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Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises - Politics - Nairaland

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NNPC Spends N1bn Daily, Petrol Subsidy Hits N19.37/Litre / Buhari Votes N305bn For Petrol Subsidy In N8.83tn 2019 Budget / FG Petrol Subsidy Now N26 Per Liter (2) (3) (4)

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Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by zakim(m): 6:35am On Jan 08
…workers, contractors risk delayed pay

Lower amounts of revenue might be available for sharing by the three tiers of government through the Federation Accounts Allocation Committee (FAAC) in the coming months as the cost borne by the Nigerian National Petroleum Corporation (NNPC) to subsidise petrol has increased by about N17 per litre, Daily Trust reports. Subsidy on Premium Motor Spirit (PMS), otherwise called petrol, rose to N38 per litre on Monday, according to figures obtained from the Petroleum Products Pricing Regulatory Agency (PPPRA). Subsidy or technically, under-recovery, averaged N21 per litre in December 2019, the data showed.

The latest increase comes just as oil prices on Monday climbed above $70 a barrel for the first time in four months. The rise in the price of oil followed fears that the US airstrike that killed Iran’s top military commander may trigger retaliation and disrupt global oil supplies. Rising tensions between the U.S and Iran have caused considerable turbulence in the oil markets.

Daily Trust reports that whenever there is a surge in oil price, the expectation is that Nigeria will earn more dollars from crude exports but because the country imports the bulk of petrol it consumes and sells below the market price, NNPC which is the sole importer of the product for Nigeria, incurs billions in subsidy (under-recovery) daily. The PPPRA figure showed that PMS landing cost increased from N162.91 per litre in December to N164.13 on Monday just as the open market price for the commodity soared to N183.50 on Monday, compared to N182.28 in December.

The latest increase shows N38 per litre difference which NNPC currently incurs. PPPRA estimates daily NNPC under-recovery (subsidy) at over N1.2 billion. It means that on a daily basis, over N1.2bn cannot go to the treasury for sharing to all the states. Daily Trust reports that heavy subsidy burden in the past have contributed to NNPC’s failure to meet its obligation to FAAC thereby leaving federal and state workers including contractors without salaries or pay for months.

FAAC is made up of the 36 state commissioners of finance including officials of federal revenue generating agencies who gather in Abuja monthly to share monies earned the previous month. The major revenue generating agencies include customs, FIRS and NNPC and remittances by the NNPC form the largest chunk of the monies shared at FAAC but NNPC remits funds only after deducting expenses including subsidy (under-recovery) on petrol.
https://www.dailytrust.com.ng/oil-price-fg-revenue-shrinks-as-petrol-subsidy-rises.html

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by LastSurvivor11: 7:20am On Jan 08
Fuel subsidy is a scam———— by one daura dullardihio

Now we pay more for subsidy yet still pay more to buy the subsidized fuel..

55 Likes 4 Shares

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Edojoma(m): 7:21am On Jan 08
Which way naija,,, it keeps getting worse...

4 Likes 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by RichFoundation(m): 7:21am On Jan 08
Ok

1 Like 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Happyguy201: 7:21am On Jan 08
im leaving this country to kaduna . i cant take this anymore

2 Likes 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Mikelarteta(m): 7:21am On Jan 08
I thought the Dullard said there is nothing like subsidy? God will surely punish all these APC members, they lied their way to power and still lying to remain in power. Imagine after increasing pump price from N87 per litre to N145 per litre these idiots are still talking about subsidy and some morons here on NL will still carry Buhari for head.

62 Likes 3 Shares

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by u11ae1013: 7:22am On Jan 08
Let the war continue

1 Like 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Bellgal: 7:22am On Jan 08
Wahala dey oooo

1 Like 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by nothingspoil70: 7:22am On Jan 08
We can never win.Why?

Dangote please hurry up Nigeria is bleeding to death

1 Like

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by medalz(m): 7:22am On Jan 08
It is so disheartening the way this country is being run hypocritically. We are currently making high revenue due to the increase in crude oil price. However, since they've refused to make our refinaries functional while importing refined petroleum and consequently paying back crude oil profits.

4 Likes 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by sotall(m): 7:23am On Jan 08
Ok

So the price increase in crude oil cannot offset the price increase in petrol undecided

SMH for useless government.

You sell your raw material cheap and then buy finished product very expensive

17 Likes 1 Share

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by ETWs: 7:23am On Jan 08
Na waoo
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by mrvitalis(m): 7:23am On Jan 08
A country that makes less than 20 billion dollars from oil wants to subsidies fuel for 150 million Nigerians ....I laugh in Spanish

14 Likes 2 Shares

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Kalistine(f): 7:23am On Jan 08
undecided

1 Like

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by olujastro: 7:24am On Jan 08
Nigeria, one very funny country that lives on a two-edge sword where oil price rise is both a blessing and a curse.

Oil prices rise, we earn more dollars from oil sales and equally spend more dollars to import more expensive petroleum products.

Oil prices fall, we earn less dollars from oil sales and equally spend less dollars to import cheaper petroleum products.

Either way it goes, war or no war, we are financially doomed due to lack of refineries.

6 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Adesolomon2014(m): 7:24am On Jan 08
Issorite.
Part of the reason why Nigeria will be affected by the war is the above.
Dangote refinery should better hasten up its project.

2 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by AMERICAisKING: 7:24am On Jan 08
By the grace of God i can now go to sleep with my TWO eyes closed knowing President Donald Trump got my back, no more underground plots of terrorism that goes on and nothing happens as it used to be the case during Obama era, now its fire for fire, if you think you can disturb world peace Trump will TAKE YOU OUT! To hell with Islam!, let them do their worse, they are known for it anyways but they will and must not MISS paying for their mistakes with THEIR OWN LIVES. No more tolerating these known ENEMIES OF PEACE called MUSLIMS, you kill and you get killed simple!. Bring it on IRAN!!!

6 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by pat077: 7:26am On Jan 08
So, will Nigerians benefit from an increase in oil price or we will have to pay more for the product at home.
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by TRUSTEDGUY: 7:26am On Jan 08
Clueless leaders

1 Like

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by bekpo(m): 7:27am On Jan 08
Hmmmmmm
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by overall90: 7:28am On Jan 08
What they are telling you is that they are going to steal every kobo that will come from the windfall from the expected increase in crude oil price.

so Nigerians,don't expect to benefit anything even if oil price gets $100/barrel.

5 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by jamace(m): 7:28am On Jan 08
A cabal is siphoning Nigeria money in the name of subsidy. Buhari needs to personally investigate this subsidy of a thing. I suspect a great fraud going on.

3 Likes 2 Shares

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by quentin06: 7:29am On Jan 08
nothingspoil70:
We can never win.Why?

Dangote please hurry up Nigeria is bleeding to death

you think dangotes fuelwill be cheap?

it will cost more than his cement.

1 Like

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by Nobody: 7:30am On Jan 08
Happy New Year.

1.Basically, as oil prices go up , the cost of fuel goes up, the cost of importing fuel goes up, and the cost of subsidy goes up.

2.And the reason why we cannot produce fuel at home in Nigeria is because subsidy means that any fuel NNPC refines at home would be sold at a loss, reducing incentive to build new refienreis. It is the same reason why very few people, apart from Dangote (who has adequate sources of cash eslewhere) are building new refinereis.

3.The subsidy thing too is fuelling corruption.

4.Basically, oil subsidy MUST go...for

a) More investment in refinereis, since people can now refine and sell fuel at a profit.

b) An end to smuggling, and thus an end to broder closures...since no one would be buying fuel at N140 and selling it in Benin and Niger for N300 and above, and pocketing the profit at our expense.

c) More refienreis, which means more jobs.....and more income...as we become an exporter of fuel.

d) Finally, an end to fuel subsidy cabals, and more savings for government...meaning less recourse to taking loans.

Oil subsidy must go.

2 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by bewla(m): 7:31am On Jan 08
U
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by itsme01: 7:31am On Jan 08
grin



Ipobian.. this is the impact of war on global economy.. you people were hailing trumps decission

Now Ikpeazu that is owing 23 months salary wont even give your father a kobo since he now has an excuse


..

2 Likes

Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by nothingspoil70: 7:32am On Jan 08
quentin06:


you think dangotes fuelwill be cheap?

it will cost more than his cement.
I beg to disagree sir
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by chloride6: 7:33am On Jan 08
What a moronic article...

Subsidies increase but oil revenue increases faster...
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by jhydebaba(m): 7:34am On Jan 08
I thought closing the borders has reduced significantly the litres consumed by Nigerians hence reduced the amount paid on subsidies drastically What is this again
Re: Oil Price: FG Revenue Shrinks As Petrol Subsidy Rises by AroOkigbo(m): 7:35am On Jan 08
nothingspoil70:
I beg to disagree sir
Why will Dangote petrol be cheaper? Is he producing for local consumption? Is he going to buy crude oil at a cheaper than international price?

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