April 23, 2024

Bustan Daily

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Oil marketers deny NNPC on N5.35bn petrol subsidy payment

2 min read

Oil marketers on Monday expressed surprise over the
resurfacing of petrol subsidy in June 2020 as disclosed
by the Nigerian National Petroleum Corporation in its
latest operations report .
According to marketers of petrol, the government had
since March this year declared that the downstream oil
sector had been deregulated and as such there was no
need for petrol subsidy .
Independent Petroleum Marketers Association of
Nigeria and the Petroleum Products Retail Outlets
Owners Association of Nigeria told our correspondent
in Abuja that they had not received any subsidy
payments from government .
The PUNCH reported on Monday that NNPC made an
under – recovery of N 5. 35 bn in June .
Under – recovery is the losses incurred by the oil firm
due to the difference between the subsidised price at
which the corporation sells petrol and the price which
it should have received to meet its production cost .
The Group General Manager , Group Public Affairs,
Division , NNPC , Kennie Obateru , had explained that
the return of under – recovery in June was due to the
payment for stock held by marketers at the onset of
the removal of subsidy by the Federal Government .
“ Since the subsidy removal started with reduction in
pump price , marketers have been paid the differential
of the PPPRA verified stock they held and it is spread
over a period of six months , ” he said .
But the National Public Relations Officer , IPMAN ,
Ukadike Chinedu , said it was surprising to hear of
subsidy payments when the downstream sector had
been deregulated .
He said , “ They didn ’ t pay us any subsidy money . You
are also aware that the market has been deregulated .
We are now dispensing products based on
international crude oil market price .
“ Furthermore , you are aware of the price regime and
this regime is regulated by the price of crude oil in the
international market .

So , where is the subsidy coming
from ?”
“ You are
that in
February , March , April, May and June , the PPPRA
released guiding prices for petrol based on price
deregulation . So as at what point did the subsidy come
in ?

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