The Federal Government has said it will not increase fuel prices until after June 2008, in spite of high crude oil prices.
�The Federal Government has given its word that there will be no more price increases between June 2007 and June 2008. Government will make up for whatever differences that exist in the international market from the PSF,� the Executive Secretary of the Petroleum Products Pricing Regulatory Agency, Dr. Oluwole Oluleye, said by telephone on Wednesday, in response to our correspondent�s enquiries.
Crude oil prices rose to all-time record of $98.58 a barrel for December delivery, in early hours trading at the New York Merchantile Exchange on Wednesday.
Brent crude oil for December, similar to Nigeria�s Bonny Light, settled at a record $95.19 a barrel on the London-based ICE Futures Europe Exchange.
The PPPRA scribe said the government would continue to absorb the price shocks at the international market, notwithstanding the fact that Nigeria, seventh world exporter of crude, imports almost 100 per cent of its fuel needs.
He said the government would depend on the Petroleum Support Fund to fund the subsidy until mid-2008.
Our correspondent earlier gathered that some oil marketing chief executives were mounting pressure on the PPPRA to recommend an increase in pump prices.
Oluleye, however, denied it, saying, �No one has mounted pressure on us so far.�
Crude prices have averaged at over $70/bbl for the greater part of 2007.
It is being predicted that prices would even exceed above $125/bbl before the year ends, on account of the continued crises in Nigeria�s Niger Delta, and other oil producing regions in the Middle East.
Prices of petrol had risen to almost $3 per litre in United States, over �1 in the United Kingdom, while China and other countries have also increased pump prices, in tune with the current record high prices.
There have been fears that Nigeria will follow suit.
The administration of former President Olusegun Obasanjo increased prices a record 12 times in the eight years of his administration, in response to previous shocks.
Oluwole disclosed that PPPRA had paid over N100bn by marketers after auditing returns submitted by them for the year.
He stated that in view of recent price volatility, the agency would request for additional funding.
Lack of reimbursement to marketers had led to products scarcity early in the year, as marketers abandoned products importation to the Nigerian National Petroleum Corporation.
The management of the NNPC had to call the marketers to a round table, when it could no longer bear the burden of importation alone.
With firm promises by the PPPRA, to hasten the process of imports auditing, the marketers resumed importation.
The Federal Government commenced the execution of a N150bn PSF in April 2006, to cushion the effects of price volatility on consumers.
Nov82007