- If the words of Timipre Sylva are anything to go by, petrol would soon be sold for N181 per litre in Nigeria
- The minister of state for petroleum on Tuesday, September 15 gave a hint about the increase at the Presidential Villa, in Abuja
- Sylva was speaking at the bipartite meeting between the federal government and the organised labour
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The federal government has stated that petrol should be sold for N181 per litre if all costs implications are considered and factored in rather than the present pump price of N161.
This was disclosed by the minister of state for petroleum, Timipre Silva on Tuesday, September 15 at the bipartite meeting between the federal government and the organised labour, held at the Banquet Hall of the Presidential Villa, in Abuja.
Sylva, a former governor of oil-producing Bayelsa state, pointed out that Nigeria lost a total N10.413 trillion to subsidy between 2006 and 2019, while between the year 2016 and 2019, he said the federal government lost a total sum of N2.193 trillion on subsidy.
He pointed out that if the sector was fully deregulated and the dollar exchange rate was fully factored in, the fuel price would not be N161 but N183 per litre.
He further said with the present price increase, the price of fuel in Nigeria at N161 per litre is still the cheapest in the sub-region, comparing with Senegal N549 equivalent, Cameroon N449, Benin N359, Ghana N332 and other neighbouring countries.
“If you are taking the dollars at the market parity price, and say let us calculate the dollar at N450 per dollar, it would have been N183 per barrel.
“So today, we can say yes we have deregulated, but we can also tell you here now, we have not fully deregulated because of the concerns that the government have for Nigerians,” Sylva told the labour leaders.
Legit.ng had earlier quoted Sylva as saying funds from the subsidy would be deployed to fund other critical components of the economy.
“It is time for Nigerians to face reality and do the right thing. What is deregulation going to do? It is going to free up a lot more money. At least from the very beginning, it will save us up to a trillion and more every year,” he told some journalists on Thursday, September 10.
Recall that the minister of information and culture, Alhaji Lai Mohammed, at a press briefing in Abuja on Monday, September 7 said the angry reactions that have greeted the latest prices of petrol are “unnecessary and totally mischievous.”
His words: “The truth of the matter is that subsidizing fuel is no longer feasible, especially under the prevailing economic conditions in the country.”
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