Fuel Subsidy Problems

Fuel Subsidy Problems

The Fresh revelations on the scam that trailed subsidy payments on fuel and kerosene emerged yesterday, as the House of Representatives ad-hoc committee probing the subsidy regime vowed to ensure the prosecution of individuals and firms found guilty in the scam.
The three-week probe headed by Faruk Lawan came to an end yesterday.
The Group Managing Director of Nigeria National Petroleum Corporation, Mr. Austen Oniwon, and the Executive Secretary of Petroleum, Pricing, Products, Regulatory, Agency and others failed to provide reason on why kerosene is sold about N130 against the subsidised price
of N50.
The Group Managing Director had said the subsidised price was N40.90k and the retail price in NNPC filling stations was N50 but could not answer questions on why Nigerians were buying at a different price.
Following the reaction of the audience, the Executive Secretary of PPPRA, Mr. Stanley Reginald was asked to state the price kerosene was sold. He had a contrary figure when he told the committee that the retail price of kerosene was N130 per litre in most filling stations across the country. Asked the amount kerosene was subsidized, Reginald said the non-subsidized price of kerosene wasN151 and the subsidised retail price from the original price of the subsidised price of N40.90k.
The Managing Director of Directorate of Petroleum Resources, Mr. Olorunsola also said, the retail price was between N75 and N130 “but the average price is within the region of N130.” The Accountant General of the Federation, Mr. John Otunba was taken to task as to what exact role he plays in the payment of subsidy, he told the members that “because the figures are already subjected to audit.