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Fuel subsidy hits N1.593tn, refinery rehabilitation gulps N54.66bn

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NAIJA NEWS: Fuel subsidy hits N1.593tn, refinery rehabilitation gulps N54.66bn [New Naija News] » Naijacrawl
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The government subsidized Premium Motor Spirit, also known as gasoline, with N1.



593 trillion between January and June 2022, according to the most recent data on the subject seen in Abuja on Monday.

Additionally, it was learned that over the course of the six-month period, the Nigerian National Petroleum Company Limited invested N54.66 billion in the rehabilitation of refineries.

According to data obtained from the NNPCL's presentation at the July 2022 meeting of the Federation Accounts Allocation Committee, gasoline subsidies began in June. Last month, the company changed its status from an oil company that was publicly traded to a business.

In July, it also made it clear that the Federal Government, rather than the State Government, was now responsible for paying gasoline subsidies.

Fuel subsidies or under-recovery/value shortfall, as described by NNPCL, increased to N1.593 trillion in the first half of 2022, according to an analysis of the presentation made in July to FAAC.

Figures from the report indicated that the amounts spent as subsidies on the commodity in January, February and March were N210.38bn, N219.78bn, and N245.77bn, respectively.

A total of N271.59bn, N327.1bn and N319.18bn were spent as subsidies in April, May and June respectively.

On refinery rehabilitation, the oil company spent N9.11bn in January and made no expense in February or March. It invested another N9.11bn in the facility.

It spent N9.11 billion on refinery rehabilitation in each of the months of April and May 2022, and N18.22 billion on the plant in June.

The Port Harcourt refinery's rehabilitation is expected to be completed by April 2023, according to Chief Timipre Sylva, Minister of State for Petroleum Resources, who also predicted that the facility would process 60,000 barrels of crude by the beginning of next year.

"It's quite impressive where they are now considering that this project only began in the second quarter of last year. It is on schedule. While touring the facility, Sylva said, "The commitment is to deliver 60,000 barrels per day from this refinery by the first quarter of next year, and, of course, we are quite happy."

The Port Harcourt Refining Company's $1.5 billion rehabilitation program was officially agreed to by the NNPC and Tecnimont SPA in April 2021. The facility was expected to be finished in 18 months.

The company's July FAAC presentation stated that the gross domestic crude oil and gas revenue for the month of June 2022 was N391.529bn.

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Ojo Sunday Victor, A Professional Graphics Designer, and a skilled Content Writer in Entertainment, News and Sport Update.!An Undergraduate in Ladoke Akintola University of Technology (LAUTECH, Ogbomoso). Read More

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