No going back on price modulation mechanism – PPPRA

Contrary to reports by a section of the Nigerian media, the Federal Government on Monday said it has not reversed its decision to remove subsidy on premium motor spirit (PMS).

This is according to a statement released Monday by the Petroleum Products Pricing and Regulatory Agency (PPPRA) in which it also stated that there is no appropriation for subsidy in the 2016 budget.

“The PPPRA wishes to state categorically that what still exists is price modulation policy through which it considers and reviews pump price of PMS quarterly,” said Sotonye Iyoyo, the acting executive secretary of PPPRA.

According to her, the agency also wishes to assure Nigerians that the funds from over-recovery in the first quarter of the year shall be duly utilized for whatever noticeable imbalance in April 2016 in line with the price modulation principle.

While appreciating the patience of Nigerians, Iyoyo said that the PPPRA wishes to reiterate its commitment to ensuring seamless supply and distribution of petroleum products in the country.