Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.
It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.
The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.
The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1.
PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre.
When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.
- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price...