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petrol

Petrol Price Hits N1,200/Litre as Independent Marketers Follow After NNPC

by Folarin Kehinde October 9, 2024

written by Folarin Kehinde

The price of Premium Motor Spirit (PMS) popularly known as petrol has risen across the country as independent oil marketers, which account for the majority of retail outlets have adjusted the pump price of petrol to about N1,200 per liter.

This development follows the Nigerian National Petroleum Company Ltd’s (NNPC) decision to end its exclusive purchase agreement with Dangote Refinery and Petrochemical Company.

The price adjustment, which took effect on Wednesday, reflects the cost at which marketers purchased the product from Dangote Refinery.

It should be noted that the national oil company had previously bore the cost of subsidizing the product to the target users.

A survey of filling stations across the FCT revealed that many have adjusted their pump prices to align with the new market reality.

The deregulation of the downstream sector allows marketers to buy petrol directly from Dangote Refinery, effectively ending NNPC’s monopoly.

Although in the short term the price of the product is expected to be high, Wwth marketers now negotiating prices directly with Dangote Refinery, industry experts predict increased competition and potentially stabilized prices in the long run.

October 9, 2024 0 comments

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Petrol Prices Expected to Rise to N1,800 Following Push for Full Subsidy Removal

by Folarin Kehinde September 24, 2024

written by Folarin Kehinde

Nigerians may soon face an increase in petrol prices, with projections indicating a potential hike to N1,800 per litre.

This development follows the call by Alhaji Aliko Dangote for the federal government to end petrol subsidy, just nine days after his 650,000 barrels per day capacity refinery began producing petrol.

In a recent interview with Bloomberg, Dangote said that removing the subsidy is essential, citing that all countries have eliminated subsidies.

He argued that subsidies actually drive up prices, as people take advantage of the subsidized rates. Dangote also highlighted the unsustainable nature of petrol subsidies, pointing out that Nigeria’s gasoline prices are about 60% lower than those in neighbouring countries.

“Our price of gasoline is about 60 percent the price of our neighbouring countrries and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying,” he said.

He added, “But this refinery will bring quite a lot of issues out there. It would show the real consumption of Nigeria because nobody can tell. Some people say it is 60 million litres per day, some say it is less,” the billionaire said.

“But right now, by us producing, everything can be counted and accounted for. Most of the trucks or ships that will load from us, we will put a tracker on them to be sure they are going to take the oil within Nigeria and that can help the government to save a lot of money.

“For example, Saudis, the citizens believe that oil is our god-given gift and should not charge us for it. Government was selling it at a very low price. But today, as we speak, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which I think does not make sense.”

Fuel subsidies were initially introduced in Nigeria in the 1970s to alleviate the impact of rising global oil prices. However, over time, the subsidies became a significant financial burden on the government, with Nigeria spending over N13 trillion on fuel subsidies between 2005 and 2021.

Previous attempts to remove or reform fuel subsidies have been met with resistance. In 2012, the government’s attempt to remove subsidies led to widespread protests. However, in 2023, President Bola Tinubu announced the end of the petrol subsidy regime, but subsequent reports suggested that the government was considering reintroducing temporary subsidies.

September 24, 2024 0 comments

Poverty limited: Nigerians groan over effects of 7.5% VAT on petrol prices Leading Reporters

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Nigerians Lament over effects of 7.5% VAT on petrol prices

by Leading Reporters June 19, 2023

written by Leading Reporters

Nigerians have begun to lament the effects of the introduction of a 7.5 per cent Value-Added Tax on the price of premium motor spirit, otherwise known as petrol.

This comes barely a month after President Bola Tinubu removed the subsidy on petrol during his inaugural speech on May 29, raising the price of PMS from N188 to about N580 in different states of the federation.

Recall that the Minister of Finance, Budget and National Planning, Zainab Ahmed, announced that the Finance Act 2020 raised the previous 5 per cent VAT of the country to 7.5 per cent on commodities including automobile gas oil and it was implemented on February 20, 2020.

But the VAT-exempt items include honey, bread, cereals, cooking oils, culinary herbs, fish, flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.

While other commodities have been VAT-compliant, PMS was not until recently because it was being subsidised by the Federal Government.

However, the new development has hit Nigerians hard, as many have called for an utmost review of it, especially because of the recent removal of fuel subsidies.

A user, Ingawa said, “That means for every litre of AGO you will buy, you have to pay 7.5% Consumer Tax (VAT) of the Pump Price. For example; If 1 litre of AGO is N650 at the filling station, then you have to pay an additional N48.75 being payment for 7.5% VAT. The total price per litre will be N698.75 per litre.”Related News

Another user, Angry Non-Nigerian, said, “When Tinubu said ‘widen the tax net, you people thought he was joking. The only thing that man knows is tax, tax and tax. As Lagosians.”

One Oyo said, “The Citizens will be the main IGR for this government. There is no single move to cut the cost of government from the Senate to the House to other departments. They went to education first by trying to add tuition fees, now 7.5% VAT on PMS. Everything directly to the common man.”

Akwa Ibom 1st son opined, “So after the removal of subsidy and the price of fuel jumped to 530, they’ve now decided to add 7.5%. VAT on AGO. In all of these, what are the politicians losing, and what are they sacrificing?”

“7.5% VAT on diesel after subsidy on petrol was removed? They will show you people shege banza pro max air 2. The government is after our lives bro!.

“Even those that were shouting ‘Akanbi’ will not be left out. They might even end up being the most affected. The evil will go round. I swear!

“Good governance is not attained by wishful thoughts, things don’t work that way. Now, Tinubu is going for a check-up after ruining the economy with senseless policies.

“His supporters have been crying since last week because the pressure is going around. We must all learn a lesson,” Madu Obi wrote.

June 19, 2023 0 comments

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