Petrol Landing charges now lesser to Pump Price (Why is it still sold @ N97?)
Goodmorning people. Knowing fully well what the international market has to offer in terms of oil prices now should alert the government that this is the right time to remove subsidy on Petroleum products and people can buy motor spirit at about the same or even reduced price than it is being purchased at the moment but NO. A provision for subsidy was also made for the payment in the 2015 budget and you tell Nigerians that this government has vision? I beg to differ...
Against the backdrop of the fall in global oil prices, the landing cost of Premium Motor Spirit, commonly known as petrol, has dropped to N82.57 per litre as of Thursday, December 18, from N127.57 on November 3.
The Federal Government’s spending on petrol subsidy has, therefore, fallen to a five-year low of N1.06 per litre as of that, compared to N44.94 on November 3, according to data obtained from the Petroleum Products Pricing Regulatory Agency.
Subsidy refers to the money paid, usually by government, to keep prices below what they will otherwise be in a free market system.
For instance, the Expected Open Market Price (retail price) of petrol is N98.06 per litre as of December 18, but the regulated price is N97. The difference is subsidy.
As of November 3, the retail price of petrol was N141.94 per litre, according to the PPPRA.
Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state. The fall in oil price has triggered the decline in the landing cost of petrol.
There have been calls in some quarters on the government to reduce the pump price of refined petroleum products as the price of crude oil, which constitutes a major component in the pricing template, have plunged by more than 45 per cent.
Against the backdrop of the fall in global oil prices, the landing cost of Premium Motor Spirit, commonly known as petrol, has dropped to N82.57 per litre as of Thursday, December 18, from N127.57 on November 3.
The Federal Government’s spending on petrol subsidy has, therefore, fallen to a five-year low of N1.06 per litre as of that, compared to N44.94 on November 3, according to data obtained from the Petroleum Products Pricing Regulatory Agency.
Subsidy refers to the money paid, usually by government, to keep prices below what they will otherwise be in a free market system.
For instance, the Expected Open Market Price (retail price) of petrol is N98.06 per litre as of December 18, but the regulated price is N97. The difference is subsidy.
As of November 3, the retail price of petrol was N141.94 per litre, according to the PPPRA.
Nigeria, Africa’s top oil producer, relies on importation for most of its fuel needs as the country’s refineries are in a poor state. The fall in oil price has triggered the decline in the landing cost of petrol.
There have been calls in some quarters on the government to reduce the pump price of refined petroleum products as the price of crude oil, which constitutes a major component in the pricing template, have plunged by more than 45 per cent.
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