Business

FG Raises Fuel Supply To Avert Price Hike

Published

3 months ago

March 19, 2023

The Federal Government, through its Nigerian National Petroleum Company Limited, has increased the supply of Premium Motor Spirit, popularly called petrol, to independent oil marketers, in a bid to avert a further hike in the pump price of the commodity.

Oil marketers confirmed on Friday that the national oil company listened to their demands for an increase in the volumes of PMS released to independent filling stations, so as to curb the widening disparity in the cost of petrol.

They told our correspondent that the move by NNPCL had now improved the availability of products in retail outlets operated by independent marketers, adding that the national oil firm also promised to sustain this.

On Wednesday, it was reported that oil marketers warned that there could be an imminent hike in fuel price due to the poor supply of the commodity by NNPCL.

They cautioned that the disparity in the pump price of petrol would further widen due to the incomplete delivery of products to many filling stations.

According to the report, dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria, said there was a lopsided pattern in the distribution of PMS lately, stressing that this would cause scarcity and worsen the price disparity in retail outlets.

“Here in Port Harcourt, for instance, we have Oando and NNPC Retail, and they have products in some private depots. Master Energy and Liquid Bulk also have products, but there is no volume for independent marketers,” the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, had stated.

He added, “Independent marketers have no volume in all these depots and we have over 3,400 tickets lying and waiting at the NNPC Retail account.

“This new system is now making independent marketers beg for petroleum products from NNPC Retail. The lopsided distribution pattern will continue to cause scarcity and price disparity in retail outlets.”

But when asked on Friday whether the NNPCL had listened to the demands of oil marketers, in order to avert the imminent price hike, Ukadike replied in the affirmative.

He said, “The NNPCL supplied 13 million litres and informed us about it. This is to cushion the effect of the poor supply in the affected areas. They also promised that they will ensure that marketers are given products back-to-back.”

The IPMAN official assured PMS consumers that with the sustenance of adequate supply by NNPCL, the cost of petrol at filling stations operated by independent marketers, would always revolve around the government-approved price.

NNPCL is the sole importer of PMS into Nigeria and this has continued for several year. Other marketers stopped importing the commodity due to the difficulty in accessing the United States dollar for PMS imports.

The marketers now source the commodity from NNPCL at a subsidised cost, for onward distribution to consumers across the country.

“That is the situation of things now. The recent supply of PMS has really helped in making the product available in many retail outlets across the country. So, with enough supply, the issue of unnecessary price disparities would be addressed,” Ukadike stated.

On Thursday, The PUNCH reported that the consumption of petrol in Nigeria had risen to about 80 million litres daily, pushing up subsidy on the commodity to an estimated N484bn monthly.

The report stated that an analysis of PMS weekly evacuation/dispatch data from March 4 – 10, 2023, obtained from NNPCL, indicated that a total of 558.83 million litres of petrol was evacuated during the period, translating to an average daily consumption of 79.83 million litres.

Around mid-last month, the Group Chief Executive, NNPCL, Mele Kyari, said about 66 million litres of petrol was pumped daily into the market by the oil firm, as the company was spending about N202 on every litre of PMS consumed across the country.

Business

NNPCL Withheld N8.48trn Oil Subsidy Since January 2022 – RMAFC

Published

1 day ago

June 8, 2023

Editor

The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has accused the Nigeria National Petroleum Company Limited (NNPCL) of withholding N8.480trillion.

The commission said the NNPCL withheld the sum meant for the Federation Account, as petrol subsidy, from January 2022 till date.

A statement on Thursday by RMAFC Chairman, Mohammed Shehu suggested that the subsidy regime was shrouded in secrecy.

Shehu said the scrapping of oil subsidies by President Bola Tinubu, a decision he announced during his inauguration on May 29, was a good move.

“Since January 1, 2022, to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments.

“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608,” the statement reads.

The figure reported by the Office of the Accountant General of the Federation (OAGF) “is yet to be reconciled by the RMAFC, OAGF, and NNPCL”, Shehu noted.

The RMAFC chief said in a situation where subsidy transactions are not transparent, “it would be unwise to sustain the phantom payments of subsidy.”

He expressed optimism that the subsidy removal would eliminate uncertainty surrounding the subsidy regime and avail funds for the execution of critical national projects.

Shehu further charged the President to go after economic saboteurs “who have contributed to the nation’s economic woes.”

Business

Nigeria Earned N109.6trn Non-oil Tax In 12 Years – NBS

Published

1 day ago

June 8, 2023

Editor

The National Bureau of Statistics (NBS) has revealed Nigeria earned N109.6 trillion from non-oil taxes in 12 years.

The federal agency gave the breakdown in its latest report titled “Tax-To-GDP Ratio.”

The document noted that between 2010 and 2021, Africa’s most populous country earned N25.1 trillion from oil tax.

According to NBS, Nigeria collected N6.8 trillion in 2010, N9.4 trillion in 2011, and N8.4 trillion in 2012 as non-oil taxes.

Non-oil taxes earned the nation N9.2 trillion in 2014, N7.8 trillion in 2015, and N7.1 trillion in 2016.

Furthermore, Nigeria generated N8.7 trillion in 2017, N10.6 trillion in 2018, and N12.5 trillion in 2019 from non-oil taxes.

However, the country collected N2.4 trillion from oil taxes in 2014, N1.4 trillion in 2015, and N1.2 trillion in 2016.

NBS added that the total tax revenue from non-oil taxes in the period under review was N142.4trillion

Business

UK Clamps Down On Cryptocurrency Sector

Published

2 days ago

June 8, 2023

Editor

Britain’s financial regulator on Thursday tightened rules over the promotion and selling of cryptocurrency as it seeks to protect consumers.

The Financial Conduct Authority unveiled a package of measures for the industry, which has long faced criticism over the lack of oversight — and promises of high returns in a volatile marketplace.

Under the new rules, companies promoting crypto products or services in Britain must from October give a “clear warning” that customers could lose money in “high-risk” investments.

Marketing firms must also introduce a cooling-off period for first-time crypto investors.

FG put MDAs’ payments on hold
And the watchdog will also ban “refer a friend” bonuses that are designed to incentivise crypto investing.

“Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, head of consumers and competition at the FCA.

The announcement comes after Britain introduced legislation earlier this year to bring crypto promotions under the scope of the FCA.

UK lawmakers are also demanding that crypto investments in Britain be regulated, in much the same way as the country’s gambling industry.

Reacting to the FCA announcement, the director of operations at industry group CryptoUK, Su Carpenter, said the new rules could prevent fresh entrants.

“There is a risk that this solution will both unfairly concentrate market power for those firms which are already authorised and potentially encourage unauthorised firms to operate from outside of the UK,” Carpenter said.

That could, in turn, create “a competitive disadvantage for UK-based organisations and also potentially undermining consumer safeguards”, she added in a statement.

The FCA clampdown follows moves toward tighter regulation in the United States.

The Securities and Exchange Commission on Tuesday sued crypto platform Coinbase, charging that the largest US digital currency trading platform made billions of dollars by “unlawfully facilitating the buying and selling of crypto asset securities”.

The SEC has this week also unveiled charges against Coinbase peer Binance and its founder Changpeng Zhao for numerous alleged securities law violations.

The news follows the spectacular failure of crypto exchange giant FTX in November, stoking concern over a market dubbed by some critics as the “Wild West”.

AFP