The Federal Government on Sunday announced the removal of subsidy on Premium Motor Spirit (PMS or petrol) with effect from Jan. 2.
The announcement was contained in a statement in Abuja signed by the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr Reginald Stanley.
“Following extensive consultation with stakeholders across the nation, the PPPRA wishes to inform all stakeholders of the commencement of formal removal of subsidy on PMS.
“Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after Jan.1.”
According to the statement, the development effectively jump starts the deregulation of the downstream sub-sector of the petroleum industry for PMS.
It directed service providers in the sector to henceforth procure products and sell same in accordance with the indicative benchmark price to be published fortnightly and posted on the PPPRA website.
It, however, assured consumers of adequate supply of quality products at competitive and non-exploitative prices and cautioned against any hoarding or panic buying.
The release added that PPPRA would step up its collaboration with other stakeholders to ensure that consumers were not exploited.
“The PPPRA, 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.’’
It assured that PPPRA would continue to engage stakeholders to ensure the proper and hitch free implementation of the policy.
With this development, the price of petrol will now be determined by market forces.
The subsidy removal had generated a lot of heated debate with the organised labour threatening strike if removed.
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