Connect with us

News

FG Now Pays About ₦‎600Bn Monthly For Fuel Subsidy – Rainoil CEO

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Industry key player and CEO of Rainoil Limited, Gabriel Ogbechie, has claimed that the federal government has resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.

Ogbechie made this statement on Tuesday during the Stanbic IBTC Energy and Infrastructure Breakfast Session held in Lagos.

 

He pointed out that with Nigeria’s daily fuel usage at 40 million liters and the foreign exchange rate at N1,300, the government’s subsidy per liter of fuel falls between N400 and N500, culminating in a monthly total of approximately N600 billion.

Advertisement

“When Mr. President came May last year, one of the things he said is that Subsidy is gone. And truly subsidy was gone because immediately the price of fuel moved from 200 to 500 per liter. At that point truly, subsidy was gone.

“During that period, Dollar was exchanging for N460, but a few weeks later, the government devalued the exchange rate. And Dollar moved to about N750. At that point, subsidy was beginning to come back.

“The moment the two markets officially closed, officially the market went to about N1,300. At that point, that conversation was out of the window. Subsidy was fully back on petrol. If you want to know where petrol should be, just look at where diesel is. Diesel is about N1,300 and petrol is still selling for N600.

“So I can tell you for free that there there is at least N400 or N500 liters subsidy on petrol today. If you look at our daily consumption, say 40 million liters, and we’re spending N500 per liter, that is about N20 billion every day, N600 billion every month and 7.2 trillion yearly depending on how we look at it. So, subsidy is definitely back on petrol,” he said.

Advertisement

Furthermore, he said that NNPC being the only petrol importer in the country implies that there is an ongoing subsidy, as prices had to be fixed.

“And if you look at it, NNPC remains the sole importer of petrol in this country because there is subsidy on petrol so the price has to be pegged,” he added.

What you should know

Recently, the idea of reinstatement of fuel subsidy has been a contentious topic in public discourse, with several observers maintaining that the federal government has restarted the subsidy on petrol since its removal on May 29, 2023.

Advertisement

Earlier, Nasir El Rufai, said the federal government is spending more on petrol subsidy than before.

In addition, the Special Adviser to the President on Energy, Mrs. Olu Veŕheijen, said that the Federal Government reserves the right to pay fuel subsidy intermittently to cushion hardship in the country.

“The subsidy was removed on May 29. However, the government has the prerogative to maintain price stability to address social unrest. They reserve the right to intervene.

“If the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government reserves the right to intervene intermittently and that, does not negate the fact that subsidy has been removed,” she said.

Advertisement

On its part, however, NNPC has insisted that no subsidy is paid to its account from the federal government.

Addressing the issue in August 2023, the GCEO of the oil firm, Mele Kyari, stated that the company is only recovering the cost of import, adding that the federal government hasn’t paid a subsidy since May.

“I told you there’s no subsidy whatsoever, we are recovering our full cost from the products that we import. We sell to the market, we understand why the marketers are unable to import. We hope that they do this very quickly and these are some of the interventions the government is doing. There is no subsidy.” Kyari said.

Advertisement
Continue Reading
Advertisement
Click to comment

Warning: Undefined variable $user_ID in /home/naijuinz/public_html/wp-content/themes/zox-news/comments.php on line 49

You must be logged in to post a comment Login

Leave a Reply

News

We don’t have current negotiations with US — Iran

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Iran’s foreign ministry on Monday said it was not currently involved in negotiations with the United States, despite a halt in recent fighting between the two sides.

“Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States,” ministry spokesman Esmaeil Baqaei said at a weekly press briefing.

“Claims that Iran has requested negotiations are fabrications that the other side circulates from time to time,” he added.

Hostilities resumed between Iran and the United States earlier this month after diplomatic efforts collapsed amid an impasse regarding the Strait of Hormuz.
Fighting has nonetheless paused since early Saturday, following 13 days of exchanges of fire between the two sides.

Advertisement

Baqaei criticised the United States, saying its conduct in recent years has “resembled that of a mafia gang that adheres to no rules or laws”.
“So long as such behaviour by the United States continues, we cannot be hopeful about the emergence of a reasonable process,” he added.

Iran insists on retaining control over the management of the Strait of Hormuz, including the collection of service fees, while keeping Oman involved as a coastal state.
Iran’s Revolutionary Guards have turned back multiple vessels in recent days, including six earlier on Monday, that attempted to transit the strait outside the route designated by the Islamic republic.

On Monday, Baqaei reiterated that Washington had nothing to do with recent talks with Oman over the administration of the Strait of Hormuz.
“These talks have no connection with the United States. They are a bilateral matter between Iran and Oman, and they are continuing,” Baqaei said, adding that the waterway “remains closed”.

Advertisement
Continue Reading

News

Police Finally Confirm Abduction Of Kebbi High Court Judge By Bandits

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

The Kebbi State Police Command has confirmed the abduction of
a Kebbi State High Court judge, Justice Faruku Hassan Bunza after suspected Bandits invaded his residence in Bunza Local Government Area.

Confirming the abduction, the State Police spokesperson, SP Bashir Usman, said the judge was taken from his residence around midnight.

“I can confirm that Hon. Justice Faruku Hassan Bunza was abducted from his residence in Bunza around midnight,” Usman said.

He disclosed that the Commissioner of Police, CP Umar Muhammad Hadejia, had immediately deployed tactical and intelligence teams to track the abductors and rescue the judge.

Advertisement

“Our personnel are combing identified locations, including forest hideouts, to ensure that the judge is rescued alive and unharmed,” the police spokesperson said.

NATIONAL WAVES learnt that the gunmen stormed the judge’s home along Zogirma Road at about 12:00 a.m. on Sunday, shortly after he returned from a trip to Sokoto State.

The attackers fired sporadically into the air before whisking the judge away. No member of his household was kidnapped or molested during the operation. He had just returned from Sokoto when the gunmen invaded his residence and abducted him,” a source squealed

A family member who craved for anonymity said “Immediately the incident happened, we alerted the relevant authorities, including the leadership of the High Court,”

Advertisement
Continue Reading

News

Confusion in Anambra as students feared trapped in private hostel near Oko Polytechnic collapses

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

A three-storey private hostel warehousing students of Federal Polytechnic Oko has collapsed in Amokpala, Oko, in Orumba North Local Government Area of Anambra State, leaving a yet-to-be-identified number of occupants trapped beneath the rubble.

The building, identified as Elite Five Star Lodge, reportedly caved in late Sunday night.
The collapse of the hostel located near Tonimas Filling Station in the Oko Polytechnic community sparked panic among residents and students as cries for help were reportedly heard from beneath the debris.

Emergency responders launched rescue operations, with personnel from the Anambra State Police Command, the Anambra State Fire Service, the Anambra State Emergency Management Agency (SEMA), and other security and emergency agencies deployed to the scene.

Several injured victims have so far been rescued from the collapsed structure and taken to a hospital in Oko for medical treatment.

Advertisement

Search-and-rescue teams, however, continue efforts to reach other occupants believed to be trapped under the debris.

Authorities said the exact number of casualties and those trapped could not be immediately confirmed, as rescue operations were still ongoing at the time of filing this report.

Confirming the incident, the spokesperson for the Anambra State Police Command, SP Tochukwu Ikenga, said a police-led joint security team swiftly secured the area and coordinated emergency response efforts to prevent further loss of life.

Ikenga urged residents to remain calm, refrain from spreading unverified information, and stay away from the scene to allow rescue workers unhindered access to carry out their operations.

Advertisement

He added that the police command would provide further updates as more verified information becomes available.

Continue Reading

Trending

Copyright © 2024 Naija Blitz News