By Oluwagbenga Bankole
Despite
the fact that most filling stations in the country sell a litre of petrol above
the regulated price, the subsidy on Premium Motor Spirit (PMS) peaked
at N1, 851,600,000 last week for daily consumption of the product
within the country.
According
to the latest figure from the Petroleum Products Pricing Regulatory Agency
(PPPRA), the Federal Government is paying N46.29 as subsidy for every litre of
petrol consumed in Nigeria.
The
PPPRA pricing template released on June 5, 2015, revealed that the Expected
Open Market price (EOMP) or total cost for petrol was N 133.29 per litre.
This
was against a retail regulated price of N87 per litre. The difference between the
EOMP and the retail price is therefore N46.29.
According
to the Nigerian National Petroleum Corporation, Nigeria consumes about 40
million litres of the PMS daily.
The
cost elements that make up the landing cost include the product’s offshore
cost, N105.86; trade margin, N1.47; lightering expenses, N4.19; NPA, N0.77;
financing, N1.71; jetty depot throughput charge, N0.8; and storage charge, N3.
According
to the agency, the cost of the product’s distribution margin, retailers get
N4.6; transporters, N2.99; dealers, N1.75; bridging cost is N5.85; marine
transport average, N0.15; and the admin charge, N0.15. The sub-total margin
stands at N15.49.
When
added to the landing cost of N105.86, an EOMP of N133.29 per litre is arrived
at. But this is subsidised and a flat official rate of N87 per litre is given.
Meanwhile,
investigation by our correspondent revealed that many independent marketers
still sell a litre of petrol above N87.
Aside
from the NNPC petrol stations and some outlets belonging to major oil marketers
such as Conoil,
Total, Mobil, Oando, Forte Oil, most other filling stations
sell the product above the regulated price despite the fact that the subsidy by
the Federal Government is still in place.
Stakeholders
in the industry on so many occasions have implored the federal government to
deregulate the downstream sector. Some Nigerians are also of the opinion that
fuel marketers were getting richer at the expense of consumers, who empty their
savings to fuel their vehicles and generators.
Speaking
exclusive with TOTALNEWS247, the Managing Director of Platform Petroleum
Limited, Engr. Osa Owieadolor acknowledged that if there is any problem the
current government should address speedily, it is the problem of the
downstream.
He
said that country had been held hostage in the last one month by cartel of
marketers and people playing in that sector, emphasizing that deregulation is
the solution to the problem.
He
also stated that with deregulation you can guarantee product availability.
The
Managing Director of Platform Petroleum Engr. Osa Owieadolor in this
interview with OLUWAGBENGA BANKOLE speaks on the progress made
so far on the company’s Marginal field, the problem being faced by
Marginal Field operators, what President Buhari should do in his first
100 days in office and other sundry issues. Excerpts - See more at: http://www.newsdirectonline.com/newstory.php?ID=11830#sthash.WPZjQzN7.dpuf
The
Managing Director of Platform Petroleum Engr. Osa Owieadolor in this
interview with OLUWAGBENGA BANKOLE speaks on the progress made
so far on the company’s Marginal field, the problem being faced by
Marginal Field operators, what President Buhari should do in his first
100 days in office and other sundry issues. Excerpts - See more at: http://www.newsdirectonline.com/newstory.php?ID=11830#sthash.WPZjQzN7.dpuf
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