Marketers To Refund N13.81/Litre Over-priced Balance To FG

The federal government has said it would send a debit note to every marketer to refund over-recovered money to government, as petrol is now over priced by N13.81 per litre at the current N86.50 a litre approved pump price for oil marketers.

This was disclosed yesterday by the out-going Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Farouk Ahmed, while handing over to the General Manager, Administration and Human Resources, Moses Mbaba, who is the most senior officer in the agency.

This is as minister of state for Petroleum Resources, Dr Ibe Kachickwu, yesterday stated that the petrol price modulation mechanism currently in place will ensure that the Federal Government records zero expenses on fuel subsidy in 2016.

Delivering the 45th Convocation Lecture of the University of Nigerian Nsukka under the theme: The Petroleum Industry and the Future of the Nigerian National-Oil Resource Management and the Implication for National Security and Economic Survival, Kachikwu noted that the zero fuel subsidy regime is already in place and would be sustained based on the prevailing modified pricing template for petroleum products which has eliminated extraneous cost elements.

He explained that “Without necessarily removing subsidy the government will spend zero amounts in subsidy in 2016. This may sound unbelievable to some people but that is part of the change agenda of the present administration of President Mohammadu Buhari,“ according to a statement yesterday by the spokesman of the Nigerian National Petroleum Corporation, Ohi Alegbe.

While hinting that Nigerians could pay less for petrol in the second quarter going by the current trend, Ahmed stated that price modulation regime has instilled efficiency in the system.

“There are the possibilities of Nigerians paying less for petrol in the second quarter of the year. The Minister of State will look at all the facts pragmatically and arrive at a just figure for petrol,” Ahmed said, adding that the reforms which were introduced when he assumed office have succeeded in eliminating all the frauds that were associated with subsidy regime especially since 2011.

Ahmed explained that so far, N8 has emerged the average figure of over recovery for the year, saying, “indeed as at Tuesday close of market, over recovery was N13.81. The PPPRA would now send a debit note to every marketer that falls within that bracket to refund the money to government.