The management of the Petroleum Equalisation Fund (PEF) has announced plans to subsidize the transportation and distribution costs of Liquefied Petroleum Gas otherwise known as cooking gas.
The bridging scheme for gas is to ensure its affordability and accessibility across the country, as well as the addition of value to the economy in many ways.
This disclosure was made by the Executive Secretary of PEF, Ahmed Bobboi, on Sunday, May 9, 2021, while speaking at a press briefing in Abuja.
Bobboi also urged oil marketers to start moving Premium Motor Spirit, otherwise known as petrol, through the expanding rail network across the country.
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Comments from the Executive Secretary of Petroleum Equalization Fund
Bobboi, in his statement, said, “We are looking at the possibility of getting marketers to transport their products by rail because the government is reviving many of the critical rail lines.”
On moves by the agency to equalize gas price, Bobboi said the management board of Petroleum Equalisation Fund was considering the plan because of the huge success recorded in the over 45 years of petrol price equalization.
He said, “We are trying to introduce the bridging scheme to gas because the government has declared this year till 2030 as a decade of gas.
“And we say if this (petrol price equalization) is working for the economy for over 45 years now effectively if we can extend the practice to gas we believe that it will add value to the economy in so many ways in the value chain.”
The PEF boss said that consumers would also get some incentives as the gas marketer would bring down his price and the product would be affordable and accessible to the consumer.
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What you should know about the PEF
The Petroleum Equalization Fund is an agency of the Federal Government under the Federal Ministry of Petroleum Resources whose mandate is to ensure uniform prices for petroleum products across the country.
The fund also ensures the reimbursement of petroleum companies on any loss in Nigeria arising from the distribution of petroleum products nationwide.