The National Petroleum Authority (NPA) has suspended the subsidy on residual fuel oil (RFO).

The suspension took effect from November 1, 2022.

In a statement signed by its Chief Executive Officer, Dr Mustapha Abdul-Hamid, it said 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 Stabilisation and Recovery Account (PSRA).

“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 Stabilisation and Recovery Account (PSRA)”.

“The policy directive takes into consideration the growing concern about the sustainability of the Account to meet under-recovery payment obligations for Premix Fuel and RFO”, it added.

For now, it’s unclear how much will the suspension of the subsidy on residual fuel oil (RFO) will impact on the petroleum price build up.