Sunday Williams
5 January 2009
Petroleum products marketers in the country will soon receive billions in government subsidies for fuel products sold last year as the Federal Government releases N139 billion to the price regulatory agency.
The marketers had recently written to the government, asking for the release of the subsidy monies which accumulated last year when prices of crude oil at the international markets surged to record highs.
The marketers are entitled to the difference between the price at which they import fuel and the domestic selling price of N70 per litre.
The Federal Ministry of Finance said yesterday in Abuja that it has authorised the release of N138.64 billion to the Petroleum Products Pricing Regulatory Agency (PPPRA), "being outstanding subsidy for petroleum products for the months of June to October 2008 the Domestic Excess Crude Account."
An aide quoted the Minister of State for Finance Mr. Remi Babalola saying the releases are in two tranches: "N61.394 billion for outstanding subsidy claims for June to August 2008 and N77.244 billion in respect of July to October 2008 claims."
"It is expected that this will go a long way in dousing the anxiety of petroleum product marketers, importers and the general populace with regards to the issues of subsidy, petroleum products pricing and the availability of products generally," a statement by the Minister's Technical Assistant (Communications) Demola Solalu said.
PPPRA had said recently that it was waiting for the release of the funds to start paying the marketers.
The fuel marketers now make up to N14 profit per litre of petrol because of plummeting oil prices, prompting calls for reduction in the pump price of petroleum products.
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