N380 Per Litre? FG Takes Final Decision as Governors, Oil Marketers Recommend New Price of Petrol

N380 Per Litre? FG Takes Final Decision as Governors, Oil Marketers Recommend New Price of Petrol

  • The federal government has reiterated that the price of petrol will remain between N162 and N165 per litre until negations with the labour union are concluded
  • Petroleum minister (state), Timipre Sylva, stated this after oil marketers expressed support for state governors' recommendations regarding oil price
  • The governors had in May recommended the removal of oil subsidy and the increment of oil price to between N380 and N408.5 per litre

FCT, Abuja - The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has demanded an immediate end to fuel subsidy in line with the state governors’ previous recommendation.

A committee set up by the Nigerian Governors Forum had in May recommended the removal of subsidy and the increment of petrol price up to between N380 and N408.5 per litre.

Petrol Price in Nigeria: FG Takes Final Decision as Governors, Oil Marketers Give New Recommendations
The FG has rejected the recommendation of a committee of the Nigerian Governors Forum to remove fuel subsidy and sell petrol at N380 per litre. Photo credit: Ministry of Petroleum Resources, Nigeria
Source: Facebook

The committee had explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighbouring African countries were the beneficiaries.

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FG rejects NGF committee's recommendations

However, the federal government rejected the governors’ recommendation.

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The minister of state for petroleum resources, Timipre Sylva, in a statement, explained at the time that the current petrol price of between N162 and N165 per litre would stay.

Sylva added the current price would be retained until the ongoing negotiations with the organised labour were concluded.

He also asked oil marketers not to engage in any activity that could jeopardise the “seamless” supply and distribution system of the commodity.

Oil marketers back governors

However, months after the governors' recommendation was rejected, the president of PETROAN, Dr Billy Gillis-Harry, said oil marketers’ position is that fuel subsidy should be stopped.

He said the prices of petroleum products will be determined by market forces and this will create competition and lead to an increase in product availability when fuel subsidy is stopped.

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Gillis-Harry asked the federal government to listen to the governors’ call, especially now that the country was grappling with funding challenges.

Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also on Friday backed the governors' call for the complete removal of fuel subsidy.

The oil marketers stated that the rise in the landing cost of petrol had further highlighted the need to put a stop to petrol subsidy.

FG reiterates stance

Responding to the marketers' demand, the federal government again on Friday, August 13, reiterated its stance, insisting that the current price remains until the ongoing negotiations with the organised labour were concluded.

The Punch reported that Sylva's media aide, Garba-Deen Muhammad, stated that he would re-echo the stance of his boss who had earlier stated the position of the federal government on the matter.

Muhammad said people were free to make analyses and recommendations but stressed that the government’s position on petrol price had not changed.

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Nigerians react

Faluyi Wale Richard commented on Facebook:

"Next level of hardship, citizens are containing herdsmen killings themselves and govt is adding hardship, hike in fuel price, foods, introduction of toll gates, vehicle number plates, licences, shelter etc ......we don't have govt in this nation anymore."

Khamis Musa said:

"Most of these govs couldn't pay minimum wage, promotion and increments, they are wicked."

Basit Oyedele said:

"This is too bad for govs to recommend this kind of things at a time Nigerians are in hardships and everything is not going well. It seems these govs lack compassion.
"Because they have money to purchase the fuel, is that the reason for proposing hiking petrol price."

Joel Oderonke said:

"You have reintroduced toll gate fare, domestic gas has increased fare, price of number plate has also increased, now you are pushing for petrol pump price increase, what kind of rulership administration and ideology oppresses the citizens for no reason, time will tell."

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Subsidy removal: Petrol price could rise to N1,000 per litre

Meanwhile, the Department of Petroleum Resources (DPR) has issued a warning that when the petrol subsidy regime comes to an end, Nigerians may have to spend as much as N1000 per litre for the product if an alternative energy source is not provided.

This was disclosed by the DPR director, Sarki Auwalu, at the Second Quarter, 2021 Business Dinner of Petroleum Club Lagos.

In a statement seen by Legit.ng on the DPR website, Auwalu, who was responding to questions and comments generated by a paper he delivered, said Nigeria was spending so much on petrol subsidy.

Source: Legit

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