FG plans subsidy for gas

The federal government is considering extending the current equalisation scheme in the petrol supply system to the movement of gas nationwide.

The Executive Secretary, Petroleum Equalisation Fund (PEF) Management Board, Ahmed Bobboi, said this on Sunday in Abuja at an interactive session with newsmen.

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He noted that when the policy becomes functional, it will help tackle inflation associated with increases in gas price.

PEF also said it is making moves to equalise the price of Liquefied Petroleum Gas (LPG) or cooking gas, to ensure it is affordable.

He also said that the policy was also awaiting the passage of the Petroleum Industry Bill (PIB) which will clearly spell out the new functions of the PEF, stressing that whatever role is assigned the petrol equalisation board will determine the next line of action on the proposed scheme.

“If it’s working well for petrol and the government wants to promote the use of gas, if we can take the practice to gas, we believe that it will add value to the economy in so many ways in the value chain,” Bobboi said.

“We are also looking at the possibility of petroleum marketers transporting their products by rail because the government is providing rail lines across the country. It will save cost and reduce pressure on the roads because most state governments are complaining that heavy duty vehicles have destroyed the roads and I think it will reduce the cost of road maintenance for the government.”