Oyedele Clarifies, Says ๐๐๐๐ D๐ข๐ฌ๐๐จ๐ฎ๐ง๐ญ, Commercial Decision, N๐จ๐ญ S๐ฎ๐๐ฌ๐ข๐๐ฒ
*Says no public fund committed to initiative *CSJ prescribes 50% annual cut of PMS subsidy Ndubuisi Francis in Abuja The Minister of Finance and Coordinating Minister of the Economy, Mr.
Nigerian Minister of Finance, Taiwo Oyedele, has clarified that the discount on petroleum motor spirit (PMS) is merely a commercial decision by the Nigerian National Petroleum Company Limited (NNPCL) to waive its retail profit margin, not a subsidy. The move, effective since October 1, 2023, sees consumers paying less for petrol at NNPC Retail Limited stations.
Oyedele emphasized that this discount does not equate to a return of fuel subsidy, which was ended in 2023. The cost of the discount is borne by the retailer, while a subsidy involves government financing part of the product's cost with public funds. NNPCL continues to purchase petrol at market prices, applying its retail margin to determine the pump price.
Oyedele also addressed concerns about the initiative's impact on NNPCL's profits and dividend payments, stating that reduced earnings per litre could be offset by increased sales volumes.
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