₦airaland Forum

dekdek:

Protection seeker, actually it is simple economics because the General is in charge. When Jonah-daft was in charge, despite decline of oil price money payable on subsidy was never heard of to be declining yet u goons kept on succking his cocck without asking the right questions.

GudluckIBB:
From a high of N51.61 per litre on June 11, 2015, subsidy on every litre of Premium Motor Spirit consumed in the country has dropped to N14.39, data obtained from the Petroleum Products Pricing Regulatory Agency on Sunday showed.

The dip in the subsidy payable by the Federal Government is partly due to the sustained decline in global crude oil prices, which have continued to trade below the $50 per barrel mark in recent weeks.

The global benchmark Brent crude, which fell below $50 per barrel in January, rebounded to $65 in June, pushing up the subsidy on petrol. However, Brent traded around $48 per barrel on Sunday.

Subsidy refers to the money paid, usually by the government, to keep prices below what they will otherwise be in a free market system.

The PPPRA, in its latest pricing template released on Friday, October 2, 2015, stated that the landing cost and Expected Open Market Price (total cost) of petrol were N85.90 and N101.39 per litre, respectively.

This is against a regulated retail price of N87 per litre. The difference between the EOMP and the retail price is, therefore, N14.39.

According to the Nigerian National Petroleum Corporation, the country consumes about 40 million litres of petrol daily.

By multiplying the volume of petrol consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N575.6m on subsidy, down from N2.06bn in June 11.

Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state.

The landing cost is the cost of the product plus freight rate at N75.03; trader’s margin, N1.47; lightering expenses, N4.19; Nigerian Ports Authority fees, N0.77; financing cost, N1.68; jetty depot throughput charge, N0.8; and storage charge, N3.

The addition of the distribution margins to the landing cost gives the EOMP (total cost). The distribution margins comprise retailers, transporters and dealers’ profits as well as bridging fund, marine transport average and admin charges.

Retailers get N4.6; transporters, N2.99; dealers, N1.75; bridging cost is N5.85; marine transport average, N0.15; and the admin charge, N0.15. The sub-total margin stands at N15.49.

When added to the landing cost of N85.90, the EOMP of N101.39 per litre is arrived at.

The Federal Government had on January 18, 2015 announced the reduction in the pump price of petrol from N97 to N87 per litre, attributing this to the decline in global crude oil prices.

http://www.punchng.com/business/business-economy/subsidy-on-petrol-falls-to-n576m-daily/

dekdek:

Bring out the subsidy decline figures during Jonah-daft time as it is done now and save me all these eediocy.

Ovaiegbe:
You are right to talk about subsidy protest arising from the removal of subsidy (so an open market can determine the price of oil products). However, when you make comparison, please state all the facts. "A little mathematics, at N575 million daily, that would equate to about N210billion annually (with Brent selling at $48). Not too long ago in 2011, Nigeria paid N2.13Trillion for the same subsidy and after all the protests and exposes, Nigeria paid approximately N1trillion per annum (with Brent sellint at $110!) for the subsequent years."
You are convenient selective in your use of data for the purpose of your argument.
In 201, the then opposition's claim was that subsidy was a fraud(probably still is). Question is,
1. Is the fraud still going on?
2. Despite falling oil price, do we still need to pay subsidy?

jammiller:
Also contributing to this is a drop in consumption. Many people can no longer fuel cars and generators as the economy is so bad due to low income. The government should come up with a true graph of consumption and importation. The relative improvement in power supply also contributes to drop in consumption, but most of all, the economy is in decline as so many people are out of work and can't afford to live luxurious life anymore lately.

Ramsey247:
Your eediocy (if any word like that) is unpresidented.
A report states vivid reason for subsidy decline, yet u fail to get it.
The act of abusing people publicly is only for the idiots.

Bevista:
Imaima, don't fall for that guy. He has no point.

The average consumption of PMS in Nigeria is estimated at 40 litres/day. What the papers do is to take subsidy Per Litre of PMS and multiply with this 40 million figure to arrive at the ESTIMATED subsidy payment.

For instance, the paper reports that subsidy Per Litre in June was N51.61 while total daily subsidy was estimated as N2.06b. If you observe, N2.06b = 51.61 X 40m.

Similarly, the paper also reports that subsidy Per Litre as at Sunday is N14.39 while total daily subsidy is estimated as 575m. If you also observe, N575m = 14.39 X 40m. So, in both cases, the same estimated consumption of 40million litres/day is used.

If, indeed, our daily consumption has gone down below 40m due to improved power supply, then the ACTUAL subsidy payment per day will even be less than the estimated N575m. Remember, the figures are Estimates by the media and not the Actual figures from official sources.

obailala:
I am not being selective, in fact if I decide to give full details, it would be worse than I summarised it to be earlier.

- A reduction in global oil prices from $110 to $48/barrel => 56% reduction
- A reduction in subsidy bill from N2.13 trillion to N210 billion => 90% reduction

Now you may want to argue that petrol pump price was increased by N32 (to N97/litre) so let's consider the subsidy bill after the increase (also assuming that the global oil prices stayed at the highest of $110). Subsidy bill for 2012 to 2014 were approximately N1trillion per year

- A reduction in subsidy bill from N1Tn to N210bn => 80% reduction

Now note that the government in late 2014 actually reduced the pump price of petrol by N10 (means more subsidy). Therefore, the actual reduction in subsidy bill should actually be well more than 80%. Now I would implore you to compare this 80%+ to the reduction in global oil prices of 56% (note that this value of 56% is assuming the oil prices remained at maximum of $110 till last month).

In summary, after ruminating on the simple figures above, if you still think there's some form of fraud in the system (as a matter of fact I also do), then this little analysis above gives you a vivid description of the devilish magnitude of this fraud between 2011 and 2015.

dekdek:

I know ur shameless kind and ur antecedents is quite known to me so I don't spare fools like u.
While quoting me earlier, u gave insinuations that subsidy has been going down before now however I asked u to go dig up any report that says it did came down when Jonah-daft was in power yet no show.
It never went down when Jonah-daft was in charge despite huge fall in oil price. It's now that it's going down because the present crop of leaders we have now are very sincere and honest unlike the curse we had before now.

DaBullIT:
I predict a response from chief wailer
Why Buhari shouldn't be praised for fall in subsidy cost by tonyebarcanista

Ramsey247:
I dont have time for party agent of propaganda neither do i intend to sound like another party defendant.

Shut ur trap. No one is talking about parties here. Don't ffucking care about any of them.


But, it will be fair to mention here that price of petrol was reduced by #10

Oil reduced from over 140naira to below 60 naira and over a long period and what ur govt gave back was 10naira reduction of fuel price when elections was close by. Are u ok? Can't u smell deceit here?

and subsidy bill brought down from above #1Trillion a year to bellow half a trillion during GEJ's tenure.

Bring ur facts for all to see and not one u concocted from ur bias brain. This report that gave birth to this thread specifically tells us that so far in this govt, it's going down. Showcase that of Jonah-daft govt and stop telling lies.

Mtcheeew

Rubbish.

GudluckIBB:
From a high of N51.61 per litre on June 11, 2015, subsidy on every litre of Premium Motor Spirit consumed in the country has dropped to N14.39, data obtained from the Petroleum Products Pricing Regulatory Agency on Sunday showed.

The dip in the subsidy payable by the Federal Government is partly due to the sustained decline in global crude oil prices, which have continued to trade below the $50 per barrel mark in recent weeks.

The global benchmark Brent crude, which fell below $50 per barrel in January, rebounded to $65 in June, pushing up the subsidy on petrol. However, Brent traded around $48 per barrel on Sunday.

Subsidy refers to the money paid, usually by the government, to keep prices below what they will otherwise be in a free market system.

The PPPRA, in its latest pricing template released on Friday, October 2, 2015, stated that the landing cost and Expected Open Market Price (total cost) of petrol were N85.90 and N101.39 per litre, respectively.

This is against a regulated retail price of N87 per litre. The difference between the EOMP and the retail price is, therefore, N14.39.

According to the Nigerian National Petroleum Corporation, the country consumes about 40 million litres of petrol daily.

By multiplying the volume of petrol consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N575.6m on subsidy, down from N2.06bn in June 11.

Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state.

The landing cost is the cost of the product plus freight rate at N75.03; trader’s margin, N1.47; lightering expenses, N4.19; Nigerian Ports Authority fees, N0.77; financing cost, N1.68; jetty depot throughput charge, N0.8; and storage charge, N3.

The addition of the distribution margins to the landing cost gives the EOMP (total cost). The distribution margins comprise retailers, transporters and dealers’ profits as well as bridging fund, marine transport average and admin charges.

Retailers get N4.6; transporters, N2.99; dealers, N1.75; bridging cost is N5.85; marine transport average, N0.15; and the admin charge, N0.15. The sub-total margin stands at N15.49.

When added to the landing cost of N85.90, the EOMP of N101.39 per litre is arrived at.

The Federal Government had on January 18, 2015 announced the reduction in the pump price of petrol from N97 to N87 per litre, attributing this to the decline in global crude oil prices.

http://www.punchng.com/business/business-economy/subsidy-on-petrol-falls-to-n576m-daily/

jammiller:
Also contributing to this is a drop in consumption. Many people can no longer fuel cars and generators as the economy is so bad due to low income. The government should come up with a true graph of consumption and importation. The relative improvement in power supply also contributes to drop in consumption, but most of all, the economy is in decline as so many people are out of work and can't afford to live luxurious life anymore lately.

Mee234:
And from whose purse are u feed corruption now?

TonyeBarcanista:
It's just natural for the subsidy bill to fall. Drop in oil price means a reduction in the cost of buying the refined product by marketers. It also means a reduction in the landing cost and the cost in Open Market. This will naturally yield a reduction on subsidy bill.

jpphilips:
Speak English please

ikkkkk:
Very Interesting. Since our refineries are working well now, why hasn't the price of fuel in Nigeria been reduced? PMS STILLS SELLS AT 87NAIRA