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| Minister of State for Petroleum Resources, Ibe Kachikwu (1st Right) before senate committee |
The Federal Government on
Saturday recommenced the payment of subsidy on petrol as it subsidized the
commodity by ₦5.84 for every litre of premium motor spirit consumed in Nigeria.
The Punch report continues:
Subsidy
on petrol was stopped in January after the review of the pricing template of
the product by the government.
It
also announced that the current official pump prices of petrol would remain at ₦86
per litre when purchased at filling stations run by the Nigerian National
Petroleum Corporation and ₦86.5 per litre when sold at outlets operated by
other oil marketers.
The
government further said petrol scarcity would end in a few days, but was silent
on the specific day or date.
Figures
from the latest pricing templates of the Petroleum Products Pricing Regulatory
Agency released on Saturday, showed that the Federal Government was paying ₦5.84
as subsidy on every litre of petrol sold at non-NNPC filling stations.
The
PPPRA is the agency of the Federal Government that regulates the prices of
white products — petrol and kerosene, across the country.
According
to the agency, the Expected Open Market Price of petrol for non-NNPC stations
as at April 2, 2016, was ₦92.34 per litre, against an official pump price of ₦86.5
per litre, leaving an under-recovery or subsidy of ₦5.84 per litre.
Similarly,
the template for NNPC-run stations showed that the government was paying ₦5.80
per litre as subsidy, as the EOMP for outlets in this category was ₦91.80 per
litre as against an official rate of ₦86 per litre.
The
EOMP is the actual cost of petrol without subsidy and comprises of the landing
cost of the product as well as its subtotal margins like transporters charge,
admin fee, dealers cost, bridging fund, etc.
On
the retained pump price of petrol, the Acting Executive Secretary, PPPRA, Mrs.
Sotonye Iyoyo, said, “The agency is retaining the retail prices of ₦86.00 for
the NNPC, and ₦86.50 for the other marketing companies. The pump price of
household kerosene also remains unchanged from what it was in the last quarter.
“Therefore,
marketers are advised to ensure that there is no price distortion in their
respective retail outlets. PPPRA, however, shall continue to monitor the global
oil market performances, and come up, at appropriate time, with reasonable
changes consistent with the newly-adopted price modulation principles.”
On
news making the rounds that the agency was planning to increase the petrol
price, Iyoyo urged members of the public to ignore such rumour, as prevailing
market indicators do not support such.
She
also called on motorists to desist from panic-buying, stressing that “PPPRA was
working hard with other sister-organizations to ensure that the current supply
and distribution challenges were resolved within the coming days.”
Meanwhile,
the agency stated that it had released the second quarter allocations for the
supply of petrol, based on the approval of the Minister of State for Petroleum
Resources, Dr. Ibe Kachikwu.
It said, “In the latest
release, the apex national oil company, the NNPC, has 41.74 per cent of the
total allocation, while the rest of the oil marketing companies got a total
allocation of 58.27 per cent.”
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