Nigeria: Government Agency Annouces Removal Of Oil Subsidy

In a press release, the Petroleum Products Pricing Regulatory Agency of Nigeria, (PPPRA) has announced the removal of oil subsidy. Starting this day January first, Nigerians will be paying N141 (about $0.90) per litter of gasoline. Nigeria is the sixth largest oil producer in the world and a member of OPEC. In some member countries like Venezuela, gas price is about $0.5, Saudi Arabia $0.12, Algeria $.0.20, Qatar $0.22, United Arab Emirates $0.37, and Iran $0.42.


Below is the press release from the PPPRA:

PPPRA Announces Formal Removal of Subsidy on Premium Motor Spirit (PMS)
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.

Signed:

Reginald Stanley
Executive Secretary, PPPRA.

  1. 'deji Reply

    Oh Jonah….u don’t dare a people already pushed to the wall.Under the pretense of engaging the people,your govt struck the people defenselessly………we either fight back or perish…..Oh my….can’t remember the last time I rode a bicycle…guess that’s gonna be the new fad now.

  2. COMRADE WALE ADESUYAN NELSON Reply

    PRESIDENT GOODLUCK JONATHAN DIRECTED THE PETROLEUM PRODUCTS PRICING REGULATORY AGENCY OF NIGERIA(PPPRA) TO ANNOUNCED THE REMOVAL OF OIL SUBSIDY ON 1ST OF JAN.2012 DAT IS GIFT FOR NIGERIAN AFTER ALL NIGERIA ELECTORATE HAS DONE FOR HIM. SO FAST HE SHOW HIS TRUE COLOUR TO NIGERIAN.I KNOW 4RM THE DAY HE PRESENTED D 2012 BUDGECT DAT HE HAD REMOVED OIL SUBSIDY.HOW MANY DAY CONSORTATION B4 D REMOVAL.THE NLC/TUC MUST STAND FIRM LET ALL NIGERIAN RISE UP AND MAKE NIGERIA ONGOVERNABLE HIM. DURING HIS CAMPAIGN BILL BOARD SAYS GOODLUCK NIGERIAN AFTER SIX MONTHS IS BADLUCK NIGERIAN.MINMUM WAGE ACTS IS NOT IMPLEMENTED SINCE THE PASSAGE.PRESIDENT GUDLUCK LACK EXPERIENCE HE’S NOT CAPABLE 2 RULE NIGERIA

  3. Ohile Reply

    U are one of those Nigerians who just talk in d air without reasoning ability.People like u, Nelson, believe in stagnation. Although Nigeria government can’t be trusted,let’s experiment on the removal of fuel subsidy & see how it works.

  4. larry azubuike Reply

    the president have show that he does not care about the Nigeria people, how can he decided to put more hardship to the common man after all that we have been through, Nigeria voted for this man believing that he is one of them but after taken oath of office he join the evil rulers and have decided to pay Nigeria Back with evil.

    Jonathan note that after your four years in office you will leave Aso Rock and your people in Bayasia will be waiting for you to give account of your four years in office. Nigeria have made the worse mistake for voting you into power and be ready for the people and God because the voice of the people is the voice of God. How can you say that you will use the money from Subsidy to build infrastructure what about the only derive from the sells of our crude oil and other revenue what have you done with it? now you want to remove the only thing the poor Nigerians are benefiting as citizens of this nation.

  5. larry azubuike Reply

    Look Mr. President of Nigeria Nigeria have about 30% unemployment and the USA have 8% unemployment, the USA Government have decided to cut tax to its citizens and also increase pay roll to unemployment but the Nigeria Thinking President is only thinking on how to increase pump price and claim it is for the benefit of the Citizen. You have failed the trust Nigerians have on you and you are a total failure. A president who claiming think well before taking any decision can at this point of time remove subsidy you are a total failure Mr. President. You claim to have no shoes when you were young because of the hardship in Nigeria but from you decision i don’t even think the young Nigeria can go to use talk less of wearing shoes.

    Mr. Jonathan Ebele Bad luck you have done the worst and we the Nigeria will do every thing in our power to stop you even if it mean taking arms we must stop you at all cost.

  6. joseph Reply

    na wa for d president ooo..after all nigerian sacrifies.

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