Date Published: 08/22/09
THE PRESIDENCY
PETROLEUM PRODUCTS PRICING REGULATORY AGENCY
No. 1/3, Sankuru Close, off Rima/Gurara Streets, Maitama, P.M.B. 609, Garki, Abuja.
Tel: 234-9-4138613, 4138614. Fax: 4138654. E-mail: es@pppra-nigeria.org
PRESS STATEMENT
Following series of paid advertisement in some Nigerian newspapers by a group of Marketers, mainly Major Marketers (MOMAN), Independent Marketers (IPMAN), Depot Owners (DAPMAN) and Independent Petroleum Importers (IPPI), the Petroleum Products Pricing Regulatory Agency (PPPRA), wishes to put the record straight on Government’s outstanding commitment to private petroleum marketers as subsidy claims under the Petroleum Support Fund (PSF) for 2009.
2. According to the PPPRA records as at May 2009, the total subsidy claims made to the Agency by Marketers stood at about 46 Billion Naira. Out of this amount, Marketers have already been reimbursed the sum of 14 Billion Naira, upon completion of the audit process and subsequent approval by the Government.
3. Also, claims of about 10 Billion Naira has been audited in line with due process, and after obtaining the necessary approvals this amount will also be paid to the Marketers. However, the other outstanding subsidy claims are being processed for payment.
4. The PPPRA notes that the sum of 70 Billion naira as claimed by the Marketers in their publications is not factual. This figure was alleged to include additional cost incurred as a result of bank interests, foreign exchange differentials and other charges, occasioned by delays in reimbursement by Government. This is obviously far in excess of about 46 Billion Naira claims received by the PPPRA from the Marketers so far in 2009, and for which a part has been paid as earlier stated above.
5. It would be recalled that following the slump in the international oil prices and the depreciation of the Naira in the last quarter of 2008, Government, after extensive consultations with stakeholders, agreed to mitigate the sudden losses incurred by the Marketers, by reimbursing them with the sum of 17.3 Billion Naira in May, 2009 as foreign exchange differentials on 4 th Quarter subsidy claims for 2008. It must however be made clear that this gesture by Government was a genuine response to a compelling situation, and should not be construed as a contractual obligation.
6. However, the PPPRA Pricing Template, which was arrived at by all stakeholders including the Marketers, remains the basis for all the transactions. It should be noted that the template was never static as it is regularly reviewed from time to time to reflect the dynamics of the market.
7. Government is alive to its obligations and responsibilities regarding the issue of petroleum subsidy as contained in the PSF guidelines. The PPPRA, therefore, wishes to further assure Marketers that Government remains committed to the payment of all genuine outstanding subsidy claims, but in effecting such payments, it will ensure that due diligence is carried out and the due process is followed.
Abiodun Ibikunle
Executive Secretary, PPPRA
20 th August, 2009
