With the take-off of deregulation of the downstream sector of the oil
industry yesterday, Nigerians will now have to pay more for fuel. In
fact, petrol may cost as much as N140 per litre. It was N65 on Saturday.
The Federal Government, by the policy, defied all
criticisms by going ahead with its fuel subsidy removal effective from
January 1, 2012.
It was President Goodluck Jonathan’s New Year gift to Nigerians.
A statement issued yesterday by the Petroleum Products
Pricing Regulatory Agency (PPPRA) announced the formal removal of the
subsidy.
Reginald Stanley, Executive Secretary, PPPRA, in a
statement said, the decision was in line with wide consultations with
stakeholders across the nation.
The statement reads in part: “Following extensive
consultation with stakeholders across the nation, the Petroleum Products
Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of
the commencement of formal removal of subsidy on Premium Motor Spirit
(PMS), in accordance with the powers conferred on the agency by the law
establishing it, in compliance with Section 7 of PPPRA Act, 2004”.
Stanley also announced the effective take-off of
deregulation of the downstream sub-sector of petroleum industry as he
also stated that fuel marketers who discharge products after January 1,
2012 will not be paid subsidy on fuel.
By this announcement, the PPPRA boss explained further
that the downstream sub-sector of the petroleum industry is hereby
deregulated for PMS (petrol). 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 posted on the PPPRA
website.
“Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January, 2012.
“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.
Stanley stated that 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.
He said DPR will ensure that the interest of the consumer
in terms of quality of products is guaranteed at all times and in line
with international best practice.
In the coming weeks, the PPPRA will engage stakeholders in
further consultation to ensure the continuation of this exercise in a
hitch-free manner.
President Jonathan’s pronouncement late last year that
government will no longer pay for the difference on the cost of fuel
importation by marketers has thrown the country and its citizens into a
battle with the Federal Government.
The debate became hotter as more condemnations and
criticisms trailed the planned policy as many described it as an
unpopular one which is representing the interest of very few Nigerians.
Since the President presented this year’s budget of N4.749
trillion to the National Assembly on December 13, 2011, there was no
provision for fuel subsidy.
The development fuelled speculation that the government
was bent on removing the subsidy.
The Co-ordinating Minister for the Economy/Finance
Minister, Dr. Ngozi Okonjo-Iweala, said the government was consulting
more stakeholders before taking the action.
Also, her Information counterpart, Mr. Labaran Maku, in
justifying why subsidy must eventually go, said the government had not
decided on the take-off date.
The President, had on December 15, 2011 during the
Christmas carol service at the Villa in Abuja, assured that he would not
be party to inflicting pains on Nigerians, but warned that the country
cannot continue borrowing to fund the economy.
The human rights/community, organized Labour are up in
arms with the government on the removal, threatening to make the country
ungovernable. The National Assembly was yet to approve of Jonathan’s
request.
http://sunnewsonline.com/webpages/news/national/2012/jan/02/national-02-01-2012-001.html
