Firm denies fuel subsidy existence

The Nigerian National Petroleum Corporation (NNPC) yesterday cried out over the increase in the landing cost of petrol. The state-run oil firm lamented that the cost has exceeded N171 per liter while the pump price remained regulated at the maximum of N145 per liter.

The last known landing cost of the product was N171 per liter which is an indication of N26 per liter under-recovery cost.

The prices of crude oil had recently risen to about $80 per barrel, which has a direct effect on the landing cost of petroleum products.

But in December last year when the price was $64.37 per barrel, the NNPC Group Managing Director, Dr. Maikanti Baru said the landing cost, which include product cost, insurance and freight was $620 per metric ton. He said the country’s daily consumption had risen above 50million liters per day too.

Meanwhile, its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who spoke with The Nation on phone, rejected the description of the payment of under-recovery as subsidy.

He said: “As you rightly pointed out in your question, once the prices of crude oil go up in the international market, it affects the prices of product in the international market.

“And equally it affects the landing cost. The gap has really widened but the real figures I don’t have here because I am not here in the office.”

But the spokesman later told this correspondent on phone that “it is only the PPPRA (Petroleum Product Pricing Regulatory Agency) that can give you the figure.”

Upon visit to the website of the PPPRA, the pricing template space was blank.

Asked to state why the space was blank, agency’s General Manager, Corporate Affairs, Mr. Agie Apollo, said management has directed the department to revive and update it on daily basis.

The PPPRA spokesman was reticent on the under-recovery cost of petrol. He however said: “The website is like almost as dead. In short, we need to upgrade and update it on daily basis. I just finished talking to the person who is in charge of the updating of the website.”

But according to Ughamadu, it is only the National Assembly that can appropriate subsidy. He explained that the NNPC has only said it is not recovering the full amount for the petrol it sells to the public.

“We have never said we are operating a regime of subsidy. Once you mention subsidy, it is only National Assembly that can appropriate for subsidy. What we have been saying is that we are operating a regime of under-recovery. In other words, we are not recovering the full amount we sell to the public.”

From all indication, the NNPC was evading the question by referring The Nation to the PPPRA since it is the sole importer of petrol and only it knows how much it spends on importation.

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http://thenationonlineng.net/nnpc-petrol-landing-cost-exceeds-n171-per-litre/

but when international prices went down, we didn't see landing cost go down. They better hold their peace. The silly policy makers only take time to explain when about to put the masses through hard times.

Thank God it's rainy season already. Enough thunder for all wicked leaders.

did global fuel price increase na bad market for Buhari, either increase price or increase subsidy

Who is the minister for petroleum?

U ppl can kip deceiving urselves and gullible Nigerians... Every sensible Nigerian knows d govt still pays subsidy even if dey want a new baptismal name of Under-recovery.. Some of us know d only thing holding dis govt back from increasing fuel price is d upcoming elections nxt year..

No refineries.

People will definitely go to jail over the shoddy manner of Buharis very corrupt subsidy regime

The idiot does not know the meaning of subsidy. They are using semantics to shield one of the most elaborate corrupt practices in the history of Nigeria.

In effect, the idiot is telling us that the NNPC has UNLIMITED budget to keep absorbing the extra cost of fuel importation without appropriation.

The question is:

1. Where does the NNPC get the money to fund this practice? Who is the owner of the money?

2. Which law authorised the NNPC to use that money to fund this practice?

3. Who will pay for the arrears of the under-recovered funds? Any interests? (since you shamelessly claim that this is not a subsidy regime)

Nbote:
U ppl can kip deceiving urselves and gullible Nigerians... Every sensible Nigerian knows d govt still pays subsidy even if dey want a new baptismal name of Under-recovery.. Some of us know d only thing holding dis govt back from increasing fuel price is d upcoming elections nxt year..

They are now leaving PPPRA website blank to prevent any form of scrutiny by Nigerians. Hope Nigerians are seeing how opaque NNPC has become under buhari's destructive govt.
By the time buhari's rudderless corrupt ridden govt is booted out in 2019, the world will be shocked at the waton corruption CURRENTLY GOING ON IN SECRET in NNPC with buhari as the minister of petroleum.

chuksjuve:
Who is the minister for petroleum?

The only saint in Nigeria by the name of buhari. He is so corruption free that his appointees in NNPC and PPPRA are leaving their website blank and avoiding questions from journalist.

We have never said we are operating a regime of subsidy. Once you mention subsidy, it is only National Assembly that can appropriate for subsidy

Despite the continuous payment of subsidy through the back door corruption seems to have a upper hand under the leadership of so called Mr integrity minister of petroleum when fuel price should have gone down.