Finally, FG Speaks on Subsidy Removal, Way Forward for Nigeria's Oil Industry

Finally, FG Speaks on Subsidy Removal, Way Forward for Nigeria's Oil Industry

  • Contrary to several reports, the Nigerian government has warned that it is still subsidising fuel in the country
  • The minister of petroleum resources, Timipre Sylva noted that the Federal Government is yet to deregulate petrol
  • According to the minister, the increase in fuel pump price by petroleum marketers was not approved by the government

The Federal Government on Monday, August 1, debunked the claim that it has removed subsidy on the Premium Motor Spirit (PMS), also known as petrol.

Speaking at the sidelines of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stakeholders’ consultation forum on regulations, the minister of petroleum resources, Timipre Sylva said this in reaction to the increase in the fuel pump price by marketers.

Timipre Sylva, minister of petroleum resources, fuel scarcity, NNPC, oil marketers
The Federal Government has denied reports that fuel subsidy has been removed. Photo: Timipre Sylva
Source: Twitter

The marketers across Nigeria last month increased the pump price of petrol from N165 per litre to N169, N184 and N218 per litre depending on the area in Abuja and other states.

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No deregulation of petroleum product

However, the minister warned that the Federal Government did not at any point deregulate petroleum products.

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His words:

“I can tell you authoritatively, we have not deregulated. The government is still subsidising petrol prices. If there are increases in price, it is not from the government.
“It is probably from the marketers but of course, I will talk to the authority to ensure that they actually regulate the price. This is not from the government, we have not deregulated.
“But a lot is going on to ensure that the queues end. As of yesterday, I noticed that the queues in Abuja are easing off.”

Fuel scarcity: We can’t continue to sell petrol at N165 per litre, marketers insist

Fuel queues on petrol stations resurfaced in most parts of Lagos state following the decision of some members of the IPMAN to close down their operations.

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The Lagos zonal chairman of IPMAN, Akin Akinrinade explained in an interview that its members did not embark on strike but can’t continue to operate in a hostile setting.

The petroleum marketers are however insisting on selling the premium motor spirit at N165 per litre.

Fuel scarcity: Commuters stranded, motorists lament as long queues resurface in Lagos

Recall that reported that on Monday, June 20, long queues for Premium Motor Spirit (PMS), also known as petrol resurfaced in filling stations across Lagos state.

This is coming two weeks after the long queues were first spotted in the Federal Capital Territory, Abuja, and neighbouring Nasarawa and Niger states among others.

Meanwhile, President Muhammadu Buhari had approved an increase in the freight rate being paid to transporters of petroleum products in a bid to clear the persistent fuel queues by motorists in parts of the country.


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