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Monday, March 27, 2023

Rising Cost Of Subsidy May Lead To N385 Per Litre Fuel Pump Price Soon

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Following billions of naira been spent to subsidise the Premium Motor Spirit (PMS), otherwise known as petrol, a Committee set up by the Nigeria Governors’ Forum, NGF headed by Governor Nasir-el Rufai has recommended full deregulation of the of the price, which may likely be sold  at N385 per litre, if Committee’s recommendations are implemented.
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In its communique issued, the Committee, has disclosed that with billions of naira being spent on subsidy, which according to the Committee is between N70 billion and N210 billion estimated to be spent every month to keep petrol price at N162/litre, “a situation that is completely unsustainable.”

The Committee also said, if petrol sells at N385 per litre, FAAC would gain between N1.3 trillion and N2. 2.3 trillion per annum.

The forum said this in a communiqué issued on Wednesday night after its 30th teleconference, calling for full deregulation.

The Governors accepted the recommendation on full deregulation of petrol with suggestion that the pump price of the product should be around N385 per litre, as reported.

The has said that with of the fuel pump price to N385 per litre would help stem the increasing smuggling of the product to neighboring countries, while also calling on Federal Government to sell the three refineries after being rehabilitated.

NGF also said in the communique that parties involved in Executive Order #10 are working earnestly to resolve the issues surrounding the implementation of the order.

In the communiqué signed by the forum’s Chairman and the Ekiti State Governor, Dr Kayode Fayemi, said talks on the Order had reached an advanced stage with the Ministry of Labour, conference of Speakers and the National Judicial Council.

According to him, “there are, however, legal aspects of the order that need to be tied up, but which cannot take place if officials responsible for these final processes are on strike.”

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