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BIG STORY

Petrol Landing Cost Hits N232, Subsidy Rises To N5.58bn Daily

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The landing cost of Premium Motor Spirit being imported into Nigeria surged by more than 60 per cent between December 2020 and mid-June this year, although the pump price of the product remained unchanged.

From an average of N143.60 per litre in December, the landing cost of petrol rose to N231.98 per litre on June 16 this year on the back of the rally in global oil prices and the depreciation of the naira against the dollar.

The Petroleum Products Pricing Regulatory Agency had in March this year released a pricing template that indicated the guiding prices for the month.

The template, which showed that the petrol pump price was expected to range from N209.61 to N212.61 per litre, was greeted with widespread public outcry and was later deleted by the agency from its website.

The pump price of petrol has remained at between N162 and N165 per litre at many filling stations in Lagos since December.

The template, which was based on an average oil price of $62.22 per barrel for February and an exchange rate of N403.80 to a dollar, showed that the landing cost of petrol was N189.61 per litre.

Last month, the Central Bank of Nigeria devalued the naira as it adopted the NAFEX exchange rate of N410.25 per dollar as its official exchange rate, days after removing the N379/$ rate from its website.

The price of crude oil, which accounts for a large chunk of the final cost of petrol, has continued to rise in recent months, with Brent, the international oil benchmark, closing at a record high of $76.18 per barrel last Friday, up from $73.88 per litre on June 16.

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, said on March 25 that with the current market situation, the actual price of petrol could have been anywhere between N211 and N234 per litre.

He said the Federal Government was subsidising petrol with about N100bn to N120bn monthly (N3.3bn-N4bn daily) as it was being sold for N162 per litre.

It was reported on April 20, 2021, that the estimated subsidy on petrol would gulp N500bn in the first five months of this year as the Federal Government decided to leave the pump price of petrol unchanged in the period despite the increase in global oil prices.

Based on the PPPRA template and Platts data, the expected pump price of the product stood at N254.90 per litre as of June 16, up from N239.31 per litre on April 16.

The expected retail price of N254.90 per litre and the current pump price of N162 per litre indicate a subsidy of N92.98 per litre as of June 16, compared to N77.31 per litre on April 16.

With daily petrol consumption put at about 60 million litres by the NNPC and a subsidy of N92.98 per litre, daily subsidy increased to N5.58bn on June 16 from N4.64bn on April 16.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $691.25 per metric tonne (N211.47 per litre) on June 16 from $642.25 (N193.39 per litre) on April 16.

The PPPRA, in its March template, used an average cost of $561.96 per MT (N169.22 per litre) and an average freight rate of $21.63 per MT (N6.62 per litre).

Other cost elements that make up the landing cost include lightering expenses (N4.81), Nigerian Ports Authority charge (N2.49), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N2.17).

The pump price is the sum of the landing cost, wholesaler margin (N4.03), admin charge (N1.23), transporters allowance (N3.89), bridging fund (N7.51), marine transport average (N0.15), and retailer margin (N6.19).

The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

This month, the International Monetary Fund expressed concern over the resurfacing of fuel subsidies in Nigeria, describing it as ‘concerning, particularly in the context of low revenue mobilisation’.

The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 following the sharp drop in crude oil prices.

“The recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not reemerge,” the Nigerian government had told the IMF in the letter of intent dated April 21, 2020, with respect to its request for emergency financial assistance of $3.4bn.

In February this year, the IMF said in a report after its Article IV consultation with Nigeria that the Nigerian authorities expressed a strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021.

But petrol subsidy re-emerged earlier this year as the government did not allow the pump price of the product to reflect the significant rise in oil prices.

“The mission expressed its concern with the resurgence of fuel subsidies. It reiterated the importance of introducing market-based fuel pricing mechanism and the need to deploy well-targeted social support to cushion any impact on the poor,” the IMF said on June 17.

BIG STORY

Road To 2027: ‘We’re Doing Everything To Bring Peter Obi Back, He’s Great Asset’ — PDP

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Ibrahim Abdullahi, the Deputy National Publicity Secretary of the Peoples Democratic Party (PDP), stated that the party is working on strategies to bring Peter Obi back into the party.

He referred to the former Anambra State governor as someone shaped by the PDP and said he holds significant value for any political organization.

He pointed out that despite alleged rigging and manipulation during the 2023 elections, the Labour Party’s presidential candidate still secured over six million votes.

Peter Obi, who was once the PDP’s vice presidential candidate, left the party for the Labour Party ahead of the 2023 general election.

He secured the Labour Party’s presidential ticket and ran against Bola Tinubu of the All Progressives Congress (APC) and Atiku Abubakar of the PDP.

Obi emerged victorious in twelve states, including the Federal Capital Territory (FCT), Abuja, but placed third behind Atiku and eventual winner Tinubu, according to the final results announced by the Independent National Electoral Commission (INEC).

Speaking during an appearance on Arise News on Thursday night, Abdullahi noted that the PDP is making efforts to welcome Obi back into its ranks.

“Peter Obi is our product, and the PDP indeed wants to get him back. He is a very great capital for any political party, and any political party that will have him will be to their advantage,” he said.

“The truth of the matter is if he had not gone the way he did in the last dispensation and proved that mettle to generate over six million in spite of the rigging and frustration of his chances in many of the states. Peter Obi is truly a political capital no doubt about it,” he added.

Recently, Peter Obi said he remains a Labour Party member but intends to collaborate with a new Coalition formed under the African Democratic Congress.

Meanwhile, Atiku Abubakar, former Vice President and the PDP’s presidential candidate in the last two elections, has left the party.

Atiku is among several political figures forming a coalition aimed at unseating the current president in the 2027 elections through the ballot box.

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BIG STORY

Trump Diagnosed With Vein Issue After Leg Swelling, Hand Bruising

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US President Donald Trump has been confirmed to have a long-term but non-serious vein condition, according to the White House on Thursday, following public concern over his noticeably bruised hand and swollen legs.

At 79, Trump was diagnosed with “chronic venous insufficiency” after he “noted mild swelling in his lower legs” over the past few weeks, as stated by White House Press Secretary Karoline Leavitt.

Leavitt explained that the visible bruising on Trump’s right hand was due to “frequent handshaking” and his use of aspirin as part of a “standard cardiovascular prevention regimen.”

Trump became the oldest person ever to take office as US president when he began his second term in January, succeeding Democrat Joe Biden, who was 82 when he left the presidency.

The Republican leader often highlights his stamina and fitness, frequently golfing, and the administration recently shared an image portraying him as Superman.

In April, Trump said that after a routine check-up, he was in “very good shape.”

Leavitt’s comments came amid online speculation about Trump’s swollen ankles, particularly noticeable during the recent FIFA Club World Cup final in New Jersey, and his bruised hand.

She said Trump requested that she share a statement from his doctor about the condition “in the effort of transparency.”

According to Leavitt, he underwent “a comprehensive examination” and ultrasound scans, which diagnosed chronic venous insufficiency, a common and non-serious condition often found in individuals over 70.

This condition is caused by leg veins that can no longer effectively keep blood moving as they should.

“Importantly, there was no evidence of deep vein thrombosis or arterial disease,” she added.

Medical evaluations revealed that Trump had a “normal cardiac structure and function, no signs of heart failure, renal impairment or systemic illness,” Leavitt, 27, noted.

On the bruising, she explained, “This is a well-known and benign side effect of aspirin therapy. And the president remains in excellent health.”

The White House had previously downplayed concerns over Trump’s hand bruising, attributing it to handshakes.

The health of American presidents has always been a major topic of public interest, and with the two oldest presidents ever holding office in recent years, the focus has only increased.

Meanwhile, Trump’s administration has recently intensified claims that Biden’s presidency concealed evidence of his physical and mental decline.

Biden’s health was a central topic during the 2024 campaign, which he ended after a poor debate showing against Trump.

House Republicans have issued subpoenas to Biden aides, including his doctor, as part of an inquiry into Biden’s mental fitness.

Trump has claimed, without proof, that Biden’s use of an “autopen” to authorize official documents like pardons indicated he was unfit for office. The autopen — a mechanical tool used to replicate signatures — has long been utilized by US presidents and other high-ranking officials.

Biden was diagnosed with aggressive prostate cancer in May. He has rejected concerns about his mental sharpness while in office and said he believed he would have secured a second term.

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BIG STORY

Every Government Has A Cabal, Buhari’s Administration Had One — Gambari

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Ibrahim Gambari, who served as chief of staff to the late former President Muhammadu Buhari, has confirmed that Buhari relied on a “cabal.”

He clarified, however, that this was not unique to Buhari’s time in office.

Gambari made the remark during a preview of an interview with Laolu Akande, the former spokesperson to ex-Vice-President Yemi Osinbajo, set to air on Friday.

Concerns over cabals in Nigerian presidencies have been long-standing, especially regarding the influence of unelected individuals on major governance and policy decisions.

These tight-knit and often discreet groups are known to influence appointments, key policies, and decisions — at times, more than formal institutions or the elected leader.

Gambari admitted that Buhari had his own small inner circle.

“I would address it honestly, and I want to and on record,” he said.

“They say there’s a cabal or was a cabal — there was, but every government has cabal. It is what they call them.

Some call it ‘kitchen cabinet’, some may call it ‘think tank’. Obasanjo had a group of people, the Aboyades of this world and others, and a small group of people.

It is the nature of the office of president that they must have some people in and out of government that they can lay their hair down, talk to freely.

So, some have more powers than others, but every government, I make it bold say, has a cabal of one kind of or whatever name it is called.”

Back in 2018, Buhari’s wife Aisha raised concerns over a few individuals allegedly wielding significant power in her husband’s administration at the expense of Nigerians.

Buhari, however, downplayed her warnings.

More recently, Solomon Dalung, a former minister, claimed that the group of insiders around President Bola Tinubu is far more dangerous, ambitious, and refined than the “clique that cocooned” Buhari.

Dalung, who served as Buhari’s youth and sports minister from 2015 to 2019, said that while Buhari’s cabal was less educated and inexperienced in politics and governance, Tinubu’s allies are “sophisticated, ambitious, and educated, with sound knowledge of power dynamics.”

He described the Tinubu cabal as the most dangerous in Nigeria’s political history.

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