A data from Petroleum Products Pricing Regulatory Agency’s
website has revealed that the Federal Government has incurred a total sum of
N56.784bn in petrol subsidy arrears since Muhammadu Buhari took over as
President of the country on May 29, this year. According to the data, the
country is said to be incurring petrol subsidy arrears to the tune of N47.32
per day on one litre of petrol.
Between May 29 and now, the current government has spent 30
days in office.
Based on a daily petrol consumption figure of 40 million
litres, a figure supplied by the Pipelines and Products Marketing Company, the
total subsidy cost on the product for the 30 days the Buhari government has
been in power amounts to N56.784bn at N47.32 per litre. The current PPPRA
figures put the total cost of Premium Motor Spirit (petrol) at N134.32 per
litre, of which N118.83 is the landing cost while N15.49 is the sub-total of
the margins.
According to the PPPRA, the cost of a litre of petrol with
freight is N106.85; traders’ margin, N1.47; lightering expenses, N4.19; the
Nigerian Ports Authority rate, N0.77; financing, N1.75; jetty depot thru’put
charge, N0.80; and storage cost, N3.00. For the distribution margins, retailers
are entitled to N4.60 per litre of petrol; transporters, N2.99; dealers, N1.75;
bridging fund, N5.85; marine transport average, N0.15; and administrative
charge, N0.15.
For the period under review, only the Nigerian National
Petroleum Corporation is said to be importing petrol because members of the
Major Oil Marketers Association of Nigeria have refused to import owing to
subsidy arrears owed them by the Federal Government.
Oil marketers had on June 3 this year said they were still
being owed over N291bn subsidy claims.
10 Comments
In such a short period?
ReplyDeleteThis is bad...
ReplyDeleteHmmmm!
ReplyDeleteHope this isn't right thou!
ReplyDeleteMaybe cos of the moves to stop subsidy
ReplyDeleteOh dear! Scarcity looms
ReplyDeleteCondition facing this country is beyong what an old man will handle
ReplyDeleteAw! This is one reason they soon cause fuel scarcity.
ReplyDeleteThere must be a way.
ReplyDeleteIt's too early to start attempts to frustrate Buhari.
ReplyDelete