Nigeria's fuel subsidy hits N2.84trn in 17 months

The Major Oil Marketers Association of Nigeria has said it is seeking clarification from the federal government on how the suspension of petrol subsidy removal will affect market operations.

Recall that the federal government had last week suspended its plan to remove fuel subsidy in June this year. It also proposed to extend the subsidy removal implementation period by 18 months, saying it would engage the legislature for the amendment of the Petroleum Industry Bill.

The fuel subsidy regime in the country was supposed to come to an end in February, going by the PIA, which was signed into law by the President, Major General Muhammadu Buhari (retd.).

The Chairman, MOMAN, Mr Olumide Adeosun, said on Monday that the decision to suspend petrol subsidy removal “does not bode well” for the petroleum downstream sector.

“The members of the association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act as well as market operations,” he said.

He recalled that the reforms contained in the PIA were a combination of several decades of engagement with internal and external stakeholders, capturing local and international best practices to encourage investments in the downstream sector, optimise costs, ensure transparency, and upgrade refineries, depots, pipelines, trucks, and filling stations.



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