…pays N166bn outstanding subsidy claims

The Federal Government has approved the release of first quarter (Q1) 2015 allocation to marketers for the importation of petroleum products into the country. A statement issued by the Petroleum Products Pricing Regulatory Agency (PPPRA), said the early release is in furtherance of the government’s resolve at ensuring continuous products supply in the system, aimed at sustaining the serenity in the downstream industry.

According to the statement, the Executive Secretary of the PPPRA, Mr. Farouk Ahmed, while calling on motorists not to engage in panic buying, assured that, “there is ample supply of petroleum products in the country and discharges and truck-out had continued in spite of the holidays and the festive periods”. The PPPRA further explained that apart from facilitating an improved national Premium Motor Spirit (PMS) supply and stock build-up, the latest effort is also to enable marketers make adequate preparations towards products sourcing and importation early in the New Year.

The PPPRA attributed all the proactive initiatives put in place at ensuring products availability across the nation, to the support and direction of the Minister of Petroleum Resources. The Agency on their part, is committed to prompt processing of documents for all imported products duly brought into the country, says Mr. Ahmed.

The Petroleum Minister had commenced a regime of early release of quarterly PMS allocations in addition to supplementary allocations to complement the national demand. According to the PPPRA, the approvals, apart from providing additional imports to supplement the prevailing stock level in the system is now responsible for the sustained availability of petroleum products across the country at regulated prices. Also, the Federal Government has approved the payment of about N166 billion to petroleum marketers as reimbursement for outstanding subsidy claims. According to sources at the Federal Ministry of Finance, the payment is for batch I to part of batch M. However, the other part of batch M, and batches N, O, and P to the tune of N105 billion are still at the Debt Management Office (DMO) awaiting payment. This part payment is geared towards ensuring stability in the fuel supply as well as to encourage banks and other financial institutions, which were hitherto, reluctant in issuing letters of credit to finance petroleum products importation.