The inability to maintain equal price for petrol across the country despite forced removal of subsidy and Nigerians paying billions has put to questioning the continuous relevance of the Petroleum Equalisation Fund.
First established in 1975, the PEF strives to equalise petrol and kerosene prices in Nigeria by paying petroleum product marketers for every litre of fuel, they sell within 100km to 450km of a depot. The fund is effectively a cross-subsidy as marketers who sell within 100km of a depot pay in contributions....for further reading, click on https://businessday.ng/energy/oilandgas/article/should-a-deregulated-downstream-sector-continue-to-have-petroleum-equalisation-fund/
SOURCE: BusinessDay Newspaper Aug 25, 2020.