Home NEWS Deregulation: We Have Not Removed Fuel Subsidy- FG

Deregulation: We Have Not Removed Fuel Subsidy- FG

by InlandTown Editor
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The Federal Government says it has not removed subsidies on the premium motor spirit (PMS), best known as fuel. FG added that any price increase may have come from petroleum marketers.

Chief Timipre Sylva, Minister of State for Petroleum Resources, disclosed this while speaking with journalists on Monday in Abuja.

At a stakeholders’ consultation forum on regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, in Abuja, said the government still paid subsidies on petrol.

Lately, petrol marketers, including government-owned NNPC Limited, raised the petrol pump price from government-regulated N165 per litre to N174-N215 per litre.

He said:

“I can tell you authoritatively, we have not deregulated. The government is still subsidizing (petrol prices). If there are increases in price, it is not from the government.

It’s 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 ended. As of yesterday, I noticed that the queues in Abuja are easing off”.

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On the new regulation being considered for the industry, Sylva said they will provide clarity for the operators and attract investments to the mid and downstream sector.

The News Agency of Nigeria (NAN) reports that there was fuel scarcity recently in Abuja and several other cities across the country.

Although the crisis in Abuja began in 2021 after the government announced plans to remove fuel subsidies, a major shortage hit major cities including Lagos in February.

This led to queues at filling stations and left millions unable to power their cars and generators they rely on for electricity.

The discovery of high amounts of methanol in imported fuel also contributed to the scarcity then, as authorities tried to replace the off-spec product across the country.

Source: Guardian. ng

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