Subsidy on Petroleum Products Increases

Fri, Feb 6, 2015

By publisher

3 MIN READ

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THE Petroleum Products Pricing Regulatory Agency, PPPRA, has said that the subsidy on Premium Motor Spirit, fondly called petrol has increased to N12.27 per litre. This is the highest since the federal government reduced the pump price of the product to N87 per litre on Sunday January 18.

The expected open market price, EOMP, of PMS, according to the PPPRA pricing template, is N99.27 per litre as of February 3, up from N95.47 on February 2 and N88.23 on January 29. This means that N12.27 is the subsidy incurred by the government on every litre of the product from that day, with the regulated price of the product being N87 per litre. The subsidy was N8.47 per litre on February 2.

The product cost and freight component was put at N73.46 per litre, up from N69.79 per litre on February 2 and N62.79 on January 29. The landing cost, which is the sum of the product cost, freight rate, trader’s margin, lightering expenses, Nigerian Ports Authority fees, financing cost, jetty depot throughput charge, and storage charge, increased to N83.78 per litre, up from N79.98 on February 2 and N72.74 on January 29.

The EOMP (total cost) is the sum of the landing cost and the distribution margins, which amounted to N15.49 per litre. On the distribution margins, the retailers’ cost element stood at N4.6; transporters, N2.99; dealers, N1.75; bridging funds, N1.75; marine transport average cost, N0.15; while admin charge was put at N0.15.

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Protesters Besiege Benin Electricity Disco

THE Benin Electricity Distribution Company, BEDC, has said that low supply of electricity from the national grid was responsible for the load shedding among customers under its coverage areas of Edo, Delta, Ondo and Ekiti States. Kunbi Labiyi, chief corporate service officer of the company, said it received 240 megawatt, MW, of electricity from the national grid instead of about 900MW required by the company to serve its customers.

Labiyi stated this while addressing some customers who besieged the company to protest shortage of electricity supply in their area. “At around 9.30am this morning there was demonstration from persons who claimed to be residents from areas behind Ogbe stadium (Benin City) under Etete environs. Their complaint was hinged on the 12 hourly load shedding arrangement currently being experienced by their area. This implies that they are not happy that they are getting 12 hours power supply daily.

“The Load shedding arrangement is a result of inadequate power supply and was further occasioned by the reduction in generation leading to a drop in the allocation from TCN to BEDC. Presently, BEDC receives 240MW from the national grid to cover Edo, Delta, Ondo and Ekiti states, which is far lower than what the four states need. BEDC currently has capacity to take three times the power provided.  Edo state enjoys the 44 percent of the amount received presently, while 56 percent is shared by the Ekiti, Ondo and Delta States. In Edo State, several locations receive between 10hours and 23hours power supply, with the least availability being six hours. This is far higher than the average in most states in the country. We are not in a position to increase this as this will further marginalised the other three states, she said.

According to Labiyi, the protesters have since realised that electricity supply to their area is amongst the best in Edo state.

— Feb. 16, 2015 @ 01:00 GMT

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