The National Petroleum Authority (NPA) has 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.”
Source: 3News.com