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Reps commend PPPRA for N409bn subsidy savings

By on February 7, 2014

The House of Representatives has commended the Petroleum Products Pricing Regulatory Agency for being able to save N409bn subsidy claims in 2012.

The Chairman, House Committee on Petroleum Resources (Downstream oil sector), Mr. Dakuku Peterside, said the agency’s efforts in saving N409bn in subsidy claims in 2012 and the reduction in petroleum products consumption volume from 60.25million litres a day in 2011 to 33.66million litres in 2012 were commendable.

Dakuku, according to a statement from the PPPRA, said this in Abuja when the committee paid an oversight visit to the PPPRA headquarters.

He was quoted as saying, “We can clearly see that the agency has put its efficiency to work to save such enormous amount in one year and this is deeply commendable. Our prayer is that you sustain the tempo. It is good to ensure that Nigeria enjoys maximum gain from the subsidy we pay.”

The chairman urged the agency to do more and stressed that it was the responsibility of the lawmakers to ensure that Nigerians enjoyed value for every kobo paid on subsidy.

Dakuku said, “As we intend to commend you, we say we are not still satisfied; we are not where we ought to be. There is still more work to be done to ensure that we bring subsidy to the best that it is supposed to be.”

In his reaction, the Executive Secretary, PPPRA, Mr. Reginald Stanley, said the agency had achieved up to 67 per cent in the number of participants in the subsidy scheme.

According to him, the agency has ensured that only the owners of downstream facilities participate in the scheme. He added that this had resulted in saving N409bn in subsidy claims in 2012.

He noted that the PPPRA took steps to boost the local content initiative of the government by encouraging indigenous participation in downstream activities, adding that this had attracted investments to Nigeria in excess of N60bn in the past two years.

The PPPRA boss said reforms by the agency in 2012 led to the elimination of petroleum product wastages, scarcity and malpractices in the supply chain.

Stanley said, “There was improved Premium Motor Spirit availability nationwide at a regulated price and there was no experience of supply shortfall related to fuel scarcity in the years 2012 and 2013. This was coupled with over 32-day PMS sufficiency and serving fuel stock.”

 

 

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