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The Federal Government has spent about N2.070 trillion on Petroleum Support Fund (PSF) subsidy in the last four years.

Abiodun
Ibikunle, executive secretary, Petroleum Products Pricing Regulatory
Agency (PPPRA), said this yesterday in Abuja, adding that the amount
covers between January 2006 and November 2010.

This
figure excludes N98.05 billion by the Federal Government on foreign
exchange differential payment as well as interest on delayed subsidy
payment to petroleum products marketers during the period.

Mr.
Ibikunle, while reviewing the downstream petroleum industry activities
for the fourth quarter, gave the assurance that the agency has made
adequate arrangements to ensure uninterrupted supply of petroleum
products during the festive period.

“A
market review by the agency by the middle of the quarter revealed that
some marketers were not responding to the need to bring in petroleum
products on time. Therefore, additional allocations were given to those
marketers that were active and had the capacity, in terms of resources
and storage facilities, to import, store, and ensure effective
distribution to consumers.

“With the arrangement, we do not expect there will be any shortage in supply throughout this period,” he said.

He
attributed the uninterrupted supply of petroleum products in the country
recently to the success of the PSF scheme, which was established in
2006 to help mitigate the negative impact of the volatility in the
international crude oil and products and stabilise the retail pump price
to consumers.

Prior
to the introduction of the PSF, the PPPRA secretary said the country
witnessed rapid increases in the prices of petroleum products, pointing
out that since the scheme was established, government has been able to
maintain stable fuel price regime at N65 per litre for the past two
years.

Though
the agency has been facing some challenges in the management of the
scheme, he expressed happiness that they have been taken care of,
particularly clearing the huge backlog of debt government owed petroleum
marketers for imported products.

“The
backlog of debts by government to marketers has now been cleared. The
huge debt was a major challenge to products supply, as most of the
marketers abandoned the PSF scheme and refused to bring in products
since they were not sure their money would be paid on time. To that
extent, the PSF scheme has succeeded in meeting government’s
objectives,” he said.

He said with the introduction of the sovereign debt instrument,
marketers have been assured the guarantee of prompt payment of subsidy
claims, adding that consultations are ongoing with all relevant bodies
on the issue of review of products pricing template, as demanded
recently by major marketers and Petroleum Tanker Owners Association
during a meeting in Abuja.