₦airaland Forum

Subsidy on petrol now N2.84 per litre –PPPRA

Despite the recent reduction in the pump price of petrol from N97 to N87 per litre, the Federal Government has claimed it still pays N2.84 as subsidy on every litre of the product consumed.

According to the latest petrol pricing template published on the website of the Petroleum Products Pricing Regulatory Agency, the Expected Open Market Price of Premium Motor Spirit, otherwise called petrol, is N89.84 per litre, while the regulated price is N87 per litre.

The PPPRA said the approved prices of petroleum products were from January 16, 2015.

According to the agency, the landing cost of petrol is now N74.35 per litre, while the ex-depot price is N77.66 per litre.

On January 5, The PUNCH reported that with the price of the global benchmark Brent crude closing at $57.94, the Federal Government was paying 90 kobo as subsidy for a litre of petrol because the PPPRA pricing template had put the EOMP of petrol at N97.90.

The Federal Government on Sunday night announced the reduction in the pump price of petrol by N10 per litre, attributing this to the decline in global crude oil prices.

The Minister of Petroleum Resources, Diezani Alison-Madueke, while explaining the reason for the reduction in fuel price, said, “There has been a lot of volatility in the oil market in the past few months and due to this, the importation prices of our petroleum products have been impacted.

“Therefore, with the approval and directive of Mr. President, and by virtue of Section 6 clause 1 of the Nigerian Petroleum Act, it is my responsibility as the Minister of Petroleum Resources to hereby announce a reduction in the pump price of Petroleum Motor Spirit from the current N97 per litre to N87 per litre, effective from midnight of Sunday, January 18, 2015.”

Copyright PUNCH.All rights reserved.

http://www.punchng.com/business/business-economy/subsidy-on-petrol-now-n2-84-per-litre-pppra/

President Jonathan is just deceiving Nigerians. He has no real developmental plans for this country. Why still subsidy?? I thought he earlier claimed that the subsidy regime is what is not making that industry to perform optimally and that it was rife with corruption.

Is this not the best time to finally remove all the subsidies and allow the market to run on its own?

Was that not the economics Aunty Okonjo Iweala and Diezani were preaching to us then??

ha what subsidy again? petrol is going for way cheaper in unsubsidized markets now at 87 naira they have invented 2 8 naira extra. is this not daylight robbery GEJ must go back to outuoke May 30 2015. Nobody can stop it. we have had enough.

Why keep the subsidy?
Seems some people survive on that subsidy fraud

Why are our refineries not working?!!!!

Simple question.

Please someone, answer the question. I am tired abeg

Mynd44:
Why are our refineries not working?!!!!

Simple question.

Please someone, answer the question. I am tired abeg

the only way that thing can work is when they sell it off. But the aboki man in kaduna no go gree to such.

Redoil:
the only way that thing can work is when they sell it off. But the aboki man in kaduna no go gree to such.

Why has the PDP led government not sold them off since 1999?

Can it be that they want them to remain bad so they can feed off turn around maintenance or so their friends can keep importing em?

One would expect that the subsidy would have been completely removed, as this is the best time to do so, if as at Jan 5, the government was paying 90k as subsidy at the pump price of #97 (when global benchmark was $57.94).

Now, they are paying #2.84 as subsidy, Why didn't they completely remove subsidy and leave the pump price at #90?? As of now, the global benchmark is $48.99.

Government Magic - they steal all the money.

Jonathan has killed this nation! Imagine the degree of theft!!! OMG.

I feel like puking.

Suddenly everyone is clamoring for the removal of subsidy but when the current admin had the foresight and courage to do so, we all stormed the streets protesting ignorantly.

Welcome to the times.

jmaine:
Suddenly everyone is clamoring for the removal of subsidy but when the current admin had the foresight and courage to do so, we all stormed the streets protesting ignorantly.

Welcome to the times.

Spare us the rhetorics Bro. As a leader you must take actions when you are sure it wont adversely affect majority of your citizens. The sudden increase then was totally out of it. It would have resulted into impoverishment of a lot of people and add to their woes. And the people reacted by protesting against it that it was not well timed.

They claimed they did a partial removal then, when will it be more convenient to do a total removal if not now. It just shows that they are insensitive. If they do a total removal now, people will be used to it already than when the prices climb up again and they are now reviewing the price upwards.

k

agabusta:
Spare us the rhetorics Bro. As a leader you must take actions when you are sure it wont adversely affect majority of your citizens. The sudden increase then was totally out of it. It would have resulted into impoverishment of a lot of people and add to their woes. And the people reacted by protesting against it that it was not well timed.

They claimed they did a partial removal then, when will it be more convenient to do a total removal if not now. It just shows that they are insensitive. If they do a total removal now, people will be used to it already than when the prices climb up again and they are now reviewing the price upwards.

And if they do a total removal now and miraculously the oil price jumps up to the $80 mark, what do we all do again ? Clamour for a reinstatement of the subsidy regime again. It's a vicious circle again.

The decision to remove the subsidy back then was a decisive one, we can't eat our cake and have it.

jmaine:
Suddenly everyone is clamoring for the removal of subsidy but when the current admin had the foresight and courage to do so, we all stormed the streets protesting ignorantly.

Welcome to the times.

Agabusta is right. Removing it then would have caused a lot of pain to Nigerians. However it is crystal clear that this is the best time to remove the subsidy completely like India and Indonesia have done.

The government should remove the subsidy NOW so that the price can stay at N90 and proactively come up with an intervention programme that will be implemented for poor Nigerians once oil prices start going back up.

HNosegbe:
Agabusta is right. Removing it then would have caused a lot of pain to Nigerians. However it is crystal clear that this is the best time to remove the subsidy completely like India and Indonesia have done.

The government should remove the subsidy NOW so that the price can stay at N90 and proactively come up with an intervention programme that will be implemented for poor Nigerians once oil prices start going back up.

Intervention plan like reinstating the subsidy regime right ?

I can confidently tell you that Nigerians won't ever cease to complain at any given time . If we had maintained the N67 and the gov't decides to remove the subsidy with attendant increase in price. The uprising would be enormous since the argument will be that the government have lesser amount to pay to alleviate the suffering of the common man. There's always a reason to protest.

Am at least happy that Nigerians are gradually coming to grips that petroleum subsidy has to go, which is a very good development.

The Nigerian government needs to hands off the oil sector completely. They need to issue licenses, provide regulations and collect royalties and taxes, nothing more. They should have no involvement in prospecting or refining, in importation or exportation and definitely no more subsidies of any sort. They need to sell off not only the refineries but any holdings of NNPC and scrap that parastatal completely.
The type of gradual privatization process going on in the power industry is long overdue in the petroleum industry. That is the only solution to these chronic problems.

jmaine:
Intervention plan like reinstating the subsidy regime right ?

I can confidently tell you that Nigerians won't ever cease to complain at any given time . If we had maintained the N67 and the gov't decides to remove the subsidy with attendant increase in price. The uprising would be enormous since the argument will be that the government have lesser amount to pay to alleviate the suffering of the common man. There's always a reason to protest.

Am at least happy that Nigerians are gradually coming to grips that petroleum subsidy has to go, which is a very good development.

Well my view back then was that the government should have initiated a PHASED withdrawal programme. I remember vividly that as at 31st December, 2011 NOI was in negotiations with labour with regard to agreeing on specific intervention programmes that would have ameliorated the impact of the subsidy removal. If the government had been patient enough to conclude those negotiations and arrive at a compromise with the NLC, we would have seen a phased withdrawal of those subsidies (while simultaneously introducing pre-agreed SURE-P programmes). I remember that what angered a lot of people (myself included) was the thoughtless, arbitrary and dictatorial manner that the government removed those subsidies in one fell swoop. That was what many people found unacceptable.

Anyway the government has another opportunity now. Let them grab it with both hands.

See how Indonesian president Joko Widodo handled fuel subsidy removal in Indonesia: http://www.livemint.com/Politics/7qRZBD4jCmj0SCW81VrjkM/Joko-Widodo-seeks-to-defuse-fuel-protests-with-budget-benefi.html

[size=28pt]THIS PEOPLE ARE DECIEVING NIGERIANS.

LET THEM REMOVE THE SUBSIDY USED IN SIPHONING MONEY TO CAMPAIGN FOR GOOFDUCK.[/size]

HNosegbe:
Well my view back then was that the government should have initiated a PHASED withdrawal programme. I remember vividly that as at 31st December, 2011 NOI was in negotiations with labour with regard to agreeing on specific intervention programmes that would have ameliorated the impact of the subsidy removal. If the government had been patient enough to conclude those negotiations and arrive at a compromise with the NLC, we would have seen a phased withdrawal of those subsidies (while simultaneously introducing pre-agreed SURE-P programmes). I remember that what angered a lot of people (myself included) was the thoughtless, arbitrary and dictatorial manner that the government removed those subsidies in one fell swoop. That was what many people found unacceptable.

Anyway the government has another opportunity now. Let them grab it with both hands.

See how Indonesian president Joko Widodo handled fuel subsidy removal in Indonesia: http://www.livemint.com/Politics/7qRZBD4jCmj0SCW81VrjkM/Joko-Widodo-seeks-to-defuse-fuel-protests-with-budget-benefi.html

My post history in 2012 also gave credence to your views of a partial removal to mitigate shock. But i was dismayed when the protest was largely a N67 or nothing approach.

At the end of the day, we finally settled for a pseudo phased subsidy removal approach.

After 16yrs of Corruption, PDP could not build a single Refinery. Vote for Change.

Gej is a thief.

Wow, why didn't the government remove the subsidy totally and leave PMS price at #90 than decrease it from 97 to 87 and still continue paying subsidy? This would have been the best time for the government to finally remove subsidy and I hope the government doesn't let this opportunity slide by. I'm hopeful.