The minister of Finance, Kemi
Adeosun, has revealed that the federal government is not paying subsidy to keep
fuel price at N145, adding that there is under recovery on the part of the
Nigerian National Petroleum Corporation (NNPC).
Adeosun disclosed this while
speaking to State House correspondents after the federal executive council
meeting presided over by President Muhammadu Buhari at the presidential Villa
on Wednesday.
The minister said Nigerians have
been bearing the burden of revenue loss from the NNPC.
Adeosun said: “On the question of
subsidy, the price of oil for Nigeria today is a double edge sword. So every
dollar that goes up we get more revenue but also because we are importing
refined petroleum increases the landing cost of fuel.
“So for every time we get excited
that the oil price is going up, there is also a knock on effect on the price of
imported PMS and that is a function of us not having refining capacity, it is
one of the unfortunate impact of that.
“Now, when there is talk of
payment of subsidy, technically today, there is no subsidy but there is under
recovery. Why that is, is because NNPC are currently doing all the importing.
They are importing at a higher price than they are selling which means they are
losing money, which means effectively that loss is being borne by everybody and
effectively it reflected in the federation account.
“So, there is no subsidy payment
in the way the old subsidy scheme use to work where they were paying the oil
marketers but there is an under recovery, a loss on the importation of PMS
being borne by NNPC and therefore indirectly being borne by everyone one of
us.”
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This woman can speak english sa,'technically today'there is no subsidy but pacticaly here the is subsidy pymt by all and FG, nawao
ReplyDeleteLiars,whatever name you call it! It is still subsidy,so please save the trash.
ReplyDelete