Removal of subsidy on residual fuel is meaningless – Minority

The removal of subsidy on residual fuel by the National Petroleum Authority (NPA) is meaningless, Yapei Kusawgu Member of Parliament John Jinapor has said.

In his view, this does not affect petroleum prices in any way.

The NPA announced to the general public, particularly stakeholders in the oil marketing sector, that the subsidy on residual fuel oil (RFO) has been suspended.

“The suspension of the policy to subsidise RFO 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),” a statement issued by the Chief Executive of the Authority, Dr Mustapha Abdul-Hamid, said.

The decision took effect from Tuesday, November 1.

“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.”

But addressing a press conference in Parliament on Wednesday November 2, Mr Jinapor said “It is meaningless, the suspension of the application of the subsidy on residual fuel does not affect petroleum prices in any way.

“If you want to reduce petroleum prices it is the price stabilization. If you say that you want to apply it to a certain category but another category, it doesn’t affect petroleum prices at all.”

Source3news.com