On Saturday 2nd April, the Federal Government reversed the non-payment of subsidy on petrol, as it subsidized the product by N5.84 for every litre. Subsidy was removed in January after the government did a review of the pricing template of the product. However, they have decided to place it back, considering the ripple effect the singular act would impact on fuel circulation and consumption across the country.
The FG also announced that the current official pump prices of petrol is now N86 per litre when purchased from the Nigerian National Petroleum Corporation, NNPC, and N86.5 per litre from outlets operated by other oil marketers. The government further said petrol scarcity would end in a few days, although no specific date was given.
From the released figures of latest pricing templates by the Petroleum Products Pricing Regulatory Agency, PPPRA, which is responsible for regulating the prices of petrol and kerosene, the Federal Government was paying N5.84 as subsidy on every litre of petrol sold at non-NNPC filling stations.
Meanwhile, 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. Also, the EOMP for outlets in this category was N91.80 per litre as against an official rate of N86 per litre.
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 urged motorists to avoid fighting in queues at fuel stations, stressing that PPPRA was working hard with other sister-organisations to ensure that the current supply and distribution challenges were resolved within the coming days. This is indeed a whiff of fresh air for Nigerians who have had sleepless nights in hot fan-less houses due to the unavailability of fuel in the past few weeks.