Now the huge question now is who are we to blame for fuel hike, Buhari for removing fuel subsidy upon his return to office as the President of Nigeria or PPMC a subsidiary of NNPC who is the major distributor of fuel in Nigeria and the body also responsible for issuing out a circulatory on the price of fuel?

May 2015 When President Muhammadu Buhari assumed the office of the President of the Federal Republic of Nigeria, he promised to remove petrol subsidy totally from the fuel pricing templates of the Petroleum Products Pricing Agency (PPPRA) and allow market forces to determine retail prices at the filling stations.

On May 11, 2016, after assumption of office, he announced the ever controversial removal of fuel subsidy across the country.

The then development saw the petrol price reduced initially to N86.50 per litre from N87 before adjusting upwards to N141. Later on, the price was adjusted further upwards to N145 per litre.

Since then, the government quietly restored subsidy in the pricing template of petrol without any formal announcement.

Rather than call the excess cost above the N145 per litre ceiling fuel subsidy, the government gave the NNPC approval to describe it as ‘under-recovery’ as part of its operational cost.

The NNPC then became the sole importer of petrol into Nigeria and was essentially subsidising the product for users. The price remained at N145 per litre despite variations in the international price of crude.

In 2018, Nigeria spent about N722.3 billion on fuel subsidy, according to the Nigeria Extractive Industry and Transparency Initiative.

With the recent sharp decline in the global price of crude oil as a result of the impact of the coronavirus pandemic, Nigeria, for the first time since 2016, reduced the retail price of petrol by N20 to N125 per litre.

Last week, with the further drop of the crude oil price at the international market, the petrol price was again adjusted to N123.50 per litre.

With crude oil prices gradually building, amid interventions by the Organization of Petroleum Exporting Countries (OPEC) member countries to cut output to strengthen the market, it is not clear if the government would not bring back subsidy if the price builds beyond the previous ceiling price of N145 per litre.

The PPMC on the other hand is a subsidiary of the Nigerian National Petroleum Corporation, NNPC, and currently imports almost all that is if not all of Nigeria's petrol.

According to an internal memo made available to marketers and other stakeholders, the new directive becomes effective on September 2.
And it states below

"Please be informed that a new product price adjustment has been effected on our payment platform,".

"To this end, the price of Premium Motor Spirit is now one hundred and fifty one naira, fifty-six kobo (N151.56) per litre."

The ex-depot price is the price at which the product is sold to marketers at the depots.

The memo was signed by D.O Abalaka, the depot manager.

Lamenting the increase, a depot owner told Naira Gists that his depot would not sell for less than N155.60 to marketers and other filling stations.

"To buy each litre, you pay draft of N2 on each litre, you pay union dues, and of course you have to make a profit," the depot owner said on Wednesday, asking not to be named as he had no permission of his union to speak to journalists.

Most depot owners and major marketers buy the petrol directly from the PPMC, store in their own depot and then sell to other marketers and filling station owners from whom Nigerians buy.

Nigerians should thus be expecting a petrol price of about N160 per litre at filling stations.

The Nigerian government, through the Petroleum Product Pricing Regulatory Authority (PPPRA) recently announced a 'deregulation' policy wherein the NNPC would no longer subsize petrol for Nigerians but the PPPRA would still determine the sale price based on market forces.

Source: https://nairagists.com/fuel-hike-who-are-we-to-blame-buhari-or-ppmc/

NNPC/CBN

They are all bedfellows in the act.

Yourself

If the head is rotten.......