Govt pays N53.3 per litre subsidy on kerosene
THE Federal Government, as at November 19, paid N53.3 per a litre to subsidise kerosene in the country.
Though government subsidises the household product supposed to be sold at a regulated price of N50 per litre, kerosene actually sells for as much as N150 per litre.
According to the Petroleum Products Pricing Regulatory Agency (PPPRA), the landing cost of kerosene stands at N87.81 per litre; expected open market price as N103.3 per litre, while subsidy on the product is N53.3 per litre.
As at Monday, The Guardian checks revealed that the product is not available in most filling stations across Lagos.
The Guardian noticed long queues in few filling stations, which are selling the product at the regulated price of N50.
Speaking on the issue recently, Executive Director, Commercial for Pipeline and Products Marketing Company (PPMC), Justine Ezeala, said that kerosene subsidy is a racket as marketers who benefit from the subsidy are to sell to the public for N50 per litre but fail or refuse to do so.”
He said the corporation is planning to downplay the importation of kerosene and focus on the importation of PMS in order to ensure sufficiency in the market, meaning that from now till January 2016, cargoes coming in will be PMS and not kerosene.”
Ezeala also noted that, in order to do away with the abuse of the kerosene subsidy regime by corrupt marketers, a gas master plan has been developed and awaiting presidential approval, and when unveiled and implemented, will do away with the kerosene racket on the basis of regular and favourable market forces.
Airline operators raised the alarm over the danger in the sale of kerosene as aviation fuel to domestic airlines in the country by oil marketers. Aviation fuel is also known the aviation parlance as Jet A1.
They alleged that major oil marketers had been selling kerosene as aviation fuel to the operators which he said affected the performances of the engines in many of the aircraft flying around the country.
They revealed how the International Air Transport Association (IATA) had sent a Notice to Airmen (NOTAM) coming into Nigeria, warning them to beware of aviation fuel being sold in Nigeria.
According to them, the Nigerian Civil Aviation Authority (NCAA) had been informed of the development.