This was announced by Nigeria’s Petroleum Products Pricing Regulatory Agency (PPPRA) in a statement.
According to the PPPRA, a litre of petrol, Premium Motor Spirit (PMS), will now sell for N141.
Courtesy of the Vanguard News, PPPRA’s statement reads:
“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.”
“By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly 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.”
“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.”
“The 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.”
Ghana, December 29, 2011 also removed subsidies on fuel thereby increased prices on petroleum products. The country cited two key factors – the increase in crude oil prices and the depreciation of the Ghana cedi.
A statement signed by Mr Alexander Mould, Acting CEO of the National Petroleum Authority (NPA), said the prices of petrol and diesel will go up by 15% each at GHp175.48 per litre and GHp 177.09 per litre respectively while LPG will go up by 30% at GHp 136.19 per kilo.
The cut of fuel subsidies in Ghana and Nigeria is reported to have been due to pressure from the International Monetary Fund (IMF).
The Reuters news agency reports December 29, 2011 that “Ghana, which joined the club of oil producers in West Africa last year, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies.”
Countries such as Nigeria, Guinea, Cameroon and Chad are reported to have come under similar intense pressure from the IMF to remove subsidies, the report said.
According to Reuters, the IMF argued that the fuel subsidies are not effective in directly aiding the poor but rather promote corruption and smuggling.
By Ekow Quandzie