Marketers To Refund N13.81/Litre Over-Priced Balance To FG

The federal government has said it would send a debit note to every marketer to refund over-recovered money to government, as petrol is now over priced by N13.81 per litre at the current N86.50 a litre approved pump price for oil marketers. 
This was disclosed yesterday by the out-going Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Farouk Ahmed, while handing over to the General Manager, Administration and Human Resources, Moses Mbaba, who is the most senior officer in the agency.
While hinting that Nigerians could pay less for petrol in the second quarter going by the current trend, Ahmed stated that price modulation regime has instilled efficiency in the system.
“There are the possibilities of Nigerians paying less for petrol in the second quarter of the year. The Minister of State will look at all the facts pragmatically and arrive at a just figure for petrol,” Ahmed said, adding that the reforms which were introduced when he assumed office have succeeded in eliminating all the frauds that were associated with subsidy regime especially since 2011.
Ahmed explained that so far, N8 has emerged the average figure of over recovery for the year, saying, “indeed as at Tuesday close of market, over recovery was N13.81. The PPPRA would now send a debit note to every marketer that falls within that bracket to refund the money to government.
“There is already an account with the Central Bank of Nigeria (CBN), which is managed by the Accountant General of the Federation (AGF) where all over-recovery funds are deposited. So, there is no question about where does the money from over-recovery money go into.”
Ahmed also disclosed that a total sum of N2.6 billion has accrued into a special account in the CBN from the operation of the price modulation regime by the Federal Government.
While explaining that the delay in handing over was informed by the need to compile a comprehensive handover note for his successor in office in view of the price modulation regime that is still at infancy stage, he said: “As at the 12th February, 2016, because we verify base on what was imported, about N2.6 billion has accrued to that account. 
“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. So far, N8 has emerged the average figure for the year.”  
Ahmed further explained that all the money that goes into the over-recovery account will also be used to pay for the subsidy when the price of crude oil soar in the international market, and added that the PPPRA would on the 15th of March begin to collate data on the trends in the industry between January and March to determine the components of the template for the second quarter.    
Ahmed stated that a committee that was initially planned to take charge of the template had to be jettisoned, because the Minister of State for Petroleum, Dr. Ibe Kachikwu, advised that rather than having a committee, it was better to bring every stakeholders together in a roundtable discussion to look at the trend, do a forecast and then take a decision on the prevailing facts.
However, Ahmed who admitted that members of the organised labour was not part of the final negotiation on the price modulation before its adoption said, “Labour were not part of the final decision because we believed the issues at stake are more of technical. The modulation regime is not an end but an on-going practice. When there is not a board, the Minister of State is empowered to provide leadership on some of the issues,” he said.

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