₦airaland Forum

The federal government has officially stopped
paying subsidy to oil marketers for the
importation of premium motor spirit (PMS),
otherwise called petrol and household kerosene.
An analysis of the Petroleum Products Pricing
Regulatory Agency (PPPRA) revised pricing
template displayed on its website showed that
with effect from January 1, 2016, the government
was no longer paying subsidy for the importation
of any petroleum products.


The stoppage of subsidy payments, according to
recent pronouncements by the Minister of State
for Petroleum Resources, Dr Ibe Kachikwu, is to
reflect the prevailing low price of crude oil in the
international market.


By implication, government will not be paying
subsidy to marketers until March 31, 2016 when a
review of the pricing template is expected to be
done. But the minister might call for a review
before then if there is a major change in the price
of oil in the international market.


The PPPRA had on Tuesday announced new
pump prices for PMS for marketers and NNPC
retail stations but said nothing about a new price
for kerosene. Before the revised PPPRA template,
the retail price of kerosene was N50/litre, while
the government was subsidising the product at
N41.59 per litre as at December 29, 2015.
The agency has removed the pricing for kerosene
in the latest template it said was based on
average Platt’s Prices for December 31, 2015. It
put the expected open market price (EOMP) of
petrol for NNPC retail outlets at N84.78/litre,
landing cost N70.48/litre, ex-depot price N76.5/
litre and retail price N86/litre.


The EOMP of petrol for oil marketers is put at
N85.1/litre, landing cost N70.8/litre and ex-depot
price N77/litre, while the retail price is N86.5/
litre. The difference between the EOMP (N85.1)
and retail price (N86.5), which is the subsidy,
amounts to N-1.4/litre.


The negative subsidy, according to the Executive
Secretary of the PPPRA, Farouk Ahmed, who
announced the new pricing template, meant
government will recover the difference from the
marketers.


He explained, “The open market price is N86.29k.
If you do the calculation, that means there is an
element of over-recovery and what we will do now
is that we will go back to the marketers and bill
them for the recovery. With regards to the NNPC,
their arrival is N85.93k, but they are selling at
N86, so there will also be an element of over-
recovery. However, we are comfortable with the
numbers.”


Ahmed also disclosed that the federal government
has set aside an extra N108 billion to offset
subsidy claims to oil marketers for the last
quarter of 2015.


The government had recently paid marketers
N407bn outstanding subsidy claims, which
covered claims up to September 2015, including
arrears from 2014. The N108bn, Ahmed said,
would cover for the month of October, November
and December 2015.


“For the month of October, November and
December, the PPPRA has been verifying subsidy
claims. We have been able to verify October and
November and we will send everything to the
Debt Management Office for payment,” he said.



www.dailytrust.com.ng/news/general/fg-finally-scraps-subsidy-on-petrol-kerosene/127092.html#r4TZKvKduqI4XKPm.99

Do you really need another proof that APC and Buhari really knows what they are doing ??




One thing people will complain about :

By implication, government will not be paying subsidy to marketers until March 31, 2016

they'll say it's not permanent

But what they will not see especially children of corruption and hate :

a review of the pricing template is expected to be done. But the minister might call for a review before then if there is a major change in the price of oil in the international market

meaning there's possibility that Petrol , kerosense and other product's price may be reduced once they carry out their research


LordEmmyG , clear all doubts and put a reliable source

DaBullIT:
Do you really need another proof that APC and Buhari really know what they are doing ??

they were in a tight corner I presume.. You wouldnt aff done anythinq better iffu were in their position.

I would believe this only when sources like channels and international media report it, not some sourceless article on a faceless Nigerian forum.

Dnt bliv




Cos i neva ear ram 4 nuc.

teemanbastos:
they were in a tight corner I presume.. You wouldnt aff done anythinq better iffu were in their position.

Lagos is scary. You open your door to let a fly out and in comes 6 mosquitoes, 2 cockroaches, 1 rat and 2 Jehovah witnesses. grin grin grin



Hahahahahahahahahahahah bwajajaahahahahahahahah Wicke

We are getting there slowly and surely.

even the sick old Yaradua did this naw.
He ordered NNPC to stop paying kerosene subsidy.
unfortunately, he did not gazette it
and the wise good people at NNPC continued paying subsidy to themselves and their cronies.
to avoid "had i known", buhari should gazzette this stoppage of subsidy payments
or i will continue to take him as the joke he is.

Now our suffering begins

mazzi:
Now our suffering begins

You can only speak for yourself and your household

I am watching...

likila:
even the sick old Yaradua did this naw.
He ordered NNPC to stop paying kerosene subsidy.
unfortunately, he did not gazette it
and the wise good people at NNPC continued paying subsidy to themselves and their cronies.
to avoid "had i known", buhari should gazzette this stoppage of subsidy payments
or i will continue to take him as the joke he is.

That occurred under Yaradua cuz he got a clueless brain dead zoologist as his vice president. So sure you can't compare Osibanjo to GEJ