Fuel Prices Nigeria - Revision history

Ranisha at 13:01, 23 September 2014

2014-09-23T13:01:42Z

Armin Wagner at 14:45, 15 April 2013

2013-04-15T14:45:11Z

Armin Wagner at 12:09, 26 March 2013

2013-03-26T12:09:41Z

Armin Wagner at 16:02, 13 February 2013

2013-02-13T16:02:50Z

Tai Becker at 14:53, 11 December 2012

2012-12-11T14:53:37Z

Tai Becker: Protected "Fuel Prices Nigeria" ([edit=sysop] (indefinite) [move=sysop] (indefinite)) [cascading]

2012-12-04T10:51:32Z

Protected "Fuel Prices Nigeria" ([edit=sysop] (indefinite) [move=sysop] (indefinite)) [cascading]

Ingmar Schlecht: 1 revision

2012-12-02T17:35:27Z

1 revision

Ingmar Schlecht: Text replace - "Fuel Price Exchanre Rate Date" to "Fuel Price Exchange Rate Date"

2012-11-14T16:51:16Z

Text replace - "Fuel Price Exchanre Rate Date" to "Fuel Price Exchange Rate Date"

New page

{{Fuel Price Factsheet
|Fuel Price Country=Nigeria
|Fuel Currency=NGN
|Fuel Price Exchange Rate=148.6
|Fuel Price Exchange Rate Date=2010/11/17
|Fuel Price Last Updated=
|Fuel Price Composition=GIZ_IFP2012_Nigeria1.png
|Fuel Price Composition Fuel Type=Gasoline 95 Octane
|Fuel Price Composition Date=2011/02/01
|Fuel Price Composition Annotation=„Vessel Transport/Depot“ costs include vessel financing costs (2.25NGN/litre), lightering costs (3.56 NGN/litre), a Nigerian Ports Authority duty (0,6 NGN/litre), the main depot („Jetty depot“) throughput charge (0,8 NGN/litre) and a main depot storage charge (3,00 NGN/litre).

Diesel (referred to as „AGO“) is not subsidized. Therefore, expected diesel pump prices are about twice the price of gasoline.

There is currently no taxation on diesel and gasoline.

Source: http://www.pppra-nigeria.org/pricingtemplate.asp
|Fuel Price Composition 2=GIZ_IFP2012_Nigeria2.png
|Fuel Pricing Policies=The „Petroleum Products Pricing Regulatory Agency“ (PPPRA) is regulator and supervidor for the downstream market for liquid fuels in Nigeria. The PPPRA website offers plenty of information regarding fuel pricing policies, legislative and administrative framework and actual price compositions (www.pppra-nigeria.org).

PPPRA calculates „expected open market“ retail prices for all liquid fuels. The downstream sector is privatized in Nigeria. While there is a liberal, non-subsidized pricing for diesel, gasonline prices are regulated and immensely subsidized by the government (see 2.). However, an „Expected Open Market Price“ for gasoline (without subsidies) is published as well (see 1., 2-year-trend), so the extent of subsidies on gasoline can be recognized by customers. Pricing templates are published on a daily basis!

The „Petroleum Support Fund“ (PSF) basically finances the subsidy of gasoline. It is also stated, that PSF is being used for flattening volatile world market prices using a slate-calculation: A clearance between actual prices and calculated prices is being done between PSF and the distributors.

The pricing structure includes several taxes; However, all taxes have been zero as of Feb.2011.

The overall cost and pricing structure is quite powerful, as it accounts for future eventualities as the end of fuel subsidies, imposing of taxes and the deregulation or regulation of fuel types.
|Fuel Matrix Price Level=2
|Fuel Matrix Pricing Mechanism=2
|Fuel Transparency Price Composition=3
|Fuel Transparency Pricing Mechanism=3
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Pump prices and margins
|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/marketfundamentals.asp
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Wholesale Prices
|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/marketfundamentals.asp
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Price Composition
|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/pricingtemplate.asp
}}
{{Fuel Price Factsheet Source
|Fuel Price Factsheet Source Type=Other Information
|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/index.asp
}}

← Older revision		Revision as of 13:01, 23 September 2014
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	\|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/index.asp		\|Fuel Price Factsheet Source Link=http://www.pppra-nigeria.org/index.asp
	}}		}}
		+
		+	[[Category:Nigeria]]

@@ Line 5: / Line 5: @@
 Regulatory agencies: Petroleum Products Pricing Regulatory Agency (PPPRA) manages Petroleum Support Fund (PSF), which was established in Jan 2006 to stabilize domestic fuel prices. With the Central Bank of Nigeria as the custodian of the fund, PSF follows the principle of under-recoveries to be reimbursed and over-recoveries to be paid into the fund, based on international costs, charges, and controlled profit margins using a pricing template. Petroleum Equalization Fund Management Board equalizes transportation costs for pan-territorial pricing. PPPRA approves import quotas for gasoline and eligibility for subsidy reimbursement.
-Social protection: Leading up to the removal of the gasoline subsidy in Jan 2012, government developed a Subsidy Reinvestment and Empowerment (SURE) program. The objective of the SURE program is three-fold: to mitigate the immediate impact of subsidy removal, accelerate economic transformation through investing in critical infrastructure, and lay a foundation for a national safety net program. Social protection mechanisms under SURE include maternal and child health services, public works for women and youth, urban transport development, and vocational training. However, the full document was not issued until Nov 2011, less than two months before the subsidy removal, giving inadequate time for communication and preparation of the mitigation measures.
+Social protection: Leading up to the removal of the gasoline subsidy in Jan 2012, government developed a Subsidy Reinvestment and Empowerment (SURE) program. The objective of the SURE program is three-fold: to mitigate the immediate impact of subsidy removal, accelerate economic transformation through investing in critical infrastructure, and lay a foundation for a national safety net program. Social protection mechanisms under SURE include maternal and child health services, public works for women and youth, urban transport development, and vocational training. However, the full document was not issued until Nov 2011, less than two months before the subsidy removal, giving inadequate time for communication and preparation of the mitigation measures. The 2013 budget allocates ₦273.5 billion (US$1.7 billion) for the SURE program.
 Protests: Gasoline pricing has been highly politicized in Nigeria and labor unions strongly oppose deregulation. Immediately after the price increase in Jan 2012, the unions staged an eight-day strike, estimated to have cost the economy more than US$1 billion.

@@ Line 1: / Line 1: @@
 {{Fuel Price Factsheet
 |Fuel Price Country=Nigeria
-|Fuel Pricing Policies=The „Petroleum Products Pricing Regulatory Agency“ (PPPRA) is regulator and supervidor for the downstream market for liquid fuels in Nigeria. The PPPRA website offers plenty of information regarding fuel pricing policies, legislative and administrative framework and actual price compositions (http://www.pppra-nigeria.org).
+|Fuel Pricing Policies="Pricing policy: Gasoline prices are uniform, controlled by government, and infrequently adjusted. The gasoline price was ₦65/liter between Aug 2005 (US$0.50) and Dec 2011 (US$0.41), except in 2007 and 2008 when it was raised to ₦75/liter for a month and then lowered to ₦70/liter. Diesel prices have been deregulated for several years. Government removed the gasoline subsidy on Jan 1, 2012 and allowed the retail price to rise above ₦140 (US$0.88)/liter or higher, but following widespread protests lowered it within two weeks to ₦97 (US$0.61), still representing a 49% increase from the price in 2011. A Jun 2009 presidential directive deregulated the price of kerosene for household use, but Nigerian National Petroleum Corporation (NNPC) continues to sell kerosene at a heavily subsidized price of ₦50 (US$0.32)/liter and receive reimbursement from government. The kerosene price is about one third of the market price and the subsidy is intended to help poor households with lighting and cooking.
-PPPRA calculates „expected open market“ retail prices for all liquid fuels. The downstream sector is privatized in Nigeria. While there is a liberal, non-subsidized pricing for diesel, gasonline prices are regulated and immensely subsidized by the government (see 2.). However, an „Expected Open Market Price“ for gasoline (without subsidies) is published as well (see 1., 2-year-trend), so the extent of subsidies on gasoline can be recognized by customers. Pricing templates are published on a daily basis!
+Regulatory agencies: Petroleum Products Pricing Regulatory Agency (PPPRA) manages Petroleum Support Fund (PSF), which was established in Jan 2006 to stabilize domestic fuel prices. With the Central Bank of Nigeria as the custodian of the fund, PSF follows the principle of under-recoveries to be reimbursed and over-recoveries to be paid into the fund, based on international costs, charges, and controlled profit margins using a pricing template. Petroleum Equalization Fund Management Board equalizes transportation costs for pan-territorial pricing. PPPRA approves import quotas for gasoline and eligibility for subsidy reimbursement.
-The „Petroleum Support Fund“ (PSF) basically finances the subsidy of gasoline. It is also stated, that PSF is being used for flattening volatile world market prices using a slate-calculation: A clearance between actual prices and calculated prices is being done between PSF and the distributors.
+Social protection: Leading up to the removal of the gasoline subsidy in Jan 2012, government developed a Subsidy Reinvestment and Empowerment (SURE) program. The objective of the SURE program is three-fold: to mitigate the immediate impact of subsidy removal, accelerate economic transformation through investing in critical infrastructure, and lay a foundation for a national safety net program. Social protection mechanisms under SURE include maternal and child health services, public works for women and youth, urban transport development, and vocational training. However, the full document was not issued until Nov 2011, less than two months before the subsidy removal, giving inadequate time for communication and preparation of the mitigation measures.
-The pricing structure includes several taxes; However, all taxes have been zero as of Feb.2011.
+Protests: Gasoline pricing has been highly politicized in Nigeria and labor unions strongly oppose deregulation. Immediately after the price increase in Jan 2012, the unions staged an eight-day strike, estimated to have cost the economy more than US$1 billion.
-The overall cost and pricing structure is quite powerful, as it accounts for future eventualities as the end of fuel subsidies, imposing of taxes and the deregulation or regulation of fuel types.
+Consequences of subsidies: Fuel subsidies (implicit and explicit) increased six-fold in local currency between 2006 and 2011 and surpassed US$11 billion in 2011, constituting 4.7% of GDP. A market with deregulated diesel and regulated gasoline prices is unusual, leading to much greater apparent consumption of gasoline than diesel. According to IEA data, the gasoline-to-diesel consumption ratio increased from 2 in 2000 to 7 in 2010, nearly triple the second highest ratio in the world (United States) and possibly suggesting increasing smuggling of subsidized gasoline. Five illegal alternative markets for subsidized kerosene have been reported in the media: (1) much higher prices of kerosene on black markets, (2) adulteration of diesel with kerosene, (3) diversion of subsidized kerosene for household use to the aviation fuel sector, (4) out-smuggling to neighboring countries, and (5) presenting subsidized kerosene as having just been imported to claim the subsidy reimbursement for the second time. In Dec 2011, Major Oil Marketers Association of Nigeria warned that selling household kerosene as jet aviation fuel posed a serious safety threat. The scale of corruption also discredits government’s argument that savings from subsidy removal can be used more productively and equitably. A former secretary general of a workers’ union captured this sentiment as follows: “Until they stop corruption, all these ideas will not work… Nigeria is rich, we have money."
-"Gasoline prices are uniform, controlled by government, and only infrequently adjusted. The gasoline price was ₦65 a liter between Aug 2005 (US$0.50) and Dec 2011 (US$0.41), except in 2007 and 2008 when it was raised to ₦70 a liter. Diesel prices have been deregulated for years. A Jun 2009 presidential directive deregulated the price of kerosene for household use, but Nigerian National Petroleum Corporation (NNPC) continues to sell kerosene at a heavily subsidized price of ₦50 (US$0.32) a liter and receive reimbursement from government. Gasoline pricing has been highly politicized in Nigeria and labor unions strongly oppose deregulation. Government removed the gasoline subsidy on Jan 1, 2012 and allowed the retail price to rise to ₦141 (US$0.89) a liter, but reduced it to ₦97 (US$0.61) following widespread protests. A market with deregulated diesel and regulated gasoline prices is unusual, leading to much greater apparent consumption of gasoline than diesel. According to IEA data, the gasoline-to-diesel consumption ratio increased from 2 in 2000 to 7 in 2010, nearly triple the second highest ratio in the world (United States) and possibly suggesting increasing smuggling of subsidized gasoline. Petroleum Support Fund (PSF) reimburses companies for under-recoveries based on international product prices and costs, and Petroleum Equalization Fund Management Board equalizes transportation costs for pan-territorial pricing. A House of Representative investigation released in 2012 found a number of abuses and questionable transactions under PSF, including subsidy payments made to companies that had not applied for registration, and registering and paying companies with no infrastructure." (Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
 |Fuel Currency=NGN
 |Fuel Price Exchange Rate=148.6

@@ Line 4: / Line 4: @@
 |Fuel Price Exchange Rate=148.6
 |Fuel Price Exchange Rate Date=2010/11/17
 |Fuel Price Composition=GIZ_IFP2012_Nigeria1.png
 |Fuel Price Composition Fuel Type=Gasoline 95 Octane
 |Fuel Price Composition Date=2011/02/01
-|Fuel Price Composition Annotation=„Vessel Transport/Depot“ costs include vessel financing costs (2.25NGN/litre), lightering costs (3.56 NGN/litre), a Nigerian Ports Authority duty (0,6 NGN/litre), the main depot („Jetty depot“) throughput charge (0,8 NGN/litre) and a main depot storage charge (3,00 NGN/litre).
+|Fuel Price Composition Annotation=(1 US$=151.28 NGN)
-Diesel (referred to as „AGO“) is not subsidized. Therefore, expected diesel pump prices are about twice the price of gasoline.
+*„Vessel Transport/Depot“ costs include vessel financing costs (2.25NGN/litre), lightering costs (3.56 NGN/litre), a Nigerian Ports Authority duty (0,6 NGN/litre), the main depot („Jetty depot“) throughput charge (0,8 NGN/litre) and a main depot storage charge (3,00 NGN/litre).
+*Diesel (referred to as „AGO“) is not subsidized. Therefore, expected diesel pump prices are about twice the price of gasoline.
-There is currently no taxation on diesel and gasoline.
+*There is currently no taxation on diesel and gasoline.
 Source: http://www.pppra-nigeria.org/pricingtemplate.asp
 |Fuel Price Composition 2=GIZ_IFP2012_Nigeria2.png
-|Fuel Pricing Policies=The „Petroleum Products Pricing Regulatory Agency“ (PPPRA) is regulator and supervidor for the downstream market for liquid fuels in Nigeria. The PPPRA website offers plenty of information regarding fuel pricing policies, legislative and administrative framework and actual price compositions (www.pppra-nigeria.org).
+|Fuel Pricing Policies=The „Petroleum Products Pricing Regulatory Agency“ (PPPRA) is regulator and supervidor for the downstream market for liquid fuels in Nigeria. The PPPRA website offers plenty of information regarding fuel pricing policies, legislative and administrative framework and actual price compositions (http://www.pppra-nigeria.org).
 PPPRA calculates „expected open market“ retail prices for all liquid fuels. The downstream sector is privatized in Nigeria. While there is a liberal, non-subsidized pricing for diesel, gasonline prices are regulated and immensely subsidized by the government (see 2.). However, an „Expected Open Market Price“ for gasoline (without subsidies) is published as well (see 1., 2-year-trend), so the extent of subsidies on gasoline can be recognized by customers. Pricing templates are published on a daily basis!
@@ Line 25: / Line 24: @@
 The overall cost and pricing structure is quite powerful, as it accounts for future eventualities as the end of fuel subsidies, imposing of taxes and the deregulation or regulation of fuel types.
 |Fuel Matrix Price Level=2
 |Fuel Transparency Price Composition=3
 |Fuel Transparency Pricing Mechanism=3