Nigeria may be losing
the gains of increases in the international oil prices as the Federal
Government subsidy on fuel has risen to N2.4 billion daily in May, from
N774 million in March, 2018, also as a result of the high price of crude
oil in the international market.
the gains of increases in the international oil prices as the Federal
Government subsidy on fuel has risen to N2.4 billion daily in May, from
N774 million in March, 2018, also as a result of the high price of crude
oil in the international market.
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fuel marketers
fuel-pump
Unlike in March, this year, when the price of crude oil hovered at $66
per barrel, it had hovered between $75 and $80 per barrel since last
month, thus pushing up landing cost of the refined product in the
domestic markets for finished product importers like Nigeria.
fuel marketers
fuel-pump
Unlike in March, this year, when the price of crude oil hovered at $66
per barrel, it had hovered between $75 and $80 per barrel since last
month, thus pushing up landing cost of the refined product in the
domestic markets for finished product importers like Nigeria.
The Petroleum Products Pricing
Regulatory Agency, PPPRA, stated that without the government subsidy,
the price of petrol could have been as high as N205 per litre in the
domestic market.
According to PPPRA, the price of the commodity appreciated by 8.47 per
cent from N189 per litre recorded in April 25, 2018 to N205 per litre as
at May 16, 2018.
The PPPRA report disclosed that during the week under reference, between
May 11 and May 16, 2018, oil prices continued to soar, stating that the
average price for Brent Dated was $77.92 per barrel; Nigeria’s Bonny
Light was $78.08 while West Texas Intermediate, WTI, was $60.27 per
barrel.
Price of petrol is still fixed at a maximum of N145 per litre, meaning
that the NNPC is currently paying N60 as under recovery for a litre of
the commodity.
Regulatory Agency, PPPRA, stated that without the government subsidy,
the price of petrol could have been as high as N205 per litre in the
domestic market.
According to PPPRA, the price of the commodity appreciated by 8.47 per
cent from N189 per litre recorded in April 25, 2018 to N205 per litre as
at May 16, 2018.
The PPPRA report disclosed that during the week under reference, between
May 11 and May 16, 2018, oil prices continued to soar, stating that the
average price for Brent Dated was $77.92 per barrel; Nigeria’s Bonny
Light was $78.08 while West Texas Intermediate, WTI, was $60.27 per
barrel.
Price of petrol is still fixed at a maximum of N145 per litre, meaning
that the NNPC is currently paying N60 as under recovery for a litre of
the commodity.
The Group General Manager, Group
Public Affairs Division of the NNPC, Mr. Ndu Ughamadu said: “The
explanation is simple. The higher the price of crude oil the higher the
price of petroleum products in the international market. It should also
be noted that this has also impacted on the landing cost, and by
extension our under recovery.”
Public Affairs Division of the NNPC, Mr. Ndu Ughamadu said: “The
explanation is simple. The higher the price of crude oil the higher the
price of petroleum products in the international market. It should also
be noted that this has also impacted on the landing cost, and by
extension our under recovery.”
The situation in Nigeria is worsened by smuggling,
as NNPC is now forced to subsidize the product for neighboring
countries.
Group Managing Director of the NNPC, Dr Maikanti Baru who led top
management team of the corporation to visit Comptroller-General of
Nigeria Customs Service, Col. Hameed Ali (retd), recently, had blamed
the increase in fuel consumption on massive smuggling of petroleum
products to neighbouring countries.
Baru had also raised an alarm on the proliferation of fuel stations in
communities with international land and coastal borders across the
country, insisting that the development had energized unprecedented
cross-border smuggling of petrol to neighbouring countries, making it
difficult to sanitise the fuel supply and distribution matrix in the
country.
as NNPC is now forced to subsidize the product for neighboring
countries.
Group Managing Director of the NNPC, Dr Maikanti Baru who led top
management team of the corporation to visit Comptroller-General of
Nigeria Customs Service, Col. Hameed Ali (retd), recently, had blamed
the increase in fuel consumption on massive smuggling of petroleum
products to neighbouring countries.
Baru had also raised an alarm on the proliferation of fuel stations in
communities with international land and coastal borders across the
country, insisting that the development had energized unprecedented
cross-border smuggling of petrol to neighbouring countries, making it
difficult to sanitise the fuel supply and distribution matrix in the
country.
He had revealed that detailed study conducted by the NNPC indicated
strong correlation between the presence of the frontier stations and the
activities of fuel smuggling syndicates.
Providing a detailed presentation of the findings, the NNPC boss had
noted that 16 states, having among them 61 local government areas with
border communities, account for 2,201 registered fuel stations.
He had said: “NNPC is concerned that continued cross-border smuggling of
petrol will deny Nigerians the benefit of the Federal Government’s
benevolence of keeping a fix retail price of N145 per litre, despite the
increase in PMS open market price above N171 per litre.”
strong correlation between the presence of the frontier stations and the
activities of fuel smuggling syndicates.
Providing a detailed presentation of the findings, the NNPC boss had
noted that 16 states, having among them 61 local government areas with
border communities, account for 2,201 registered fuel stations.
He had said: “NNPC is concerned that continued cross-border smuggling of
petrol will deny Nigerians the benefit of the Federal Government’s
benevolence of keeping a fix retail price of N145 per litre, despite the
increase in PMS open market price above N171 per litre.”
Responding,
Customs’ Comptroller-General had said the service would work with the
NNPC to stem the tide of cross-border smuggling of petroleum products,
noting that all hands must be on deck to ensure the economic survival of
the country.
Customs’ Comptroller-General had said the service would work with the
NNPC to stem the tide of cross-border smuggling of petroleum products,
noting that all hands must be on deck to ensure the economic survival of
the country.
