FG saves N18.3bn in Six Weeks- Subsidy removal

The Federal Government’s savings as a result of the removal of subsidy on both petrol and kerosene are growing daily, OKECHUKWU NNODIM writes

 

Between January 1 and February 12 this year, an interval of about six weeks, the Federal Government made over N18.3bn as savings from the removal of subsidy on Premium Motor Spirit and House Hold Kerosene.

The government officially stopped subsidy on PMS, popularly known as petrol, on January 1, 2016, while on January 23 this year, it also ended the subsidy regime on kerosene, according to the pricing templates for both commodities obtained from the Petroleum Products Pricing Regulatory Agency.

Delayed subsidy Payments, leads to fall in Conoil Income

Conoil Nigeria Plc has succumbed to the delays in the payments of outstanding monies by governments as the company’s net income dropped 72.82 percent to end the 2014 financial year.

These delays have hindered most major petroleum oil marketers from importing products in the last two quarters of 2014 and earlier in the year as the banks were unable to finance LCs for importation due to the huge exposure to subsidy.

Conoil’s profit was N834.42 million in June 2015 as against N3.07 billion the previous year.