Lagos - The Petroleum Products Pricing Regulatory Agency (PPPRA) said the amount paid on subsidies to marketers bringing fuel to the country has reduced from N2.09 trillion to N1 trillion.
The Executive Secretary of the agency, Reginald Stanley, made the disclosure in an interactive session with the media on Monday in Lagos.
Stanley said that with the current margin, the country has saved N1.09 trillion from the subsidies it paid to marketers in 2011.
``Under our administration, we have been able to reduce the amount paid on subsidies to marketers in 2012 as against N2.09 trillion paid in 2011.
``This has saved the country about N1.09 trillion on subsidies which is a welcome development in the system.’’
The PPPRA boss said that the agency was able to save the country the lump sum due to the reduction in the number of participants in the subsidy scheme.
Stanley disclosed that 128 marketers who participated in the scheme in 2011 have been pruned to 38.
He said that with the reform initiative in place, the industry has also recorded a drastic reduction in supply volume from January to October 2012.
He said that the average daily provision of petrol supply across the country that was 60.259 million litre per day in 2011 has been reduced to 40 million litre per day, which represent about 36.41 per cent decrease.
Stanley also told reporters that it would no longer be business as usual in the nation’s downstream sector under the PPPRA.
According to him, the agency is determined to gird the loin in ensuring that importation of petroleum into Nigeria is done transparently.
He observed that many of the so-called foreign companies operating in Nigerian downstream sub-sector have been blacklisted in their native European countries.
Stanley, however, assured that his agency has concluded plans to publish the names of accredited international companies that would be operating in the downstream sub-sector to ensure transparency.
“The motive for publishing their names is for the regulators, both home and abroad, to know that these companies are operating in the Nigerian oil sector and if there is any caveat with respect to dealing with them.
``Anybody dealing with them would know that they are doing so at their own risks, the accreditation would force them to sign a bond with the PPPRA.”
Stanley said the agency would publish the names of 20 accredited international suppliers of oil into Nigeria by the end of this month.
According to him, the agency will strive to enhance Nigerian content initiative of the government by encouraging indigenous participation through the ownership of the downstream facilities.
He said his administration would also ensure stability in the supply and distribution of petroleum products across the nation by ensuring product availability.
On the nation’s refineries, Stanley said their capacity utilisation was nothing to write home about now and thus the heavy dependence on importation of petroleum product.
``The NNPC has seized to be the sole importer of fuel into Nigeria after January 1, 2006 when the Petroleum Support Fund was introduced by the Federal government.
``Major and independent oil marketers import more products than NNPC currently.’’
The chief executive also spoke on the Petroleum Industry Bill before the National Assembly and said the roles of regulator or regulatory institutions in the oil and gas sector should be held sacrosanct.
Stanley said that the agency looked forward to take up additional responsibilities, courtesy of the Petroleum Industry Bill now awaiting legislative passage.