FG subsidising petrol by N12

FG subsidising petrol by N12 – PPPRA

Farouk Ahmed, PPPRA boss

The Federal Government on Monday said it was currently subsidising Premium Motor Spirit (PMS) otherwise known as petrol at N12.62 per litre.

It said that the subsidy figure was for petrol imported directly by the Nigerian National Petroleum Corporation (NNPC) and dispensed at its retail outlets, while the rate was N12.88 per litre for other oil marketers.

This was contained in the latest Petroleum Product Pricing Regulatory Agency (PPPRA) Template released in Abuja.

It said that although provision was not made for subsidy in the 2016 budget, it would be defrayed from “recoveries” made by the country from oil transactions in the first quarter of 2016.

According to the agency, between January and March, 2016, the Federal Government was able to save about N10 billion as a result of selling the product above the Expected Open Market Price.

It explained that without the subsidy and given the landing cost of the product, it ought to be sold at N98.62 per litre at NNPC outlets and at N99.38 per litre by major and independent oil marketers.

According to the template, the expected open market price is the actual price of the product without subsidy and it was based on the current exchange rate of N197 to a dollar.

A breakdown of the template revealed that for NNPC retail outlets and independent and major oil marketers, landing cost of PMS imported into the country was N84.32 and N85.08 per litre, respectively.

It stated that the distribution margin, which included retailers, transportation, bridging fund and dealers margin stood at N14.30 for both NNPC and other marketers.

“This brings the current Expected Open Market Price to N98.62 and N99.38 for NNPC retail outlets and other marketers respectively,” it said.

Comments

Houthis Claim Attack on Central Israel in Response to Gaza ‘Massacres’

The ongoing conflict between Israel and Hamas has taken a concerning regional turn as the Houthi rebels in Yemen claimed responsibility for an attack on central Israel. The group announced this as part of their escalating response to what they describe as "massacres" in Gaza amid the Israeli military’s operations in the strip. Details of the Attack The Houthis, a Shiite militant group with ties to Iran, declared that they launched missile and drone strikes targeting Israel. While the exact impact of these attacks remains unclear, reports suggest that Israel’s defense systems intercepted several threats over its airspace. This marks a significant escalation as the Houthis widen their involvement in the conflict beyond their typical operations within Yemen and neighboring Saudi Arabia. The Houthis’ Justification In their statement, the Houthis framed the attack as retaliation for Israel’s military actions in Gaza, which they characterized as indiscriminate bombings resultin...

Fire: UniJos Senate convenes emergency meeting on Monday

Fire at the University of Jos Library University of Jos is to convene an emergency senate meeting on Monday to review the level of damage done to the institution by the Saturday night inferno. The Vice Chancellor, Prof. Sebastian Maimako, disclosed this on Sunday after inspecting areas affected by the incident. The fire, which lasted for more than six hours, destroyed the Library Complex that equally houses the faculties of management and social sciences. The fire also destroyed examination scripts, books and very crucial materials. Consequently, the vice-chancellor said “the Senate will meet tomorrow (Monday) to take a decision about the unmarked examination scripts that were burnt.” On the cause of the inferno, Maimako said investigation had commenced, adding that “nothing has been confirmed yet. We are still investigating.” The vice chancellor said the school was already working with federal authorities toward establishing a main fire station since the mini fire station in t...

UK gets new prime minister Wednesday

Britain Home Secretary Theresa May to be officially unveiled as UK’s new Prime Minister on Wednesday David Cameron is to step down as Prime Minister on Wednesday after Prime Minister’s Questions. Theresa May will succeed him. An eurozone’s top official says it’s important that Britain’s next prime minister gets on with sorting out the implications of Britain’s decision to leave the European Union as soon as possible, reports Associated Press. Speaking after it became apparent that Theresa May could replace David Cameron as soon as this week, Jeroen Dijsselbloem said the next British prime minister will have to “find solutions for the Brexit which has been causing a lot of problems particularly for the U.K., but also for Europe.” He said that the “sooner we can sort out this problematic situation the better.” Dijsselbloem spoke ahead of a meeting of the eurozone’s 19 finance ministers in Brussels. Though Britain’s decision to leave the EU isn’t a primary topic of discussion, the ...

Global Naija Info

Search This Blog