Leadership (Abuja)

26 February 2014

Nigeria: N832 Billion Spent On Fuel Subsidy in 2013 - PPPRA

The Petroleum Products Pricing Regulatory Agency (PPPRA) has said that it paid a total subsidy claims of N832 billion to fuel marketers under the Petroleum Support Fund (PSF) in 2013.

This was disclosed by the immediate past executive secretary of the agency, Reginald Stanley, while handing over to his successor, Farouk Ahmed, in Abuja yesterday, after attaining 35 years of service.

Stanley noted that the N832 billion paid as fuel subsidy in 2013 was a little lower that the N862 billion paid in 2012.

The former PPPRA boss, in his hand-over remarks, also disclosed that the downstream petroleum industry witnessed total investment inflow of about N70 billion under his watch, adding that the agency was able to eliminate previous manipulation of the bill of lading and made cost savings for government.

While emphasising that the agency underwent strategic reform measures aligned with government's plan for the oil and gas industry, he said the PPPRA saved N409 billion and N326.57 billion for government in 2012 and 2013.

The savings, he explained arose from the reduction in daily fuel consumption figure from 60.25 million litres per day in 2011 to 39.79 million litres in 2012, while it recorded 42.11 million litres per day in 2013, a reduction of 18.14 million litres compared with the 2011 figure.

"What is spectacular about the 2013 consumption figure is that it showed a modest increase of 5.5 per cent in the 2012 figure in an economy growing at 6.9 per cent per annum. Statistically, gasoline consumption tracks the gross domestic product (GDP) growth very closely," Stanley said.

Noting that the pruning in the number of marketers, deployment of global tracking of vessels, among others, were part of measures adopted, Stanley said, "today, it has been well established that national consumption is around 40 million litres per day."

He further appealed to the National Assembly to pass the Petroleum Industry Bill (PIB) in order to sustain a vibrant downstream sector, adding that in the last 24 months many depots and jetties have been built through private initiates, thereby generating thousands of jobs in the economy.

Remarking, Ahmed while thanking government for the opportunity to serve, urged staff of PPPRA to ensure the sustenance of the ongoing reform in the agency, even as he warned against any form of gossiping or sycophancy.

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