***Retains Pump Price
Payment of subsidy on premium motor spirit, PMS, also known as petrol has been returned by the Federal Government.
It was gathered that the FG on Saturday recommenced the payment of subsidy on fuel, which was earlier stopped in January 2016.
Aproko247 learnt the commodity is subsidised by N5.84 per litre consumed in Nigeria.
From what we gathered, the current official pump prices of petrol would remain at N86 per litre at filling stations owned by the Nigerian National Petroleum Corporation, NNPC, while those operated by independent marketers would dispense the product at N86.5 per litre.
A statement issued by the Petroleum Products Pricing Regulatory Agency, PPRA, disclosed that the Expected Open Market Price, EOMP, 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.
In the same vein, the template for NNPC-run stations showed that the government was paying N5.80 per litre as subsidy, as the EOMP for outlets in this category was N91.80 per litre as against an official rate of N86 per litre.
On the retained pump price of petrol, 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.”
The EOMP is the actual cost of petrol without subsidy and comprises of the landing cost of the product as well as its subtotal margins like transporters charge, admin fee, dealers cost, bridging fund, etc.
The PPRA said it is not planning to increase the petrol price and urged the general public to ignore such rumour because prevailing market indicators do not support such.
“PPPRA was working hard with other sister-organisations to ensure that the current supply and distribution challenges were resolved within the coming days,” the agency assured.
