Full text of press release from the PPPRA
PPPRA Announces Formal Removal of Subsidy on Premium Motor Spirit (PMS)
Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004.

By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly and posted on the PPPRA website.

Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012.

Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding.
The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.

The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.

In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.

Signed:

Reginald Stanley
Executive Secretary, PPPRA.

Great News!

Sanusi rules!

Yeah mon!

Nicely done.

Fresh air indeed. The bastard's the worst thing ever to happen to our beloved country

Now fuel at the higest rate, filling stations will add egunje making it too expensive

the abuse should be prevented.

Govt. should make sure it get rid of the illegal refineries which litter the Niger-Delta so that the hoarding and irregular pricing system don't automatically enter into the plan. Those who own the illegal refineries might sell their gasoline at a price lower than the pump price by the govt. if not abolished, thereby leading to hoarding of fuel to neighboring countries and also prevent dealers from purchasing from the national  producers.

There have to be security checks, building of large volume handling refineries(by govt and private individuals or corporations), use of paraffin should be prohibited and coerce citizens to use bottled gas - to reduce dependence on paraffin.

This will indirectly affect the power supply of the country from a general point of views. For this to be meaningful there has to be constant supply of electricity so that the fuel consumption by generator users will be reduced to the barest minimum. Then, things will start to fall into place and the economy will continue to expand exponentially affecting the poor in a positive ways.

I think the govt. need to be serious in the security check of the supply and sale of this commodity.

Splendid Jonathan and your team of fresh air bringers, Amongst all the issues at war with our dear country, removal of fuel subsidy is the best your lot can provide for Nigerians, Naija na true breath of fresh air be this, SMH

I will understand this grammar better when I go to catch a bus next week and the price inflates

Nice move! Supported!

Fresh Air

Wrong move, neither the people or the system are prepared for the shock that'll definitely follow. There's absolutely no system in place to check the excesses of marketers and transporters to prevent profiteering, the negative domino effect of such - granted short term - profiteering would lead to a spiral in costs in all facets of our lives with the authorities only rescue package a lame hope everything gets settled in the long run. But would the country and its people survive the certain upheaval set to follow in the short run? Only time will tell. No way I agree with this move, It's totally brazen and unjustifiable.

What is dis about announcing benchmark prices again,meaning no marketer can sell below their socialist benchmark.If they are deregulating,it means I can source& sell at any price I feel appropriate.Nobody fixed any benchmark for telecommunications companies nah,now they alredy started interfering in prices.I dnt need their benchmark anytin,they either kp subsidy or take their fu ck ing,corrupted,leprous hands entirely off fuel pricing!

Long overdue.

Great news!
Audacious move!
Spendid one Gej!
I wonder why we want to continue running Nigeria with dis same method
of subsidy for many years , yet expecting diff result!

Even though I am somewhat on the fence on this issue, I am leaning towards the removal of the fuel subsidy. While it appears on its face that ordinary Nigerians would suffer because of this move, I think the country would benefit from the subsidy on the long run (assuming the money saved would be used to develop our decayed infrastructure).

Ouch!
Now those pot cookers (illegal bunkerers) in Rivers State will swing into full business.

Welcome to cheap petrol, adulterated fuel and damaged motor engines.

The govt. Has done what they want but they should prepare to cushion the effect of pms.

So it is subsidy removal that will solve nigeria problems abi, its only an insincere govt that wull annonce a new policy wit immediate effect witout letting the masses know. If SLS comes on air to announce a cashless economy wit immediate effect, we will shout dictator. No wahala. ALL IS WELL

Autogas to the rescue, do you know your cooking gas can power your car and serve as a Generator fuel. Let me know if you are interested. Mail info@genergo.com

Every newly introduced govt. policy comes with some initial inconviniencies but later stabilizes. We'll enjoy later, let's bear it 4 now.

Does this not require NASS approval or has it been approved already?

Removal of fuel subsidy is a tax increment on all Nigerians and should require NASS approval.

People keep talking about money saved as if the payments for gasoline were not being made by someone already.

There are no real savings here, but merely a transfer of funds from the populace to government. The only potential true savings are from eliminating marketers that deliver "fanthom" fuels, but receive subsidies. Without data, it is hard to estimate how much of the subsidy is wasted this way, but it is unlikely to be large.

There are three types of real potential losses to the Nigerian economy:
1. With a more than doubling of the fuel price Nigerians will have to reduce their consumption of fuels and the associated economic activities. The multiplier effects will be even higher than the direct reduction.

2. If the reduction in consumption in Nigeria and other countries that are raising prices is significant enough this can reduce oil prices by a couple of dollars or more if other nations do not buy up the excess supply left on the market by these price increases. A loss for Nigeria's economy, which depends on oil exports.

3. The biggest loss will come from the fact that our officials will be jacking up their outlandish consumption over the next couple of years, while contributing zip to the economy. Your promised refineries, roads and bridges will take another 20 years to put together by which time the "saved" funds would be long spent.

There are a number of options to prevent these losses, but I dont see anything coming out of GEJ's Aso Rock.

Princek12:

Even though I am somewhat on the fence on this issue, I am leaning towards in support of the removal of the fuel subsidy. While it appears on its face that ordinary Nigerians would suffer because of this move, I think the country would benefit from the subsidy on the long run (assuming the money saved would be used to develop our decayed infrastructure).

Good step by the nation

Is this not the beginning of the end ? BH are killing us openly,Govt has started killing us slowly and silently .

Gbam. now,something has started

This subsidy removal will finally bring down the PDP Government.

The reason we have this subsidy in the first place is because we export crude but import petrol instead of refining petrol locally. The last time I checked we are not at full local refining capacity yet. This subsidy was introduced as a buffer so that Nigerians do not face the full weight of international market forces when buying petrol which because of our inefficiency is now an imported product.

Some talk about how much we will save but they forget that this saving will not translate into anything positive for the average Nigerian because this will simply mean more money available for politicians to embezzle and yet ordinary Nigerians will begin to feel the full weight of price of crude in international market.

What this means is that if for example Iran makes good on its promise to cut off pipelines running through its backyard because of international sanctions, cost of crude go up and hence cost of petrol go up. The man from oloibiri will be paying more for a litre of gassoline eventhough there is an oil well in his backyard!

Those who want to get Jonathan out of office really dont need to blow anybody up. This administration has just committed sucide. Honestly this policy will bring the PDP Government down if we had a sensible opposition willing to play politics as politics should be played!!!

Koruji what about the impact this will have on inflation and goods pricing. You forget that everything depends on the cost of petrol in terms of transportation/energy cost?

This is a very dumb move!!! this Government will bear the brunt!!!

koruji:

People keep talking about money saved as if the payments for gasoline were not being made by someone already.

There are no real savings here, but merely a transfer of funds from the populace to government. The only potential true savings are from eliminating marketers that deliver "fanthom" fuels, but receive subsidies. Without data, it is hard to estimate how much of the subsidy is wasted this way, but it is unlikely to be large.

There are three types of real potential losses to the Nigerian economy:
1. With a more than doubling of the fuel price Nigerians will have to reduce their consumption of fuels and the associated economic activities. The multiplier effects will be even higher than the direct reduction.

2. If the reduction in consumption in Nigeria and other countries that are raising prices is significant enough this can reduce oil prices by a couple of dollars or more if other nations do not buy up the excess supply left on the market by these price increases. A loss for Nigeria's economy, which depends on oil exports.

3. The biggest loss will come from the fact that our officials will be jacking up their outlandish consumption over the next couple of years, while contributing zip to the economy. Your promised refineries, roads and bridges will take another 20 years to put together by which time the "saved" funds would be long spent.

There are a number of options to prevent these losses, but I dont see anything coming out of GEJ's Aso Rock.

Mixed feelings. . . I hope multiplier effects is contained and the eventual state of flux is balanced. . .

I don't understand why they didn't just phase the subsidy out slowly over time.

Less politically costly to just drop the amount spend by 20%/year for the next 5 years.

unrattled:

Ouch!
Now those pot cookers (illegal bunkerers) in Rivers State will swing into full business.

Welcome to cheap petrol, adulterated fuel and damaged motor engines.

Good move from GEJ,