{"id":200215,"date":"2022-06-30T07:23:59","date_gmt":"2022-06-30T06:23:59","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=200215"},"modified":"2022-06-30T07:23:59","modified_gmt":"2022-06-30T06:23:59","slug":"reps-to-investigate-petrol-subsidy-regime-from-2017-to-2021","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/06\/30\/reps-to-investigate-petrol-subsidy-regime-from-2017-to-2021\/","title":{"rendered":"Reps to investigate petrol subsidy regime from 2017 to 2021"},"content":{"rendered":"<p>The house of representatives has resolved to investigate &#8220;petroleum products subsidy regime&#8221; in the country.<\/p>\n<p>Speaker of the house, Femi Gbajabiamila is scheduled<span class=\"s1\">\u00a0to name members of the ad hoc committee which is expected to probe the \u201cpetroleum product subsidy regime\u201d from 2017 to 2021 on Thursday.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The resolution was passed during plenary session on Wednesday following the adoption of a motion sponsored by Sergius Ogun from Ogun state.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">Speaking on the floor of the house while moving his motion, Ogun said the <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/06\/28\/nnpc-fuel-subsidy-refinery-rehabilitation-gulped-n1-3tn-in-five-months\/\">subsidy<\/a> regime has been \u201cunscrupulously\u201d used and demands legislative intervention.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cAs of 2002, the NNPC\u2019s purchase of crude oil at international market prices stood at 445,000 barrels per day in order to enable it to provide petroleum products for local consumption,\u201d the lawmaker said.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cAs of 2002, the installed capacity of Nigeria\u2019s local refineries stood at 445,000 barrels per day, however, their capacity utilization began to nosedive and eventually fell completely to zero due to the ineffectiveness and alleged corruption of critical stakeholders in the value chain.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cDue to the decline in the production capacity of the refineries, NNPC found it more convenient to export domestic crude in exchange for petroleum products on trade by barter basis described as Direct Sales Direct Purchase (DSDP) arrangement.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cComponent costs in the petroleum products subsidy value chain claimed by the NNPC is highly over-bloated while the transfer pump price per litre used by the NNPC in relation to PPMC is underquoted as N123-N128 instead of N162-N165 and this fraudulent under-reporting of N37-N39 per litre translates into over N70 billion a month or N840 billion a year.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cConsumption rate of petroleum motor spirit (PMS) is 40 million to 45 million per day, however, the NNPC uses 65 million to 100 million litres per day to determine subsidy as discoverable from NNPC\u2019s monthly reports to the federal allocation committee (FAAC).<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cSubsidy regime has been unscrupulously used by the NNPC and other critical stakeholders to subvert the nation\u2019s crude oil revenue to the tune of over $10 billion with records showing that as of 2021, over $7 billion in over 120 million barrels have been so diverted.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cThere exists evidence that subsidy amounts are being duplicated, thus subsidy is charged against petroleum products sales in the books of NNPC as well as against crude oil revenue in the books of NAPIMS to the tune of over N2 trillion.\u201d<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The motion was adopted when it was put to a voice vote by Gbajabiamila.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">The ad hoc committee members to be named on Thursday has eight weeks to carry out the investigation and report back to the house.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The house of representatives has resolved to investigate &#8220;petroleum products subsidy regime&#8221; in the country. Speaker of the house, Femi Gbajabiamila is scheduled\u00a0to name members of the ad hoc committee which is expected to probe the \u201cpetroleum product subsidy regime\u201d from 2017 to 2021 on Thursday. The resolution was passed during plenary session on Wednesday [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":35392,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[41068,41067,1412,1193,13745],"class_list":["post-200215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-direct-sales-direct-purchase-dsdp-arrangement","tag-femi-gbajabimila","tag-house-of-representatives","tag-nnpc","tag-petrol-subsidy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Reps to investigate petrol subsidy regime from 2017 to 2021<\/title>\n<meta name=\"description\" content=\"The house of representatives has resolved to investigate &quot;petroleum products subsidy regime&quot; in the country.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/news\/2022\/06\/30\/reps-to-investigate-petrol-subsidy-regime-from-2017-to-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reps to investigate petrol subsidy regime from 2017 to 2021\" \/>\n<meta property=\"og:description\" content=\"The house of representatives has resolved to investigate &quot;petroleum products subsidy regime&quot; in the country. 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