Sequel to engagements with stakeholders, President Muhammadu Buhari has agreed to an extension of the statutory period for the implementation of the removal of subsidy on Premium Motor Spirit (PMS), in line with existing laws.
The new Petroleum Industry Act (PIA) provides for the unrestricted market pricing for PMS from the effective date.
However, the PIA also envisaged the potential for supply disruption with its resultant effect on the economy.
Consequently, it provides for a window of six months from the effective date for Government to request the services of NNPC Limited as supplier of last resort.
This is to forestall supply disruptions and guide market readiness preparatory to migration to the deregulated pricing regime.
With assent by the President on August 16, 2021, the PMS subsidy removal was therefore expected to take place effective February 16, 2022.
However, following extensive consultations with all key stakeholders within and outside the government, it has been agreed that the implementation period for the removal of the subsidy should be extended.
This extension will give all the stakeholders time to ensure that the implementation is carried out in a manner that ensures all necessary modalities are in place to cushion the effect of the PMS subsidy removal, in line with prevailing economic realities.
The President assures that his administration will continue to put in place all necessary measures to protect the livelihoods of all Nigerians, especially the most vulnerable, Minister of State for Petroleum Resources, Timipre Sylva, said in a statement on Tuesday.