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.
“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.
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