The Petroleum Products Pricing Regulatory Agency (PPPRA) has explained why it reduced the numbers of companies participating in the Petroleum Support Fund (PSF) scheme from 128 to 39.
According to the agency, the move was aimed at ensuring better management of participants in the PSF Scheme, while promoting local content development.
The agency said it restricted participation to only owners of coastal discharge/depot facilities "thus reducing participation in the PSF Scheme from 128 to 42 and now to 39 oil companies. This move further motivated more investments in the development of petroleum handling facilities, as well as ensure better management of participants in the PSF Scheme, while promoting local content development."
The PPPRA witnessed a change of management in November last year, in a move by the Federal Government to ensure greater transparency and accountability as well as good governance in the management of the PSF.
The agency in a report of its activities in the last six months noted that "before now, there was a noticeable disparity observed amongst relevant agencies of government over figures on estimated daily fuel consumption and annual payments for prevailing subsidy regime.
"In view of the inefficiencies in the sector and the huge amount provided by the government to pay for subsidy, it became apparent that the days of fuel subsidy payments were numbered, as the regime became most unsustainable."
However, the Executive Secretary of PPPRA, Reginald Stanley, said the agency carried out first-in-history stock-taking exercise on January 1 and 16 2012, to determine 2011 end-of-year closing and 2012 opening stock, for the purpose of accurate calculation of national product consumption figures.