PPPRA Pegs Subsidy Cost For 2012 At N679 Billion

While defending the budget of the Petroleum Pricing and Regulatory Agency (PPPRA) before the Joint Committee of the Senate and House of Representative on Petroleum (Downstream) sector in Abuja, Executive Secretary of the agency, Mr. Reginald Stanley said Government has spent N679.736 billion on fuel subsidy in 2012.

He said the PPPRA has so far saved N671.706billion in subsidies this year, adding that of the N679billion subsidy payments, the NNPC got N337.7billion, while other marketers received N342billion from January to October, as against N1.351trillion paid for the same period last year.

He said of the N1.351tillion subsidy disbursed between January and October last year, NNPC got N517.325billion, while other marketers received N834.117billion

He said the shortfall in payments for January to October this year, represented 49.7 per cent less than the payments for the same period in 2011.

Stanley said a daily average of 35.642million litres of fuel was supplied this year.
Of the amount, he said the NNPC supplied 18.232million litres, while other marketers provided 17.409million litres between January and October this year.

He said this was against the daily average of 59.712million litres of products supplied during the same period last year, made up of NNPC’s 22,424,064.94 litres and other marketers’ 37,288,686.75 litres.
He said the total daily average supplied this year represented 40.11 per cent less than the quantity supplied for the same period last year.

He further disclosed that the total numbers of marketers are now 38 as against 128 last year.
While defending the agency’s N5.7billion overhead expenditure last year, Stanley said the amount represented the salaries of 249 staff, Pay-As-You-Earn (PAYE) and National Health Insurance Scheme (NHIS).

Meanwhile, the Presidency has said there is no crack in the cabinet over unpaid petroleum subsidy claims.

Reports making the rounds indicated that there was a disagreement between Minister of Finance and Coordinating minister for the Economy, Dr. Ngozi Okonjo-Iweala, and the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke over N1.13trn subsidy claims.

According to the report, a delegation of the Nigerian National Petroleum Corporation led by Alison-Madueke was said to warn President Goodluck Jonathan of an imminent fuel scarcity in the country if government failed to pay the debt after attempt to make the finance minister settle the bills raid.

However, Dr. Reuben Abati, the media aide to the president reacting to the report yesterday said, “I am not aware of any disagreement between the two ministers. I read those stories too but those stories are usually speculative. They are not based on any substance and I think we should refrain from this attempt to set one individual up against the other.

“The cabinet over which Mr. President presides overworks as a team and at all times, what he emphasises is team spirit. I am not aware of any open disagreement between the two ministers.”