Petrol subsidy may climb to N3tn in one year – NNPC subsidiary

The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, has said the annual subsidy on Premium Motor Spirit (petrol) will rise to N3tn if the current market realities persist. The Managing Director, PPMC, Mr Isiyaku Abdullahi, said this on Wednesday at a panel session during the 15th OTL Africa Downstream Week 2021 in Lagos. “At $80 crude oil, 60 million litres daily consumption and N411/$1 forex, PMS under-recovery per litre will be N138/litre. Daily PMS under-recovery will be N8.3bn. Annual PMS under-recovery will escalate to N3tn,” he said. The PUNCH had exclusively reported on October 12 that the sharp rise in global oil prices to record highs had pushed the subsidy cost being incurred by the Federal Government to N8.28bn daily. The subsidy, which the NNPC prefers to call ‘value shortfall’ or ‘under-recovery’, resurfaced in January this year as the government left the pump price of petrol unchanged at N162-N165 per litre despite the increase in oil prices. The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product …

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NNPC and burden of ‘subsidy’

Until last week when it experienced a slip, crude oil price enjoyed some form of stability, peaking at $72.83 per barrel last June – the highest since May 20, 2019. Earlier in the week, oil prices rose more than five per cent as a weaker dollar and strong global equities markets boosted crude futures after seven days of declines. Brent crude climbed $3.64, or 5.6 per cent, to $68.82 a barrel. For the country, the rising price of crude represents a double-edged sword. While it guarantees increased revenue for the country, on the flip side, it constitutes a drain on the same revenue earned. This is because of the continued dependence on importation of petroleum products for domestic consumption, especially in subsidy payment to marketers. Since March, this year, the Nigerian National Petroleum Corporation (NNPC) has held the brakes on fuel price increase as was the tradition prior to this period. This, therefore, presupposes that the corporation has been subsidising the product heavily. Last Monday, the landing cost of Premium Motor Spirit (PMS) petrol, was put at N249/ litre. Although …

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Fuel price remains until FG, labour end negotiations – PPPRA

The Petroleum Products Pricing Regulatory Agency on Sunday said the Petroleum Industry Act had signaled the full deregulation of the downstream oil sector. It was, however, quick to state that the negotiations between the Federal Government and labour would minimise the effect of subsidy removal upon full deregulation of the sector. The Executive Secretary, PPPRA, Abdulkadir Saidu, who said this in a statement issued in Abuja, stated that petrol price would be adjusted in a way that it would not cause hardship on consumers. He said, “There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector. “However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS. “The current price will remain until negotiations with organised labour, which will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses, is concluded.” Saidu said the PIA had provided legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters. …

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Petrol price negotiation still ongoing, says NNPC

The Nigerian National Petroleum Corporation (NNPC) Thursday said state governors do not run the affairs of the corporation, stressing that negotiation to determine a new pump price of petrol was still ongoing between the organised labour and the Federal Government. It added that there was no official announcement of any price hike for the product. Kaduna State Governor, Mallam Nasir el-Rufai was yesterday quoted as saying that there was a recommendation from the Nigeria Governors’ Forum that petrol should sell for between N380 to N408 per litre. The recommendation was a request for the complete removal of the subsidy on petrol. With the removal, the product would be at the mercy of demand and supply. But the NNPC, Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, told The Nation on phone that it was not the responsibility of state governors to run the corporation. “I can’t react to that. You know how the thing runs: it is not the state governments that will determine what we do in our Corporation. It is a government (Federal) thing. “And as …

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Nigerians To Pay N234 Billion Taxes Monthly With Petrol At N385/litre As Poverty And Inflation Is Set to Worsen

With Governors backing a new price of petrol of N385 per litre, Nigerians will be forced to pay more as inflation and poverty will worsen in coming months. According to a report by Guardian Nigeria, the masses wil face very serious financial challenges in the coming months. Attempts to remove subsidy on the Premium Motor Spirit (PMS) had severally been stalled with the government and organised labour locked in endless negotiation. But on Wednesday night, the cash-starved governors recommended the immediate removal of petrol subsidy and proposed an over 130 per cent pump price increase, from N162 per litre to between N380 and N408.5. Stakeholders have raised questions on how the governors arrived at their decisions, adding that the move implies price-fixing, which is against the principle of deregulation. They are also worried about the impact of such development on the country’s inflation and the purchasing power of Nigerians already affected by the growing devaluation of the naira. They insisted that the recommended pump price was coming at a time the masses needed more support. They also described the price …

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Increase Of Pump Price Of Fuel To N212 Direct Invitation For Mass Protest -PDP Warns

…..Insists fuel should not sale above N70 per litre By Ogechi Okorie Abuja (Precise Post) – The Peoples Democratic Party has reacted to the attempt to jack up the pump price of the premium motor spirit, warning that any increase of pump price of fuel to N212  per litre by President Buhari-led APC administration would amount to a direct invitation for mass protest in the country. According to the statement released in series of tweets via it’s twitter handle, the PDP says any contemplation for N212 pump price would be pushing Nigerians to the wall; a situation that is capable of worsening an already tensed situation and lead to economic and social crisis in the country. “Our party held that the N212 per liter reportedly contemplated in the March pricing template by the APC administration, is wicked, insensitive, and callous. It is a barefaced fact that there is no way that Nigerians can survive such hike in fuel price, which will worsen the already agonizing economic situation in the country, the party said. The party maintained that with an honest …

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Hike In Pump Price, Electric Tariff: FG Resumes Negotiation With Labour

By Ogechi Okorie Abuja (Precise Post) – The Federal Government on Monday resumed its meeting with the organised Labour over the issues of increases in the pump price of petrol and electricity tariff hike. The meeting had been adjourned in December last year, with hopes that it will be reconvened earlier in 2021. Dr Chris Ngige the Minister of Labour and Boss Mustapha the Secretary to the Government of the Federation (SGF), are the two ministers representing the federal government at this meeting. At the opening of the meeting, Dr Ngige said the government’s side of the bargain has received reports from the committee set up to look into some of the demands of the labour movements. Similarly, Boss Mustapha also noted that the committees set up last year will be presenting their findings during the meeting. The SGF also assured the labour leaders that the government is ready to implement the overall agreement that will be reached at the end of the day so that industrial actions will be minimized. On his part, The President of the Nigerian Labour …

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UPDATED: FG announces reduction in fuel price to N162.44 per litre

The Federal Government has announced a reduction in the pump price of premium motor spirit, otherwise known as petrol, from N168 to N162.44 per litre with effect from December 14. The Minister of Labour and Employment, Dr Chris Ngige, disclosed this at the end of a meeting with labour leaders which began around 9 pm on Monday and ended at 1:30 am on Tuesday. The product presently dispenses at N168, following the decision of the Petroleum Products Marketing Company to increase the ex-depot price of petrol from N147.67 per litre to N155.17 per litre in November. The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots. The minister said a technical committee has been set up to ensure price stability in the industry. Ngige stated that the committee, which will report back to the larger house on January 25, will appraise the market forces and other things that would ensure stability in the industry. He said, “Our discussion was fruitful and the Nigerian National Petroleum Corporation which is the major …

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‘There’s A Limit To What Nigerians Can Tolerate,’ NLC Rejects Petrol Price Hike

The Nigeria Labour Congress (NLC) has demanded the immediate reversal of the pump price of Premium Motor Spirit (PMS), also known as petrol. In a statement on Monday by the NLC President, Ayuba Wabba, the union took a swipe at the government and condemned the increase in the price of the product. It stated that the recent hike in petrol pump price has worsened the level of pain and anguish in the country. According to the NLC, it is worrisome to make Nigerians continue to suffer for the failures of successive governments to properly manage the nation’s refineries. It added that the development has questioned the explanations made by the government on the payment of subsidy. READ ALSO: FG Links Recent Petrol Price Hike To Pfizer’s COVID-19 Breakthrough The union insisted that the nation would not have been in its present position if the government had been alive to its responsibilities. It warned that Nigerians have a limit to tolerate the continued increase in the price of refined petroleum products and other essential goods and services. On the way forward, …

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Again, NNPC Jack’s Up Price of Petrol Depot Price, See Marketers Selling Cost

Abuja (Precise Post) – The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation has raised the ex-depot price of Premium Motor Spirit, also known as petrol to N155.17 per litre from N147.67 per litre. The PUNCH reports that the PPMC disclosed this in an internal memo with reference number PPMC/C/MK/003, dated November 11, 2020, and signed by Tijjani Ali. The memo, a copy of which was seen by our correspondent, said the new ex-depot price would take effect from Friday. The ex-depot price is the price at which the product is sold by the PPMC to marketers at the depots. In its PMS price proposal for November, the PPMC put the landing cost of petrol at N128.89 per litre, up from N119.77 per litre in September/October. It said the estimated minimum pump price of the product would increase to N161.36 per litre from N153.86 per litre. The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, in a telephone interview with our correspondent, said the over N7 increase in ex-depot price would translate …

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Again, FG Increases Pump Price of Fuel to N151.56/Ltre

By Chris Udochukwu Abuja (Precise Post) – Again, the Federal Government has announce increase in pump price of petrol. The pump price has been increased to N151.56 per litre, with effect from (today) 2nd September 2020. This is contained in a statement released by the Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, NNPC. In a statement by D.O Abalaka,the PPMC stated: “Please be informed that a new product price adjustment has been effected on our payment platform. To this end, the price of Premium Motor Spirit (PMS) is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre.” Precise Post recalls that this is about the third time the federal government will alter the pump price within the year.

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