NPA eliminates the residual fuel oil subsidy.

The subsidy on residual fuel oil (RFO) has been terminated, the National Petroleum Authority (NPA) has informed to the general public, particularly stakeholders in the oil marketing sector.

According to a statement made by the Authority’s Chief Executive, Dr. Mustapha Abdul-Hamid, “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 Stabilization and Recovery Account (PSRA)”.

Beginning on Tuesday, November 1, the decision came into force.

The policy directive “considers the growing uncertainty over the Account’s capacity to sustain under-recovery payment commitments for Premix Fuel and RFO.”