• Friday, July 19, 2024
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FG pays N103bn subsidy to keep Nigerian petrol prices uniform in 9 months

Fuel subsidy removal: Nigeria’s painful path to economic revival

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says the government has paid marketers N103 billion to keep petrol prices uniform across Nigeria between December 2021 and August 2022, even as marketers threaten strike action.

The regulator held a meeting with the Northern Independent Petroleum Marketers Forum (NIPMF) on the 5th and 6th of September 2022, to ensure an uninterrupted supply of Premium Motor Spirit (PMS), also called petrol with the participation of the NNPC Ltd, the statement said.

NIPMF threatened to go on strike for three days, withdrawing their services across nine depots in 19 northern states citing unpaid claims. The payment to keep prices uniform across Nigeria is called Bridging claims.

“The regulators would like to reiterate that payment of bridging claims is an ongoing process and payments are disbursed as it is received from Marketers, the government agency said in a statement.

Read also: Fuel subsidy presents Nigeria tough choice of burning N6trillion in 2023

The statement said, “It should be noted that the Authority has disbursed a total of N103, 037, 183, 922.91 between December 2021 and August 2022.”

Following the extensive deliberations between the parties, the Authority further commits to fast-track the settlement of all outstanding claims when received from marketers after due verification and reconciliation, the statement said.

Furthermore, NIPMF has agreed to work with the regulator to ensure the free flow of petroleum products nationwide.

The regulator affirms that it will continue to carry out its mandate as stipulated in the Petroleum Industry Act (PIA) which includes promoting and ensuring the continuous and efficient operations of the Midstream and Downstream sectors in Nigeria.