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3 Apr 2016

FG Retains Petrol Price At N86.50 For Q2

The federal government has retained the pump price of petrol at the prevailing N86.50 for oil marketers and N86 for retail outlets belonging to the Nigerian National Petroleum Corporation (NNPC), for the second quarter (Q2), 2016.
This was announced yesterday by the Petroleum Products Pricing Regulatory Agency (PPPRA) in a statement by its head, Corporate Service, Lanre Oladele. This is contrary to expectations that the price might be reviewed downwards for Q2 in view of the fact that petrol is currently overpriced at the prevailing prices, resulting to government saving about N100 billion monthly in over-recovery from retailers of the product.
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, disclosed in a recent statement that “since January, 1 2016, the NNPC have been able to eliminate subsidy payments by managing prices at current levels through price modulation, which has resulted to savings of over N100 billion monthly for the nation.”
Meanwhile, the statement by the PPPRA also disclosed that the NNPC, has been allocated 41.73 per cent of the total import quota for the second quarter of 2016, while other marketers got a total alloca-tion of 58.27 per cent. This is against the allocation formula for Q1, where the NNPC was allocated 78 per cent and other marketers 22 per cent.
The decision to reduce the NNPC’s allocation for Q2 may have been informed by the lingering fuel scarcity which has exposed that fact that the corporation is struggling to keep up with being the sole importer of petrol, and Kachikwu’s revelation that the development has been a burden on the corporation.
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