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Fuel Price Hike Looms As Senate Removes Subsidy Clause From PIGB

Fuel Price Hike Looms As Senate Removes Subsidy Clause From PIGB

The possibility of an increase in the prices of petroleum products particularly Premium Motor Spirit (PMS) known as petrol is now very high as the Senate on Tuesday expunged Petroleum Equalisation Fund (PEF) clause from the Petroleum Industry Governance Bill (PIGB).
PEF is a measure introduced over 35 years ago to ensure that prices of petroleum products are equalized across the country by reimbursing petroleum marketers for cost incurred while transporting petroleum products from depots to filling stations.
If Buhari approves deleting of the PEF clause in the PIGB legislation, Nigerians living far from petroleum depots, mountainous and riverine communities will pay more for petroleum products.
Buhari once declined assent to a version of the PIGB stating that “expanding the scope of the Petroleum Equalisation Fund made some provisions of the draft law to be in divergence from his administrative policy and indeed conflicted with provisions of the fund.”
Currently, the equalisation levy on PMS inclusive of bridging, National Transportation Allowance (NTA) and Marine Transport Average (MTA) was 7.66 per cent.
But a five per cent fuel levy could be introduced for infrastructure financing.
It is feared that the absence of taxes on some white products such as AGO, DPK and LPG might enthrone a regime of unchecked exploitation by producers and operators.

About Demola Abimboye