₦airaland Forum

FG now pays transport surcharge, not subsidy on imported petrol – PPPRA




The Federal Government is now paying for transportation surcharge on imported fuel not extra cost of fuel, due to the drop in the global oil price to about $45 a barrel.

A check by Daily Trust on the template of the Petroleum Product Pricing Regulatory Agency (PPPRA) published on December 3, 2015 indicated that the landing cost of Premium Motor Spirit (PMS) locally known as petrol has dropped to N80.69k per litre as against N88.7per litre on September 3, 2015.

The template published by the pricing agency in its website, indicated that the landing cost plus other margins of the petrol per litre is now N96.18k. This translates to payment of N10.7k transportation expenses such as trader’s margin, Nigeria Port Authority charges, jetty depot thruput charges, lightering expenses and storage due to the inability to refine fuel locally.
Other expenses that gulped N15.49k on each litre are that of distribution expenses such as retailers, transporters, dealers, bridging fund, Marine Transport Average (MTA).

C+F (Cost, Insurance and Freight) as at that date was N69.99k at the Conversion Rate (MT to Litres): 1341 and Exchange Rate (N to $) at 197.

With C+F at N69.99k plus transport margins of N10.7 k, Nigerians should be paying N80.69k per litre if the fuel can be refined locally.

Currently, the three local refineries in Kaduna and Port Harcourt and Warri are virtually refining nothing. With the combined refining capacity of 445,000 barrels per day, the three refineries if fully working can atleast provide about 40 per cent of the country’s daily fuel need.

Reacting to the situation, a lecturer at Economics Department, Ahmadu Bello University, Zaria and member, Daily Trust Board of Economists, Dr Muttaka M. Usman said although the country has no capacity to refine local fuel due to poor refineries, the government should look at total domestication of fuel refining in the near future.

Usman said with this situation, it’s the right time for government to exit the so called fuel subsidy and concentrate in building more local refineries in collaboration with private managers.

According to him, many countries own refineries but hand them to private sector to manage, a situation that reduces serious maintenance burden on government.




http://dailytrust.com.ng/news/business/fg-now-pays-transport-surcharge-not-subsidy-on-imported-petrol--pppra/123004.html

Aint dat funny...


Just like Fed. Govt. said Aisha's office would now be called "Office of the Wife of the President"?


All these na in the name of what now, chancing the chanceable

AngryNigerian:
Aint dat funny...
Just like Fed. Govt. said Aisha's office would now be called "Office of the Wife of the President"?
All these na in the name of what now, chancing the chanceable

very funny but seem true3

What is the difference? Awon oloriburuku

Subsidy should be done with.

AngryNigerian:
Aint dat funny...


Just like Fed. Govt. said Aisha's office would now be called "Office of the Wife of the President"?


All these na in the name of what now, chancing the chanceable

How can you equate subsidy payment to transport surcharge Huh?

So government now pays for transportation alone? Until the chinese and co. are allowed into our local market our largely indegenious marketters will continue to 'rig' the cost of fuel for selfish interests.

But wait oh,i thought buhari"s body language has fixed nigeria"s refineries?

Aufbauh:
How can you equate subsidy payment to transport surcharge Huh?

APC...PDP...ZZZ...
All na change of name...
Bro, don't be deceived; they don't care about us!


All these moves are gimmicks to perpetualy dock us...
As for me and my family, we cant trust them...no way!

Semantics. It's still subsidy in another guise.