\n

\n

\n

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices.\n

This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to be deducted by the NNPC from FAAC.\n

They also stated that the volume of petrol consumed in a particular month was contributory to the amount being spent as subsidy, but insisted that the major factor was the global crude oil price.\n

As the sole importer of PMS and supplier of last resort, the NNPC ensures adequate supply of refined petroleum products by importing the commodities.\n

PMS is not deregulated by the Federal Government, as the price is sold at between N162 and N165\/litre at filling stations, far lower than the actual cost of the commodity.\n

In June 2021, the Group Managing Director, NNPC, Mele Kyari, had stated that petrol price should be more than N280\/litre, while the commodity had been subsidised and sold at N162\/litre since last year.\n

The subsidy spent on each litre of petrol consumed in Nigeria is therefore recovered by NNPC through its monthly deductions from its remittances to FAAC.\n

An analysis of the monthly FAAC deductions in 2021, captured by the NNPC as under-recovery of PMS\/value shortfall, for instance, showed that the oil company deducted N25.37bn from FAAC in February 2021 when the average price of Brent crude was $62.28\/barrel.\n

But in June of the same year when the price of Brent climbed to $73.16, the national oil firm reported that it spent N164.33bn on subsidy in that month.\n

Notably, between June and November 2021, a period of six months, the oil firm deducted N888.13bn from FAAC being subsidy spent on petrol imports. This comes to about N148bn monthly on the average.\n

The average cost of Brent crude during the six-month period, according to figures obtained from Statistica, a global statistical firm, was put at $76.4\/barrel.\n

However, the price of Brent has been on the rise since this year, following efforts by the Organisation of Petroleum Exporting Countries and its partners to boost the cost of the commodity.\n

Source:- Punch Ng\n\n","protected":false},"excerpt":{"rendered":"

Figures obtained from the oil firm on its subsidy deductions in 2021 indicated that the amount deducted monthly from FAAC by the NNPC was higher during the periods of higher crude oil prices. This was also confirmed by economists, who explained that the higher the international price of crude oil, the higher the amount to […]\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[8],"tags":[],"gutentor_comment":0,"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":16978,"url":"https:\/\/naijatoox.com\/subsidy-fg-may-deduct-%e2%82%a62-4-trillion-palliative-from-federation-account\/","url_meta":{"origin":54425,"position":0},"title":"Subsidy: FG May Deduct \u20a62.4 Trillion Palliative From Federation Account","date":"November 26, 2021","format":false,"excerpt":"The Federal Government may deduct at least N2.4tn from the Federation Account to fund the N5, 000 cash palliative that will be handed over to 40 million poor Nigerians after the fuel subsidy has been removed next year. This is just as The PUNCH learnt on Thursday that the list\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/11\/14595000_zainabahmed680x365c_jpegadc4d3e304d892881a18217334512b99.jpeg?fit=680%2C365&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":16707,"url":"https:\/\/naijatoox.com\/zainab-ahmed-we-cant-continue-nigeria-losing-n250bn-monthly-on-fuel-subsidy\/","url_meta":{"origin":54425,"position":1},"title":"Zainab Ahmed: We Can\u2019t Continue, Nigeria Losing N250bn Monthly On Fuel Subsidy","date":"November 25, 2021","format":false,"excerpt":"Zainab Ahmed, minister of finance, budget and national planning, says the government can no longer sustain petrol subsidy payments which currently stand at about N250 billion monthly. Briefing state house correspondents after the federal executive council (FEC) meeting presided over by President Muhammadu Buhari on Wednesday, Ahmed said the payments\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/11\/14588760_zainabahmede1623433055179_jpeg2f2b439c4af309da5718e1999bb75dd9.jpeg?fit=720%2C540&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":16182,"url":"https:\/\/naijatoox.com\/economy-new-borrowing-underway-as-production-reserves-dwindle\/","url_meta":{"origin":54425,"position":2},"title":"Economy: New Borrowing Underway As Production, Reserves Dwindle","date":"November 22, 2021","format":false,"excerpt":"Widening deficits, poor crude oil production, rising subsidy payments and lingering foreign exchange challenge appear to be compounding Nigeria\u2019s revenue problems, making borrowing the last resort for the Federal Government in financing the N16.39 trillion 2022 budget. Unable to take advantage of higher oil prices, the call by some major\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/11\/14574240_nnpc1062x5981640x360_jpeg6c3450ea28dc496b847b3fea3143c4eb.jpeg?fit=640%2C360&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3407,"url":"https:\/\/naijatoox.com\/petrol-price-will-rise-to-n1000-per-litre-when-petrol-subsidy-ends-dpr\/","url_meta":{"origin":54425,"position":3},"title":"Petrol Price Will Rise To N1,000 Per Litre When Petrol Subsidy Ends \u2014 DPR","date":"July 20, 2021","format":false,"excerpt":"NEWS The Department of Petroleum Resources says the pump price of petrol in Nigeria may rise up to as much as N1000 per litre when the petrol subsidy regime comes to an end without an alternative energy source. DPR Director, Sarki Auwalu, stated this while responding to questions and comments\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/07\/image-65.png?fit=749%2C420&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2754,"url":"https:\/\/naijatoox.com\/pib-would-permit-only-dangote-refinery-nnpc-to-import-fuel\/","url_meta":{"origin":54425,"position":4},"title":"PIB Would Permit Only Dangote Refinery, NNPC To Import Fuel","date":"July 13, 2021","format":false,"excerpt":"NEWS REVEALED: Petroleum Industry Bill Would Permit Only Dangote Refinery, NNPC To Import Fuel If Passed Into Law If passed in its current form, the Senate version of the Petroleum Industry Bill will only permit two entities to import petroleum products into Nigeria: those who own active refining licenses and\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/07\/13841730_dangotebloomberg_jpegbabca7411961cf523116235a989dbc2f-300x211-1.jpeg?fit=300%2C211&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":28065,"url":"https:\/\/naijatoox.com\/allocation-increases-in-november-as-the-fg-states-and-lgs-share-%e2%82%a6675-9-billion\/","url_meta":{"origin":54425,"position":5},"title":"Allocation Increases In November As The FG, States, And LGs Share \u20a6675.9 Billion","date":"December 20, 2021","format":false,"excerpt":"The Federal Accounts Allocation Committee (FAAC) distributed N675.946 billion from the federation account to the Federal, States, and Local Government Councils on Friday. This is an N4.036 billion or 0.6 percent increase over the N671.910 billion shared last month for the month of October. This disclosure was made in a\u2026","rel":"","context":"In "NEWS"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/naijatoox.com\/wp-content\/uploads\/2021\/12\/14709117_governors1_jpeg3f4883359074922191979367e81b63bd.jpeg?fit=500%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/posts\/54425"}],"collection":[{"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/comments?post=54425"}],"version-history":[{"count":1,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/posts\/54425\/revisions"}],"predecessor-version":[{"id":54426,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/posts\/54425\/revisions\/54426"}],"wp:attachment":[{"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/media?parent=54425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/categories?post=54425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijatoox.com\/wp-json\/wp\/v2\/tags?post=54425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}