Following reports published by some quarters of the media alleging that the federal government has reversed its decision to remove subsidy on Premium Motor Spirit (PMS) also known as petrol, the government, on Monday, debunked the claims, stating that it is not going back on its decision.
A statement issued by the acting Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Sotonye Iyoyo, explained that the government has not gone back to the subsidy regime, especially when there is no appropriation for subsidy in the 2016 budget.
Iyoyo stated that what it has in place is a price modulation mechanism where it quarterly reviews pump price of petrol.
She said, “Contrary to reports by a Section of the Nigerian Media, the Federal Government has not reversed its decision to remove subsidy on Premium Motor Spirit (PMS), moreso when there is no appropriation for subsidy in the 2016 budget.
“The PPPRA wishes to state categorically that what still exists is Price Modulation Policy, through which it considers and reviews pump price of PMS quarterly.
“The Agency also wishes to assure Nigerians that the funds from Over-Recovery in the first quarter (Q1) shall be duly utilized for whatever noticeable imbalance in April 2016 in line with the Price Modulation Principle.
“While appreciating the patience of Nigerians, the PPPRA wishes to reiterate its commitment to ensuring seamless supply and distribution of petroleum products in the Country.”