As part of its New Year gift to Nigerians, the Federal Government on Sunday, January 1, 2012 formally removed fuel subsidy. This move by the federal government may have put to rest agitations over the controversial economic issue.

Making the official pronouncement on Sunday, Petroleum Products Pricing Regulatory Agency (PPPRA) revealed that petrol, Premium Motor Spirit (PMS) will now be sold at N141 per litre.

The PPPRA, in a statement made available to Blank News Online declared that:

”Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004.

”By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published fortnightly and posted on the PPPRA website.

”Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012.

”Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding.

“The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.

”The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.”

“In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.”