The government has suspended the subsidy on Residual Fuel Oil (RFO) until further notice, effective November 1, 2022.
According to the National Petroleum Authority (NPA), the move is in line with the directive from the Ministry of Energy as an interim measure to ease the financial burden on the Price Stabilisation and Recovery Account (PSRA).
“The Policy directive takes into consideration the growing concern about the sustainability of the Account to meet under-recovery payment obligations for Premix Fuel and RFO,” NPA said in a letter Informing the Industry of the suspension of the policy.
“NPA will therefore continue to compute and announce the price build-up (PBU) of RFO for each pricing window, as it has always done, to the industry,” the letter signed by the Chief Executive of the NPA, Dr Mustapha Abdul-Hamid stated.
Read the full statement below