• Advertise
  • Opinion
  • Features & Interviews
  • Investigation
  • Contact
Tuesday, July 5, 2022
  • Login
No Result
View All Result
NEWSLETTER
The Lagos Today
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Big Brother Naija  Season 7 Premieres July 23 ..   As Winner Gets N100M Prize Money,

    Big Brother Naija Season 7 Premieres July 23 .. As Winner Gets N100M Prize Money,

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    CAF to launch $200 million African Super League in August 2023

    CAF to launch $200 million African Super League in August 2023

    Sanwo-Olu Grants Funke Akindele, Husband, 56 Others State Pardon

    Marriage Collapse: Funke Akindele Allegedly Chased Husband Away Because Of Infidelity

    Funke Akindele’s Marriage Crumbles Again As Hubby Confirms Seperation Rumours

    Funke Akindele’s Marriage Crumbles Again As Hubby Confirms Seperation Rumours

    WizKid, Tems Award Winning ‘Essence’ raking in over $1m in Estimated Streaming Revenues

    WizKid, Tems Award Winning ‘Essence’ raking in over $1m in Estimated Streaming Revenues

    2020 AFRIMA Postponed Till Next Year Over Covid-19

    AFRIMA 2022: Entry Submission Portal Closes on August 5

    Club Shooting: Burna Boy’s Police Escorts Say Bullets Fired Not from Their Guns

    Club Shooting: Burna Boy’s Police Escorts Say Bullets Fired Not from Their Guns

    AFRIMA Meets ECCAS, UNESCO in Gabon, Discusses Plans to Stimulate Africa’s Creative Economy

    AFRIMA Meets ECCAS, UNESCO in Gabon, Discusses Plans to Stimulate Africa’s Creative Economy

    The Musings of Africa’s Proverbial Dad: Chief Pete Edochie

    The Musings of Africa’s Proverbial Dad: Chief Pete Edochie

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

    Bookstores in Lagos

    Love Reading? See The Best Bookstores In Lagos

  • Things To Do
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Big Brother Naija  Season 7 Premieres July 23 ..   As Winner Gets N100M Prize Money,

    Big Brother Naija Season 7 Premieres July 23 .. As Winner Gets N100M Prize Money,

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    CAF to launch $200 million African Super League in August 2023

    CAF to launch $200 million African Super League in August 2023

    Sanwo-Olu Grants Funke Akindele, Husband, 56 Others State Pardon

    Marriage Collapse: Funke Akindele Allegedly Chased Husband Away Because Of Infidelity

    Funke Akindele’s Marriage Crumbles Again As Hubby Confirms Seperation Rumours

    Funke Akindele’s Marriage Crumbles Again As Hubby Confirms Seperation Rumours

    WizKid, Tems Award Winning ‘Essence’ raking in over $1m in Estimated Streaming Revenues

    WizKid, Tems Award Winning ‘Essence’ raking in over $1m in Estimated Streaming Revenues

    2020 AFRIMA Postponed Till Next Year Over Covid-19

    AFRIMA 2022: Entry Submission Portal Closes on August 5

    Club Shooting: Burna Boy’s Police Escorts Say Bullets Fired Not from Their Guns

    Club Shooting: Burna Boy’s Police Escorts Say Bullets Fired Not from Their Guns

    AFRIMA Meets ECCAS, UNESCO in Gabon, Discusses Plans to Stimulate Africa’s Creative Economy

    AFRIMA Meets ECCAS, UNESCO in Gabon, Discusses Plans to Stimulate Africa’s Creative Economy

    The Musings of Africa’s Proverbial Dad: Chief Pete Edochie

    The Musings of Africa’s Proverbial Dad: Chief Pete Edochie

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

    Bookstores in Lagos

    Love Reading? See The Best Bookstores In Lagos

  • Things To Do
No Result
View All Result
The Lagos Today
No Result
View All Result
Home National

FG Likely To Re-introduce Subsidy as Crude Oil Nears $56 Per Barrel

by The Lagos Today
January 11, 2021
in National
5 min read
0
0
FG Likely To Re-introduce Subsidy as Crude Oil Nears $56 Per Barrel
Share on FacebookShare on Twitter

Since the November 2020 hike in petrol pump price, the international oil benchmark, Brent crude, has been on an increase, rising from $41.51 per barrel to close at $51.22 per barrel on December 31.


In December 2020, fuel marketers expected another upward rise in the country, to reflect the further rise in crude oil prices.
However, a shocking N5 reduction in petrol price, effective December 14, was announced by the Federal Government.


Crude oil price accounts for a large amount of the final cost of petrol, and the country has continued to spend so much on petrol imports for many years amid low domestic refining capacity.


The Minister of State for Petroleum Resources, Timipre Sylva, had said in September last year that the Federal Government had stepped back in fixing the price of petrol, adding that market forces and crude oil price would determine the cost of the product.
The Federal Government removed petrol subsidy in March 2020 after reducing the pump price of the product to N125 per litre from N145 on the back of the sharp drop in crude oil prices. The price reduction lasted till June.


Nigerians saw increases in the pump prices of petrol in four months, rising from N121.50–N123.50 per litre in June to N140.80-N143.80 in July, N148-N150 in August, N158-N162 in September and N163-N170 in November.


Brent, the international oil benchmark, has risen by about 35 per cent since November 13 when the pump price of petrol was last increased. It closed at $55.99 per barrel on Friday, its highest level in 11 months.


Going by the petrol pricing template of the Petroleum Products Pricing Regulatory Agency, the landing cost of petrol rose from an average of N143.60 in December to N158.53 per litre on January 7, with the expected open market price (retail price) being N181.53 per litre.
The product is currently being sold at between N160 and N165 per litre at many filling stations in Lagos.


The cost of petrol quoted on Platts rose to $480.25 per metric tonne (N139.67 per litre, using N390/$1) last Thursday from an average of $430.107 per MT (N125.09 per litre) in December. The cost of petrol averaged $391.75 per MT (N113.24 per litre) in July, according to PPPRA’s template.


Apart from the increase in global crude oil prices, the devaluation of the naira last year also led to a significant rise in the cost of imported petrol.


The PPPRA used an exchange rate of N306.90/$1 on January 14, 2020 to calculate the cost of petrol, while N387.63/$1 was used on July 31.


The naira closed at 393.50 against the dollar on Friday at the Investors’ and Exporters’ Foreign Exchange Window, and 472/$1 at the parallel market.


As of January 7, the cost of petrol plus freight stood at $500.72 per MT, translating to N145.62 per litre.


Other cost elements that make up the landing cost include lightering expenses (N4.57), insurance cost (N0.21), Nigerian Ports Authority charge (N2.38), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N1.33).


The pump price is the sum of the landing cost, wholesale margin and the distribution margins. The wholesale margin is N4.03 while the distribution margins comprise transporters allowance (N3.89), retailer (N6.19), bridging fund (N7.51), marine transport average (N0.15), and admin charge (N1.23).


The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.


Private oil marketing companies have continued to lament that their inability to access foreign exchange at the official rates has hampered efforts to resume petrol importation.


If the pump price of petrol is left unchanged amid the rise in oil prices, it means the NNPC would again bear the latest subsidy cost on behalf of the government as it did for several years before its removal last year.


‌“There is currently subsidy, but it is being absorbed by the government through the NNPC,” the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told our correspondent.
He recalled that he said in December that petrol pump price was moving closer to N180 per litre, adding that with the current price of crude oil, petrol subsidy would gulp about N800m daily with an average consumption level of 40 million litres.


He said, “Because of the volatility of petrol in the Nigerian political landscape, government does not have the boldness to allow full deregulation of petrol because of the spiral effects on Nigerians, and bearing in mind that Nigerians are in very hard times.”


Osatuyi said, “But the government is supposed to come out and present the subsidy to the National Assembly. They should tell Nigerians that we are going back to subsidy. But because of the loans from the IMF and World Bank that they got with the condition that petrol should be deregulated, I believe the government is trying to manage the problem.


“If we are going to do genuine deregulation, there must be a level playing field for the players. We are not where we are supposed to be; there is still some dark, hidden elements in our ‘deregulation’.


“We are practising monopolistic deregulation – where one player is on the field and it is the goalkeeper, the defender and the referee.”
The President, Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Billy Gillis-Harry, stressed the need for deregulation to be properly done.


He said, “The concern I have is that we are not getting it right. We must think inwards and grow our local production capacity. I don’t know why our refineries should not work.


“Deregulation is the way to go; we want the sector to be deregulated. But we need to do it rightly. There should be a level playing field for all operators; everybody should be able to access forex at the same rate.”


While opposing the return to subsidy, he said, “We call on the government to fast-track the regulatory process to ensure that deregulation is in place.”
Recall that on 8th September 2020, the Federal Government’s removal of petrol subsidy and the increase in electricity tariff were in line with reforms being sought by the International Monetary Fund and the World Bank.


“The recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not reemerge,” the Federal Government told the IMF in the letter of intent dated April 21, 2020 with respect to its request for emergency financial assistance of $3.4bn.


In July, Sylva said in a statement that the Federal Government had reached a conclusion that it could no longer bear the burden of petrol subsidy.

Follow us on social media
  • Facebook
  • Twitter
  • Instagram

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...
Previous Post

Quebec locks down further, fearing a collapse of its hospitals

Next Post

Oilfield Bid: FG To Generate N7.9bn From 161 Finalists

The Lagos Today

The Lagos Today

Related Posts

Lagos-Abidjan Highway Corridor Is Recording Progress, Says Osinbajo

Lagos-Abidjan Highway Corridor Is Recording Progress, Says Osinbajo

by kindness Ike
July 5, 2022
0

Vice President Yemi Osinbajo said that progress is being made on the Lagos-Abidjan Corridor and on issues around the movement...

Over 2,000 retirees can’t get monthly pensions – PenCom

Over 2,000 retirees can’t get monthly pensions – PenCom

by kindness Ike
July 5, 2022
0

More than 2,000 retirees cannot be placed on monthly pension payments and have left the Contributory Pension Scheme in the...

Next Post
Oilfield Bid: FG To Generate N7.9bn From 161 Finalists

Oilfield Bid: FG To Generate N7.9bn From 161 Finalists

Please login to join discussion

Recommended

Court orders Orji Kalu’s release from Kuje Prison

Court orders Orji Kalu’s release from Kuje Prison

2 years ago
Nigerian National Brought to U.S. to Face Charges of Conspiring to Launder Hundreds of Millions of Dollars from Cybercrime Schemes

Nigerian National Brought to U.S. to Face Charges of Conspiring to Launder Hundreds of Millions of Dollars from Cybercrime Schemes

2 years ago

Popular News

    Newsletter

    Connect with us

    Tags

    #EndSARS #EndSARS Protests 2023 Elections 2023 polls 2023 Presidency ACCIDENT All progressives Congress APC Babajide Sanwo-Olu Bitcoin CBN Central Bank of NIgeria China Coronavirus pandemic Covid-19 Covid-19 in Lagos Covid-19 in Nigeria Covid-19 Vaccine Covid-19 Worldwide Cryptocurrency Donald Trump Dubai EFCC Federal Government Federal Government of Nigeria Fraud Gov. Sanwo-Olu Insecurity Lagos state Lagos State Government Lagos State House of Assembly Lagos State Police command LASEMA Latest jobs in lagos Lekki Tollgate Shooting Muhammadu Buhari Murder NDLEA Nigeria Rape Russia Strike action UK United states US

    News

    • Business
    • National
    • Politics
    • Tech

    Opinion

    • Editorials
    • Today’s Opinion
    • Letters
    • Sunday Review
    • Advertise
    • Opinion
    • Features & Interviews
    • Investigation
    • Contact

    © 2020 The Lagos Today - Nkali.

    No Result
    View All Result
    • Home
    • News
      • Lagos News
      • National News
      • World News
    • Entertainment
    • Opinion
    • Business
    • Features & Interviews
    • Best Of Lagos
    • Things To Do

    © 2020 The Lagos Today - Nkali.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms bellow to register

    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    %d bloggers like this: