The Ministry of Finance, through the Ministry of Energy, has instructed the National Petroleum Authority (NPA) to remove the Price Stabilisation and Recovery Levy (PSRL) from the Price Build-Up.
This move is in line with section 2 (b) of the Energy Sector Levies Act 2015 (Act 899) as amended in 2021, Act 1064, and will last for a three-month period.
The NPA has responded to this directive by announcing the removal of the PSRL from the Price Build-Up, effective April 1st until June 30th, 2024. All Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) must adhere to the revised PSRL rates during this period.
Prior to the removal, the PSRL rates were set at 16.00 GHp/Lt for petrol, 14.00 GHp/Lt for diesel, and 14.00 GHp/Kg for LPG, effective March 16th, 2024. However, these levies will be reduced to nil for all fuel products as of April 1st, 2024.
The government’s intervention aims to shield consumers from the burden of high fuel costs resulting from escalating global prices. By temporarily removing the PSRL, the government seeks to alleviate the financial strain on consumers at the pumps.
All OMCs and LPGMCs are urged to implement these revised PSRL rates in their Price Build-Up from April 1st to June 30th, 2024, ensuring transparency and compliance with the government’s directive.
Consumers are advised to take note of these changes and adjust their expectations accordingly. The government is taking steps to mitigate the impact of global market fluctuations on fuel prices, and this is one of them.
Source: thebftonline.com
