Nigerians To Pay More For Petrol As FG Removes Subsidy

The federal government on Thursday said it had approved the total removal of subsidy on Premium Motor Spirit better known as petrol.

Minister of State for Petroleum Resources, Timipre Sylva, who made the disclosure in a statement, said the move was in tandem with the deregulation of the downstream oil sector.

Sylva noted that the move would boost the economic growth and development of Nigeria.

The minister added that the government could not continue to subsidise petrol because it had no economic value.

He said after a thorough examination of the economics, “the government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year”.

Also Read: FG Never Promised To Lower Petrol Price – Minister

Sylva pointed out that the subsidy was benefiting the rich rather than the poor and ordinary Nigerians which it was meant for.

“Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage the private sector to take over the role of supplying Petroleum Products,” he said.

The minister added that henceforth, market forces will determine the price at the pump.

He, however, said that the government would continue to play its regulatory role to ensure that the commodity was not priced arbitrarily by private sector suppliers.