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Fuel subsidy removed in Nigeria. Effective Jan 1, 2012, petrol will now sell for N141 per litre
| January 02, 2012
Fuel subsidies have been removed in Nigeria. Effective from Jan 1, 2012 a litre of petrol is to sell for N141 instead of the previous price of N65 per litre. In a statement, the Petroleum Products Pricing Regulatory Agency (PPPRA) said' â Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004. âBy this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly and posted on the PPPRA website. âPetroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012. Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding. The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way. The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.â The Federal Government has claimed that Nigeria has paid 3.65 trillion naira in fuel subsidies since 2006 and removing the fuel subsidy will save about 1.2 trillion naira ($7.5 billion) annually. However, the measure has remained unpopular in Nigeria with most citizens saying that cheap fuel is the only benefit they get from living in Nigeria with the level of decay of the infrastructure in the country. Also, there have been complaints that the prices of goods and services will also increase and the brunt will be felt more by the masses. There are already reports that taxi fares have already doubled in Abuja, few hours after the announcement.

(9) Comment


"The views and opinions expressed in these comment(s) or article(s) do not necessarily reflect the views or opinions of NGEX, its partners or its affiliates."
Emilia    Lagos, Nigeria    January 13, 2012
Oando Oil, CONOIL, African Petroleum and MRS
Oil are among the powerful players in the
petroleum sector that have shared over
N3.655 trillion between 2006 and
... September 2011 in pursuit of importation of
refined petroleum products.

This was revealed today in Abuja by the
Nigerian Senate joint Committee on Petroleum
(Downstream), Appropriation and Finance.
Senator Magnus Ibe, the chairman of the
committee, also disclosed that some 100
companies in the downstream sector and in
construction, shared over N1.426 trillion
between January and August 2011 alone.
Oando Oil is owned by Wale Tinubu, Mike
Adenuga owns CONOIL, Femi Otedola owns
AP, while MRS Oil is run by Aliko Dangote's
brother, Sayyu Dantata. Other key players
named today include Pinaccle Construction
Ltd, as well as Integrated Oil and Gas, which is
owned by a former Minister of the
Interior, Capt. Emmanuel Iheanacho.

The full list as read out by Senator Abe, is as
1. Oando Nigerian Plc. â N228.506 billion
2. MRS âN224.818 billion
3. Pinnacle Construction-N300 billion
4. Enak Oil & Gas âN19.684 billion
5. CONOIl â N37.960 billion
6. Bovas & Co. Nig. Ltd. â N5.685 billion,
7. Obat N85 billion and AP; N104.5billion.
8. Folawiyo Oil - N113.3 billion
9. IPMAN Investment Limited- N10.9billion
10. ACON - N24.1billion
11. Atio Oil-N64.4billion
12. AMP- N11.4billion
13. Honeywell-N12.2billion
14. Emac Oil- N19.2billion
15. D.Jones Oil-N14.8billion;
16. Capital Oil - N22.4 billion
17. AZ Oil- N18.613billion
18. Eterna oil- N5.57 billion
19. Dozil oil- N3.375 billion
20. Fort oil-N8.582 billion.
21. Integrated Oil and Gas- N30.777 billion!


(((((WHO IS FOOLING WHO))))).Which Nigeria!!!
Tope Jones    Mushin, Nigeria    January 12, 2012
Our FG must be purnished and the bad leaders needs to back off their bad ways of cheating the Nigerians, this subsidy is a cheat and scam to Nigerians. We all must speak in one voice to overcome this badluck in this country. We expect a Goodluck and not Bad luck in this country. Shame to all our leaders
Aivis Christopher;    Benin City; Edo state, Nigeria    January 11, 2012
Just seven reason out of million reasons:
(1), the subsidy is scam! Our FG is 419, why? according to the experts and according to analysis of Prof Tam David West, former Petroleum minister,a litter of fuel cost N39.50k, so, what did govt subsidize? Believe me subsidy is a scan!

(2), Nigeria is one of biggest oil producer in the world, and largest oil producer in Africa, let's compare the price of other country fuel, for example in Venezuela a litter of fuel is N3.61, and they pay N95,639 as minimum wages. In Kuwait isN34.54 and N161,461 minimum wages, in S/Arabia fuel is N25.12 and minimum wages is N99,237. In Qatar is N34.54 also N101,250 as minimum wages, let's come back to Africa, Algeria sells fuel N63.55 per litter and pays N55,957 as minimum wages, even in Libya is N26.69 and minimum wages is N23,813. So why Nigeria? N141? And they can't even pay N18 as minimum wages! Nigeria sells higher than other OPEC country yet paid lowest minimum wages!

(3), their is pre-agreement between the FG and the labour leaders that before a Subsidy can be removed certain condition must be meet, that is, some infrastructure must put in places such as electricity, water, roads, railways etc and that new refinery must be build, where are all these things now?

(4),The only benefit Nigerian derived from government is subsidy(that is if their is) so, why will govt removes this only benefit?

(5), Insincerity of Nigeria government, assuming this subsidy removal is for our goods according to FG explanation, how do you want us to believe this? someone lies to you 99 times and you said you want to give him another chance to make it 100, if you do, it simply means you allow him to make you break the record of biggest fools whoever live! How do you want me to believe govt that spend billions dollars, N4.48 trillion in 2011, without a tangible changes, and that how they have being spending it. This year 2012 again planning to spend N4.769(6% increased). 72% to keep running the government rather than badly needed infrastructure project to create jobs and make economic growth.

(6), no doubt, Nigeria government are the most corrupt in the world, and all its policies is not in favour of masses but to make rich become richer and poor become poorer, that is why poverty increase in Nigeria per minutes, corruption is no more a crime in Nigeria but tradition, custom, system and way of live! Shall we continue like this?

(7), wastage, wrong spending, luxurious life of government while the citizen were suffering, imagine these;
----united states government has two aircraft, while Nigeria Government has nine(9) and recently voted money to buy another one, and british prime minister travel with british airline!
----british prime minister has only 2 official car, while Nigeria has 23 and budgeted N240million to buy another two bullet/bomb proved car this year!
----United state with over 500million population has only 24 ministers and 32 government parastatal and commissions while Nigeria with 160million has 42 cabinet minister and over 50 government parastatals with its attendant cost
----FG to spend #11.25billion on foreign trip in 2012. While we don't have a single good road.

----FG to build #4billion house for VP, Senate President & Speaker! While thousand Nigeria sleep under bridges and millions homeless and that money is enough to house thousands of nigerians.
----President and VP to eat #1billion food in 2012 while over 75% Nigeria can't afford to eat three time a day and that money is enough to improve agriculture in order to increase food production!

----N200million budgeted to water the garden of president while average Nigerian struggle to buy pure water to drink, N200m is enough to make water available for a state in Nigeria.

----N1,7 billion budgeted for president to buy fuel in 2012, and they expect poor man who struggle to buy fuel for N65 before to buy it now at rate of N141 per litter!
----Nigeria president moves in convoy of minimum of 25 cars while British Prime Minister goes to airport with only two car! And many Nigeria can't buy bicycle!
----US senators earn $6,000 while Nigeria senators earn N245 million annually and senate president N600 million annually,(N245 can pay 500 school teachers salaries and N600 million can pay 1,200 school teacher per annual)

----Nigeria senators, earn more than US president, a british parliament member are only entitled to 3rd class ticket to travel by rail!
----1st Lady furnish office with N5billion, if this was giving to 5 million Nigeria graduate to set up a business/self employed I'm very sure it will change the life of half of them if not all.

----Senate President receive #600million annually while we have more up 60million Nigeria without a tangible source of income and 18k minimum wages government can't afford to pay it!

The revolution has started let's fight together for the future of our dear country. Our fathers refused to fight yesterday that is why we're suffering today and if we don't fight for our right today our children will be victim tomorrow
OMOTAYO, J. A.    Lagos, NIGERIA    January 07, 2012
Both the Presidency and the PPPRA have taken Nigerians for a ride. Why? Look at the statistics again. First, N3.65 trillion was spent on subsidy since 2006. It can be rephrased: For 6 years (2006 - 2011), N3.65 trillion on subsidy could have been saved. Thus N0.608 trillion or N3.65/6 trillion could have been saved annually. This is simple arithmetic. Second, N1.2 trillion on subsidy will be saved annually. How did N0.608 trillion average spending suddenly translate into N1.2 trillion average spending? The import is that both the presidency and the PPPRA are either liars or mediocrities. God save Nigeria.
Micheal Ono    Kaduna, Nigeria    January 04, 2012
Removing Fuel Subsidy is not a crime but the president & his advisers need to check the economy of the country they are removing the subsidy from. Is their economy stable enough for the subsidy removal, what will happen to a person who earns N10,000 a month and normally spends N300 daily on transportation as @ last year, such a person already finds it hard to save something from his monthly salary, dis automatically means that now that person can't save any penny from his salary anymore.

In Nigeria Survival is the order of the day. People are still living below the poverty line, and now this will push them further downwards the poverty line and this country is not yet ready for the kind of chaos that will be caused as a result of such decisions. And this will be another means for more corruption in the society. SO MR. PRESIDENT G THINK REAL WELL, cos NIGERIA is also your country
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