Is NNPC preparing grounds for subsidy removal?
In January 2013, when the federal government removed the subsidy on petrol, the opposition APC led Nigerians to condemn and protest the move, forcing the Jonathan administration to reverse the policy.
Now, a few weeks before it takes over the reins of governance, it seems the same opposition party is subtly working towards that same end of subsidy removal, as covert moves are being made to convince Nigerians that subsidy has to go.
In one of such seeming moves, the Nigerian National Petroleum Corporation (NNPC) has stated that continued payment of subsidy on petroleum products, especially PMS, as being done by the government needs to be stopped, because it is not sustainable, and impacts negatively on the nation’s economy.
This was the summation of the Group Coordinator, Corporate Strategy and Planning, NNPC, Mr. Timothy Okon, while speaking at the 2015 Oloibiri Lecture Series and Energy Forum organised by the Society of Petroleum Engineers in Abuja.
He noted that when crude oil prices came down to about $40 per barrel, subsidy was not paid during that period as the landing cost of the product was either equal of even lower than its market value.
Okon explained that subsidy on petrol creates uneven distribution of revenue, round tripping and unnecessary carry-over of funds from one year to another in a manner that was difficult to control by the Federal Government.
“So, from the technical analysis made, it is obvious that subsidy is real. And from our analysis, we look at it as something that should go because it is not sustainable,” he said.
Subsidy is the difference between the Expected Open Market Price of fuel and the actual or retail price that is paid by consumers for the product at petrol stations as regulated by the Department of Petroleum Resources.
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April 24, 2015 at 4:50 am
We have been waiting a long time. Silly sissies. Bring it on!!! If we don’t like it, wr shall yet Occupy the hell out of Nigeria.
April 24, 2015 at 7:47 am
i juts dont get all this….
April 24, 2015 at 7:48 am
all this yama yama people