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The Chief Executive Officer of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid says from November 1, 2022, subsidy on residual fuel oil (RFO) will be suspended.
In a statement signed by Dr.
Abdul -Hamid, it said the suspension of the policy to subsidise RFO is in line
with the directive from the Ministry of Energy as an interim measure to ease
the financial burden on the Price Stabilisation and Recovery Account (PSRA).
“The suspension of the policy to
subsidise RFO is in line with the directive from the Ministry of Energy as an
interim measure to ease the financial burden on the Price Stabilisation and
Recovery Account (PSRA)”.
“The policy directive takes into
consideration the growing concern about the sustainability of the Account to
meet under-recovery payment obligations for Premix Fuel and RFO”, it added.
However, it’s unclear how much
the suspension of the subsidy on residual fuel oil (RFO) will impact on the
petroleum price build up.
Tagged Dr. Mustapha Abdul-Hamid, NPA, Subsidy on Residual Fuel Oil
