New Year Gift: Nigeria Removes Fuel Subsidy

. Petrol To Cost N 141 Per Litre

The Federal Government of Nigeria gave citizens of the country a rather bitter New Year gift as it announced the removal of the fuel subsidy hitherto enjoyed on Premium Motor Spirit (PMS). According to an announcement made by the Petroleum Products Pricing Regulatory Agency (PPRA), the removal takes effect from Sunday, January 1, 2012. Petrol which was sold at N 65 per litre before the subsidy removal will now cost N 141 per litre.

The PPRA stated on Sunday that ‘the downstream sub-sector of the petroleum industry has been deregulated for PMS and that service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published fortnightly and pasted on the PPRA website.’

Petroleum products marketers were also urged to note that “no one will be paid subsidy for PMS discharges after January 1, 2012.” The statement issued by the PPRA also read that “consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding. The PPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.”