FG returns payment of subsidy on petrol, retains price at N86 per litre

According to reports, the Federal Government on Saturday returned the payment of subsidy on petrol as it subsidised the commodity by N5.84 for every litre of premium motor spirit, otherwise known as fuel.

Buhari 1

Recall that subsidy on petrol was stopped in January after the review of the pricing template of the product by the government. The FG also announced that the current official pump prices of petrol would remain at N86 per litre when purchased at filling stations run by the Nigerian National Petroleum Corporation and N86.5 per litre when sold at outlets operated by other oil marketers, Punch reports.

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 N5.84 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 N92.34 per litre, against an official pump price of N86.5 per litre, leaving an under-recovery or subsidy of N5.84 per litre.

Similarly, the template for NNPC-run stations showed that the government was paying N5.80 per litre as subsidy, as the EOMP for outlets in this category was N91.80 per litre as against an official rate of N86 per litre.

On the retained pump price of petrol, the Acting Executive Secretary, PPPRA, Mrs. Sotonye Iyoyo, said: “The agency is retaining the retail prices of N86.00 for the NNPC, and N86.50 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.”

She also called on motorists to desist from panic-buying, stressing: “PPPRA was working hard with other sister-organisations to ensure that the current supply and distribution challenges were resolved within the coming days.”

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18 Comments

    • Be reasonable for once…you and I know subsidy is not one of the things that should be part of the present nigeria economy situation…the only mistake the FG made was not putting the right measures in place before the subsidy was removed to prove oil marketers are dispensable….now their oog motive of cutting cost has back fired

  1. Well its official we have been deceived. Subsidy is the bedrock of corruption in nigeria that does no one any good cause we as consumers will never get the product as official rate yet government will claim that it pays for it and our dreaded cabals can choose to lockup any day or moment

  2. Na wa for Buhari ooooo…. Wish I can fast-forward Nigeria to 2019 when he’ll be voted out of Aso Rock to Daura.

    • If fighting against corruption is only changes for now dt s enough & ok. Where people fine it difficult to deep their hand into federation account & operating CBN like children money gar.
      Just be patient other changes will follow.

  3. The nnpc is more powerful than the Nigerian armed forces, police and parliament all put together . nnpc is more organised than any religious or ethnic group in nigeria. but it’s power is just 2 things. power to fix price and power to run the refinery. Just take this 2 powers of the nnpc away there will be no more issues. if I give you 1 billion dollars to build refinery, none of you will do so because you have to deal with nnpc that is collecting free 500 million dollars for overseeing 4 oil museum refinery monuments that can’t produce oil and this same nnpc has to fix price. The president is powerless to touch the refinery or price because pengathief and nupenthief will collapse nigeria in hours with strike. goodluck tried to touch oil price by deregulating but you know the story. Obasanjo tried to sell 2 of the refineries to wealthy Nigerians but alas nnpc went on the full scale offensive. yaradua reversed it and immediately after 500 million yankie was released to “prodecieve” Nigerians that they are working….. I laughed on Facebook then and said if they produce or prothief pms to the extent that we don’t import I will admit I was wrong.

  4. I knew from day one that those criminals are the people behind fuel scarcity because of the subsidy remove. God is watching

  5. Can someone tell me the difference between GEJ and PMB regimes! None! Only change of guards at AsoRock! Other personnel and major actors remain same! May God help this country!

  6. Nigeria must be a very difficult country to govern! I commend this administration for attempting to make these changes, someday, they will get things right.

  7. Most of the mistakes made by this administration must pass for honest mistakes since the president and his vice have been so transparent and puritanical about their duties.
    The saboteurs cannot hold Nigeria down for long.This fuel conundrum is going to be the last ever and the forex palaver would ease out ultimately.
    Nigeria cannot have any better deal than a president that will not steal and will not allow its ministers to steal,one more year of sustenance of this government would take Nigeria out of mediocrity.

  8. I habe always known that the CABALS will never rest until they get back Subsidy. They have been armtwisting the govt. by all manner of gimmicks like hoarding thereby causing artficial scarcity and by so doing got govt. to agree to them participating in the importation of PMS with the attendant subsidy payments. I am only worried that these CABALS are Nigerians and not Ghanians or Togolese, meaning we do not loves ourselves !

  9. And d mumu of d day is – “all those looking 4 change they have not worked 4.” Yes they are mumu not because d goverment decieved dem, but bcos dy decieved themselves. Is that how u collect a nice fat cow, from a rabid pack of hyenas.Ed & ajisola seem 2 get d pix. If u think ds sabo boys will be stopped without a good hard fight with d populace getting into d fight & driving d goverment forward into a sustained attack ; rather than sitting aside like spectators or beer parlour commentators discussing a struggle for d soul of d nation like some distant event, then me thinks u might be more deluded than d goverment dat wants to shut down a massive criminal industry without plans on how to neutralize d beasts & their backlash. I suggest such ppl should “head back to Egypt in a hurry 2 eat d delicacies of slavery” rather than drain d needed strenght to break thru ds challenging labour pains. This pains can not be in vain. We cant ,leave this or any govt 4 dt matter alone in this battle. We must push them until this battle produces a favourable outcome 4 US. Use d internet & every other means available 2 goad & prod. I no send APC , i no send PDP, all i know is that our potential must be born. We no push Jonathan 2 do am he no gree, ds one must cooperate by fire by force. Many battles still 2 fight – Ajaokuta steel must come alive,e.t.c. every ogbanje & blood-sucking spirit die byfire- physical & spiritual.

  10. They said subsidy is a scam.. Most of u people here are just talking as of u can’t read properly.if buy something at the rate of 91or92…u asking me to sell 87 OR 86 without provision for the remaining balance is difficult. Dis government is just fooling it self…..

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