NNPC: Report Reveals Billions of Naira Petrol Subsidy Gulped in 7 Months

NNPC: Report Reveals Billions of Naira Petrol Subsidy Gulped in 7 Months

  • The Nigerian National Petroleum Corporation expended N714 billion subsidy on petrol in seven months
  • A document released recently by the national oil company’s presentation to the federation account has shown
  • Meanwhile, the documents by NNPC further revealed that the deductions so far have become the biggest factor contributing to the dwindling allocations to government accounts

FCT, Abuja - A report by The Cable indicates that Petrol subsidy payments gulped N714 billion in the last seven months, shrinking monthly revenue accrued to the federation account.

The subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.

Legit.ng gathers that the the document obtained showed that the country spent a total of N714.79 billion year-to-date to cater for the cost of petroleum shortfall, also known as under-recovery.

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NNPC says petrol subsidy gulped N714bn in seven months
NNPC revealed that petrol subsidy gulped N714bn in seven months. Photo credit: Nigerian National Petroleum Corporation
Source: Facebook

According to the document detailing the national oil company’s presentation at the September 2021 Federation Account Allocation Committee (FAAC) meeting, NNPC paid N25.37 billion in February for the under-recovery of PMS/value shortfall.

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It also expended N60.39 billion in March, 61.99 billion in April, N126.29 billion in May and N164.33 billion in June for the same purpose.

This is the biggest factor contributing to dwindling federal allocations to government accounts.

Recall that the NNPC says it recorded a total crude oil and gas export sales of $219.75m in May 2021, representing 180.29% increase on sales from the previous month of April 2021, a report by NNPC on Facebook also indicate.

This was contained in the May 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR), according to a press release by the Group General Manager, Group Public Affairs Division of the Corporation, Mr. Garba Deen Muhammad.

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Governor Uzodimma speaks on petrol price increase

Addressing the rising prices and scarcity of petroleum products in the state, Governor Uzodimma in a Facebook post urged petroleum marketers in the state to immediately revert to the normal price.

Legit.ng gathered that the state government had set up a task force that would go round, identify and seal all filling stations selling above the normal price and make them face the full weight of the law.

According to him, any filling station selling the products in the black market will not only be sealed but also have their licenses revoked.

Cooking Gas: NNPC give reasons for hike in price, proffers solution

Many Nigerian households find it difficult to cope with the nearly every day increase in the price of cooking gas across the country. This, undoubtedly, aggravates the problem associated with the hike in food prices.

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Daily Trust reports that while speaking on the cause of the hike in the price of cooking gas, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, says the challenges in sourcing adequate supply of cooking gas has led to the increase in prices of the commodity.

Legit.ng gathered that Kyari disclosed this during a working visit to the headquarters of the Department of Petroleum Resources (DPR) in Abuja on Tuesday, September 7.

Source: Legit

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