The torrential fall of the Naira which has turned the petroleum supply chain into a quagmire is fast eroding the projected gains after the federal government finally removed the petrol subsidy regime.

Oil marketers and government officials also appear not to be on the same page when it comes to the actual landing cost of Petroleum Motor Spirit and the impact that Nigeria’s fluctuating currency has had on the importation of the product.

Presently, it has been calculated that landing cost of Premium Motor Spirit, PMS also called petrol has averaged N1,009 a liter going by prevailing rate of N1,500 per dollar, from N720 per litre recorded in October 2023.

Though, this cannot independent be confirmed by our Correspondent as President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said such figures may still be disputed because there are other associated costs like insurance, port charges and cost of hiring vessels.

It has also been reported that the country is paying about N907.5 billion subsidy on petrol monthly as the country’s foreign exchange crisis pushed the actual cost of litre of fuel to N1,203, signalling a return of subsidy regime.

However, an inside source at the Nigerian National Petroleum Company Limited, NNPCL, denied the insinuation.

The source said such reports are falsehood and should be disregarded as subsidy has gone.

“I think we should take a look at the provisions of the Petroleum Industry Act, PIA, which gives the NNPCL the responsibility to ensure energy security at any time. Though it operates as a limited liability company that pays dividend to shareholders, nonetheless the PIA vests that responsibility to the Company to provide buffer and secure the country’s energy demands and perhaps that is what is erroneously being interpreted as return of Subsidy.
The group CEO of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, had said at the birth of NNPCL that the country was spending over N400 billion monthly on petrol subsidy, but investigations into Nigeria’s petrol pricing dynamics have revealed a significant surge in the landing cost of petrol, attributed to the escalating exchange rate.

In his views, the chief executive officer, CEO, of the Center For The Promotion Of Private Enterprises, CPPE, Dr. Muda Yusuf, said, “Evidently, the currency depreciation has partially eroded the subsidy savings.”
According to Yusuf, this is because the cost of fuel importation has increased, when converted to naira, adding.

Besides, the mounting inflationary pressures has inherently increased the subsidy because the pump price had remained fixed while the landing cost has been on the increase.”
This he said is understandable in the light of the current hardships being experienced by the citizens.

“The government is unlikely to go back to full subsidy. Doing so, would amount to a complete reversal of a major pillar of the current reforms. Besides the government do not have the fiscal space to ensure full restoration of subsidy.

“The objective of the reform is actually to exit completely from fuel subsidy regime. But this will take some time as the economic fundamentals are still weak.” he advised.
Just recently the International Monetary Fund (IMF) claimed that the Nigerian government has, through the backdoor, resumed the payment of subsidies on petrol.

LEADERSHIP WEEKEND writes that on May 29, 2023, President Bola Tinubu announced an end to petrol subsidy, which caused a hike in the prices of goods and services in the country.

Following that announcement, the Central Bank of Nigeria (CBN) collapsed the different exchange rate regimes into one, with the value of the naira to the dollar weakening.
The IMF recently issued a statement on the conclusion of its Executive Board’s Post Financing Assessment with Nigeria, during which it expressed concerns that the government had capped the prices of fuel at retail stations.

The IMF advised Tinubu to completely stop the payment of subsidies on petrol to free funds to run the government.

In reaction, some Groups and individuals rejected the IMF position for what they described as “anti-masses policies”, and called on Nigerian government to explore home grown options that would fix the economy and better the life of the people.

But the minister of Information and National Orientation, Mohammed Idris, on Wednesday, said petrol importation in the country reduced by 50 per cent since the withdrawal of the fuel subsidy.

Idris said this at the third edition of the ministerial press briefing series, where the coordinating minister for Health and Social Welfare addressed journalists in Abuja.

He said,“Petrol importation has been reduced by 50 per cent since the withdrawal of the fuel subsidy. The Nigerian Stock Exchange All Share Index crossed the 100,000 mark – its highest ever, mainly due to the pragmatic reforms initiated by the President, which inspired investor confidence in the Nigerian economy.
It is also encouraging to state that oil production has risen from 1.22 million barrels per day in the second quarter of 2023 to 1.55 million barrels per day in the fourth quarter of 2023.”
President Bola Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023, saying, “Subsidy is gone.”

Idris notes that President Tinubu has also given a directive for the design of a Social Security Unemployment Programme to cater for unemployed graduates.

Equally, President Bola Ahmed Tinubu, has stated that the decision of his administration to remove subsidy on Premium Motor Spirit (PMS) was premised on the need to ensure long-term energy security and economic prosperity of Nigeria.

Tinubu stated this in his keynote address at the opening ceremony of the 7th Nigerian International Energy Summit (NIES) at the Banquet Hall of the Presidential Villa, Abuja on Tuesday, 27th February, 2024.

The president who was represented at the event by the minister of Information and National Orientation, Mohammed Idris, noted that the petroleum subsidy had, over the years, strained the country’s economic resources, leading to inefficiencies and, most importantly, hindering ability to invest in critical areas of energy security.

He admitted that the decision to remove the petroleum subsidy was a challenging one, but stressed that it was a step that must be taken to secure Nigeria’s energy future and foster economic growth.

He added that by removing the subsidy, “We are creating a more transparent and accountable energy sector. The funds that were previously allocated to subsidizing petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure”.

However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the only way out of this quagmire is to tap and explore the country’s vast gas deposits and bring it into useful disposition.

https://leadership.ng/pms-landing-cost-hits-n1000-mark/#:~:text=Presently%2C%20it%20has%20been%20calculated,litre%20recorded%20in%20October%202023.

Tinupoo took a good step by removing fuel subsidy in the mud😂


Vagabonds in power

Shege for march renewed

Nigeria dependant on oil is way too much. I kept imagining what will happen to Nigeria if oil suddenly vanish from oil our land.

Tinubu as a president have no clue as to what governance is, all he is concerned with is just to answer president, and loot the nation's treasury.

The same subsidy he hurriedly announced that it has come to an end in his inaugural speech without putting things in place to cushion the effect on the people, is the same stuff he is paying now with the level of suffering it has caused Nigerians.

Hmmn

Shege banza, Tinubu's four years will look like 20 years. One have to take things easy because this Tinubulation will increase bp patient.

Lol. PMS is doing catch up. Been buying diesel for N1,700.

I avoid the temptation to multiply the number of hours the diesel generator was used by estimated number of litres consumed. 😁

Get ready, guys. We're in for a long ride.

Renewed hopelessness.

As you lay your bed.....

The will start foaming in the mouth.

Wailers on overdrive, they don't have anything to wail about again, they have gone back to propping up subsidy propaganda. If you know FG is paying subsidy, pls prove it, go and import your fuel and sell it at your own price , so we can belive you. Tell these marketers that the subsidy money they are looking for is gone! Thieves.

If Nigerians do not forget tribalism and religious affiliations, they will all die of abject poverty and untold hunger.

The current political class would rather die than fix anything that does not impact them .

Nigerians, stand up and resist these evil hawks in power or you and and your families will die hopeless deaths. This is no threat…. It’s a near term reality.

Forget about TUC and NLC protest, those are all choreographed from Aso Rock

9month now still now positive change from this government.

1.2k $0.8

Oh well..

As far as he keeps paying N1 trillion naira monthly subsidies and deceive the public that subsidy is gone..

https://www.youtube.com/watch?v=Ipv0Mt75Ipk

renewed shege banza

The great Tinubulation

Tinubu don run us street

Invincible subsidy to the rescue

We have learned from tinubu’s Trial and error government that before you remove subsidy, there must be fixed prices of goods and services else it leads to high inflation, and that’s bcoz of greediness of people 😂😂😂

Wouldn't expect anything less with the current exchange rate. So unfortunate how a country that has crude oil depends on foreign countries for refinement.

Nigeria wahala no dey finish

What Tinubu cannot do does not exist.
Na him be say fuel will be sold at 1200 per litre

Thank God for my 3 cylinder minivan!
2 litres of fuel can take me to and fro to my office for a distance of 240km!

You see

And where is Dangote refined petrol after about a year of commissioning the refinery?

K

bbbb

Nigeria is literally ruled by fools.

This is crude oil we have here in our country which we can refine and distribution here at lover cost.

Bcv

I'm not angry with the politicians oooooo, my anger is with some of the poor, hopeless, foolish, wretched, impoverished masses who still support these same old set of leaders either because of tribalism, political affiliation or religious sentiment.
Laslas, we all go dey alright sha.

Oga if you no meet your wife as a virgin, oga go for DNA test oooooo because boreholes aka non-virgins can't be trusted