Group Managing Director of the NNPC, Emmanuel Ibe Kachikwu has announced that the Nigerian Government has scrapped the Petroleum Support Fund, (fuel subsidy).
According to Premium Times, Mr. Kachikwu, who is also Minister for Petroleum resources, said FG could no longer afford the payment due to the dip in its revenue, caused by the drop in crude oil prices.
He said a new pricing template he signed off on Thursday effectively removed the payment of subsidy on petrol and that oil marketers would be informed of the development in the coming days.
“It (new pricing regime) is out,” the minister said. ”I signed off on it yesterday (Thursday). I imagined that in the next couple of days the marketers would get advice on that. The nice thing about the PPPRA, where I signed up on it yesterday is that the price will be far below N87,” he said.