Chineme Okafor in Abuja
The Petroleum Products Pricing Regulatory Agency (PPPRA) last night said the federal government had not rescinded its decision to modulate the pump prices of petrol across filling stations in Nigeria, and that subsidy on petrol has also not been reintroduced.
It said in a statement that was signed by its acting Executive Secretary, Mrs. Iyoyo Sotonye, in Abuja that contrary to media reports, the government would continue with its price modulation policy which it currently uses to fix petrol prices.
Sotonye also said that accumulated funds from the government’s over recovery on prices within the first quarter import allocation would be used to make up any noticeable imbalances in April, and that no fund was provided for subsidising petrol consumption in the 2016 budget.
“Contrary to reports by a section of the Nigerian media, the federal government has not reversed its decision to remove subsidy on petrol more so when there is no appropriation for subsidy in the 2016 budget,” said Sotonye.
She further stated: “The PPPRA wishes to state categorically that what still exists is price modulation policy, through which it considers and reviews pump price of PMS quarterly.”
According to her, “the funds from over recovery in the first quarter (Q1) shall be duly utilised for whatever noticeable imbalance in April 2016 in line with the price modulation principle.”
Sotonye then noted that the agency was committed to ensuring seamless supply and distribution of petroleum products in the country.