Nigeria’s Petroleum Ministry over the weekend removed the subsidy on Kerosene.
The product according to the recently released Petroleum Products Pricing Regulatory Agency’s (PPPRA) pricing template, the product is to be sold at N83 per litre from N50 per litre.
The product pricing template however noted that the N83 per litre price applies only to the Nigerian National Petroleum Corporation (NNPC) retail outlets, meaning that other petrol stations and dealers can sell higher than the stipulated amount.
This has caused hardships for several poor Nigerians who rely solely on kerosene as domestic fuel for cooking, and some for vision in areas suffering acute electricity shortages.
According to our reports most people are getting Kerosene at the retail price of between N100 and N200 in some parts of Lagos despite the fact that the government claims to be making a gain of N10.72 per litre, as it puts the Expected Open Market Price, which is the Landing Cost plus Total Margins at N72.28 per litre.
Giving a breakdown of the price, the PPPRA template put the Landing Cost of the product at N57.98 per litre, while the total margin due middlemen was put at N14.30.
Further breakdown of the Total Margins showed that retailers margin was put at N5per litre; Transporters – N3.05 per litre; Dealers – N1.95 per litre; Bridging fund – N5.85 per litre; Marine Transport Average – N0.15 and Admin Charges – N0.15.
The PPPRA further put official ex-depot price, which is the price depot owners would sell at N68.70 per litre, official ex-depot price for collection – N73 per litre, while ex-coastal price – N68.02 per litre.
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