FG Confirms Removal Of subsidy On Pertol
Government on Monday stamped a note of finality on the removal of subsidy on petrol.
It said the adjustment of tariff on electricity is driven by the need to guarantee efficiency in power supply.
The price of petrol went up from N138.63 to between N162 and N164 per litre last week after the September price modulation.
Power Distribution Companies (DisCos) also adjusted the tariffs.
Nigerians have been lamenting the payment of high rates in the two sectors which are central to their lives.
President Muhammadu Buhari and three ministers at separate fora rose in defence of the decision to end the subsidy regime.
The President spoke through Vice President Yemi Osinbajo at the retreat for ministers. Three ministers – Lai Mohammed (Information), Timipre Sylva (Petroleum State) and Saleh Mohammed (Power) – spoke at a news conference.
The government also listed some of the measures put in place to prevent Nigerians from being cheated and how to ameliorate the harsh effects of the increased rates.
Buhari said having lost 60 per cent of revenue due to the effects of Coronavirus Pandemic, the government had no alternative than to do away with petrol subsidy which it could no longer afford.
The minister of Information puts the amount expanded on petrol subsidy in 13 years at N10.41 trillion.
He added that the Buhari administration expended N1.7 trillion to supplement electricity tariffs shortfalls.
Describing the new price regime in the sectors as “painful”, Mohammed said the government “will not inflict hardship” on Nigerians and promised that “brighter and more prosperous days will come soon.”
He added: “The government can no longer afford to subsidize petrol prices because of its many negative consequences. These include a return to the costly subsidy regime. With 60% less revenues today, we cannot afford the cost.
“The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration. The days in which Nigerians queue for hours and days just to buy petrol, often at very high prices, are gone for good. Of course, there is also no provision for fuel subsidy in the revised 2020 budget because we just cannot afford it.