Petroleum
Products Pricing Regulatory Agency (PPPRA) has revealed that petrol may
cost less in April, with the President Buhari led government federal government
already making billions in few weeks, owing to the new price modulation
process.
NNPC mega filling station selling petrol
Speaking during his handover in Abuja on Thursday, the immediate
past executive secretary, Petroleum Products Pricing Regulatory Agency
(PPPRA), Farouk Ahmed, says petrol may cost less in April, with the
President Buhari-led federal government already making N13.81 on petrol
as at Tuesday.
According to Farouk, the federal government has been able to save
N2.6 billion in six weeks, owing to the new price modulation process,
adding that the government has moved from the regime of under-recovery
where Nigerians are paying less for the product, to over-recovery where
Nigerians are paying too much for the product.
He said the price of the product should be cheaper by the second quarter of 2016. "As at the February 12, 2016, because we verify based on what was imported, about N2.6 billion has accrued to that account," he said.
Speaking of an account opened for subsidy modulation savings, he said, "The
fund is still low because most of the cargoes arrived in December last
year. The PPPRA has already communicated to the appropriate authorities
that we are in the regime of over-recovery.
"Indeed as at Tuesday close of market, the subsidy on petrol
was N13.81Kobo over-recovery. The PPPRA would now send a debit note to
every marketer that falls within that bracket to refund the money to
government."
Farouk, who was relieved of his duties on Monday, in a mass sack
action, said he held for the whereabouts of the money made from
over-recovery, adding that it is safe in an account with the CBN and
managed by the accountant-general of the federation.
"There is already an account with the Central Bank of Nigeria
(CBN), which is managed by the Accountant-General of the Federation
where all over-recovered funds are deposited. So, there is no question
about where does the money from over-recovery goes into."
He however added that the money made by the federal government in
over-recovery, would be saved for rainy days to subsidise petrol, when
the prices spike again. Ahmed handed over to Moses Mbaba, the general
manager, administration and human resources.
