Kachikwu clarifies statement on N1.4trn subsidy on petrol

Kachikwu clarifies statement on N1.4trn subsidy on petrol

- The minister of state for petroleum resources, Ibe Kachikwu, discloses that FG has paid some subsidy on the importation of petrol

- He states that NNPC is in a best position to give the accurate figures of the amount of subsidy paid

- According to him, the NNPC would provide details of the under-recovery figures and circumstances surrounding it

The minister of state for petroleum resources, Ibe Kachikwu, has faulted reports credited to him that the country had incurred a total of N1.4 trillion deficit due to importation of petrol.

Kachikwu made this known in a statement issued on Monday, April 9, in Abuja by Idang Alibi, the director, press and public relations in the ministry, The News Agency of Nigeria (NAN) reports.

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He said attention had been drawn to reports in which he was quoted to have said Nigeria presently incurs over N1.4 trillion till date as under-recovery or losses on the importation and sale of petrol.

Under-recovery is the difference (subsidy) paid on products when purchased at a high price and sold below cost price.

At a workshop on the harmonisation of Liquefied Petroleum Gas (LPG) regulatory requirements held in Abuja on April 5, Kachikwu in a chat with newsmen disclosed that there was some form of under-recovery. He equally stated that the details of the under-recovery figures and circumstances surrounding it would be provided by the NNPC.

He said NNPC was in a best position to give the accurate figures of the amount of under-recovery involved because the body was importing most of the Premium Motor Spirit (petrol) retailed in Nigeria.

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“It is time for Nigeria to harness alternative fuel sources like (LPG) as under-recovery from the importation and sale of petrol at the government-regulated price of N145 per litre has hit N1.4 trillion.

“Clean energy is very essential and we need to move away from complete utilisation in our transport sector of only petrol. This is creating a lot of under-recovery of N1.4 trillion per annum of exposure to the government," he said.

Meanwhile, the Economic and Financial Crimes Commission (EFCC) has secured the conviction and sentencing of two oil marketers, George Ogbonna and Emmanuel Morah, owners of Rocky Energy Limited.

They were sentenced to eight years imprisonment by the court presided over by Justice Latifat Okunnu after they were found guilty of a 26-count amended charge of conspiracy, obtaining by false pretence and forgery.

The EFCC said the duo, alongside one Adamu Maula, owner of Downstream Energy Sources Limited, had been re-arraigned on April 1, 2014 on an amended 26-count charge bordering on conspiracy, obtaining money by false pretences, forgery, uttering and use of false documents to the tune of N789.6 million fraud.

What will Nigerians do if FG increases fuel pump price to N180/litre? on Legit.ng TV

Source: Legit.ng

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