The National Petroleum Authority (NPA) has announced the suspension of the subsidy on Residual Fuel Oil (RFO) effective November 01, 2022.
The suspension is in line with the directive from the Ministry of Energy as an interim measure to the financial burden on the Price Stabilisation and Recovery Account (PSRA).
[adrotate group=”2″]“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,” a statement issued and signed by the Chief Executive of the NPA, Mustapha Abdul-Hamid said.
The statement further asked stakeholders in the petroleum downstream sector to take note of the directive and be guided accordingly.
“You are hereby informed that the NPA will continue to compute and announce the price build-up (PBC) of RFO for each pricing window as it has always done, to industry,” the statement concluded.