes retailers, transportation, bridging fund and dealers’ margin among others, stood at N14.30 for both the NNPC and other marketers.

According to the statement, this brings the current expected open market price to N98.62 and N99.38 for NNPC retail outlets and other marketers respectively.

In Ibadan, Vice-President Osinbajo said the federal government planned to generate 7,000MW of electricity for the nation within the next 18 months.

The vice-president spoke at the presentation of a book: “Nigeria: The Challenges of Growth and Development, an In-Depth Analysis by Experts,” held at the Trenchard Hall, University of Ibadan (UI), Ibadan.

Osinbajo stated that power remains a major challenge the federal government has been facing, and which the government was determined to solve.

He said the most important part of the budget would focus on ensuring that the weak aspect of the power value chain was restored.

Osinbajo said that the nation was facing the problem of conveying gas to the power plants, adding that the pipeline, which remained the easiest method, was frequently being vandalised.

He said: “Early in the life of this administration late last year and early this year, power generation was possibly at its best. Nigeria, for the first time was actually generating 5,000 megawatts, which was the first time it will happen in the history of the country.

“On February 14, the Forcados Export Terminal was blown off, effectively ensuring that 40 per cent of our gas that goes for power is no longer used for the purpose.

“This situation led to the immediate loss of 1,500 megawatts of power. It is our priority that the pipeline project is completed so that gas will be adequately supplied to the power plant.”

Osinbajo said Buhari had two weeks ago ordered the mobilisation of the military to protect pipelines in the country.
The vice-president also said that the federal government would, within a few days, begin the implementation of the 2016 budget, which he described as the most ambitious in the history of the nation.

According to him, the budget is not only ambitious in size but also more in its broad range of fiscal policies. “Our strategic implementation plan proposes 33 action points. The action points cut across six political tiers of security, governance, economic diversification, power, road and rail, oil and gas, ease of investments and social investment,” he said.
Osinbajo said that for the first time in three years, the nation would have 30 per cent of the budget going for capital expenditure, a percentage that was three times higher than the last budget.

He said that the capital expenditure would take care of several aspects of infrastructure, particularly rail, road and power.
According to him, the rail link between Lagos and Kano as well as the one between Lagos and Calabar would be captured.

http://www.thisdaylive.com/index.php/2016/05/03/fg-subsidy-on-petrol-increases-says-pppra/

1. I Don't Know What Fuel Subsidy Means- Buhari, 24th May 2015

2. Fuel Subsidy Is A Sheer Fraud & Corruption- Buhari 23rd July 2015

3. Buhari Seeks Approval To Pay N413bn Subsidy Claims- 17th November 2015

4. Buhary Removes Fuel Subsidy, Says Petrol To Sell For N85 Per Litre- 25th Dec. 2015

5. FG Returns Petrol Subsidy, Retains Official Pump Price- 2nd April 2016


And someone who doesn't have sense of his/her own will come here & say I should believe in a man with a NOMADIC sense.

That same person will still come & tell me to believe in a man that has been lying front, back, left, right & centre. WOO TO THAT ZOMBIE

But the dullard once said there's nothing like subsidy. Why is he now paying it??... A zombie should answer me please.

A confused nation and government. Today we hear no subsidy and government saved billions, tomorrow we hear government pays for subsidy.

I thought the minister of state (petroleum) said our refineries are working and producing millions of litres daily.

This government has to come out clean and communicate effectively with the masses. Not lie and counter lie.

I just tire, very soon person go turn wailer.

We are in trouble in Nigeria. Lies in the morning, lies in the afternoon and lies in the night. Chei!