*Nigerian Maritime Administration and Safety Agency (NIMASA)’s charges on petrol remains N0.22 per litre
As fuel subsidy is increasing, 16 vessels will discharge 234,907 tonnes of premium motor spirit and automotive gas oil (AGO) valued at N93.9 billion this week at the nation’s seaport jetties. Of the quantity expected, only 5,000 tonnes laden by Kowie is AGO.
Finding revealed that 88,207 tonnes of PMS will be discharged at Kirikiri Lighter Terminal Phase II with Tornado leading with 20,000 tonnes; Capt Gregory, 20,000 tonnes; Stellar, 18,207 tonnes; Clover, 15,000 tonnes and Kingis, 15,000 tonnes
Also at Warri Port, the Nigerian Ports Authority (NPA)’s shipping position explained that 76,700 tonnes of the fuel will be offloaded, noting that Leste will discharge 13,700 tonnes; Maestro, 8,000 tonnes; Safesea Neha III, 15,000 tonnes; MT Thor, 5,000 tonnes; Mosunmola, 20,000 tonnes and ST Zeezee, 15,000 tonnes. It noted that Rivers Port would also take delivery of 65,000 tonnes as Matrix Pride jostle to deliver 25,000 tonnes; Bora, 20,000 tonnes and Ayodeji, 20,000 tonnes.
According to Petroleum Products Pricing Regulatory Agency (PPPRA), Nigerian Maritime Administration and Safety Agency (NIMASA), charges stood at N0.22 per litre; jetty throughput charge N0.60; storage charge N2; and financing cost N1.92; putting the landing cost of PMS at N92.89 per litre. it was revealed that the amount spent on PMS subsidy, popularly has jumped to N947.51 billion between January and April 2022, making the projected subsidy for payment at the end of June to jump to N1.82 trillion.
Meanwhile, the National Bureau of Statistics (NBS) has revealed that Nigeria spent N1.51 trillion on the imports of premium motor spirit (PMS) in the first quarter of 2022. The bureau noted that the country spent N675.93 billion or 45.33 per cent of the amount on subsidy in the first three months of the year, saying that this was 25.54 per cent of the total imports for the quarter, an increase of 17.05 per cent when compared to the N1.29 trillion spent on importing fuel in the first quarter of 2021.
Statistics from the Nigerian National Petroleum Company Limited also indicated that the company spent N210.38 billion, N219.78 billion and N245.77 billion as subsidy on petrol in January, February and March 2022 respectively. It was earlier reported that the amount spent on fuel subsidy monthly rose from N60.39 billion in March 2021 to N245.77 billion in March 2022, indicating an increase of 306.97 per cent. Despite the increasing cost of fuel subsidy, Nigerians still suffered a hike in the cost of transportation.
The World Bank and the International Monetary Fund have decried the Federal Government’s huge spending on petrol subsidy, urging government to end the regime. In its Africa’s Pulse report, World Bank said increasing fuel subsidy puts the Nigerian economy at a high risk as subsidy payments could significantly impact public finance and pose debt sustainability concerns.
However, the Federal Government had planned to stop paying fuel subsidy by June 2022, but government eventually backtracked on the plan. It would be recalled that in January 2022, the Federal Government decided to retain the controversial fuel subsidy for another 18 months following threats of protests by the Nigerian Labour Congress and other interest groups.
IMF said the fear of political resistance, widespread corruption and pressure from interested groups is hampering the removal of fuel subsidy in Nigeria. The IMF’s Resident Representative for Nigeria, Ari Aisen, recently said that Nigeria’s subsidy bill would likely hit N6 trillion by the end of this year at the current monthly subsidy bill of N500 billion.
SOURCE: newtelegraphng.com