The Inside Story of Petroleum Subsidy Saga

Note: Illuminating analysis

This Day

30 October 2011

The Inside Story of Petroleum Subsidy Saga

Lawson A. Omokhodion

analysis

No doubt, elements of subsidy exist in the pricing of petrol and kerosene sold in Nigeria. But before the federal government throws all of us into an unprecedented confusion by an unplanned removal of this subsidy, we must ask questions because once the nation starts to burn you never know.

The refineries in Nigeria produce some quantity of petrol, what is the cost of that fuel? Diesel is deregulated already and so nobody bothers about that type of fuel. What of kerosene, called DPK, how much does it cost to produce it in Nigeria and how much is it sold? What of jet A1, also known as DPK (the fuel to fly aeroplanes), where is it from and how much is it sold? The back page article in the PILOT newspaper of October 15, 2011 should interest a lot of readers because it contained a summary of per litre fuel pump price in both OPEC and non-OPEC economies.