Federal Government Scraps Oil subsidy, Petrol to now sell for N85 per litre

      

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The Federal Government announced on Friday that it has scrapped fuel subsidy
Speaking to journalists at the Port Harcourt refinery, the Minister of State for Petroleum, Ibe Kachikwu, said the government can no longer continue paying the subsidy due to the fraud involved in the programme.

According to Kachikwu,  the government can no longer afford the payment due to dip in its revenue caused by the drop of crude oil prices.
He said a new price template he signed off on Thursday effectively removed the payment of subsidy on petrol and that oil marketers would be informed of the development in the coming days and petrol is likely to be sold for N85 per litre.
“It is out, I signed off on it yesterday (Thursday). I imagined that in the next couple of days the marketers would get advice on that. The nice thing about the PPPRA, where I signed up on it yesterday, is that the price will be far below N87,” he said.

“So for the first time, people will understand that the pricing modulation I was talking about is not a gimmick. It is for real. We have gone to find out how we will be able to fluctuate this market to reflect what the reality of the crude market is. The objective is that one, we cannot afford to continue to subsidise.
“We can’t even understand where those subsidies were going to. There is a lot of fraud elements in it so we need to cut that off.
“The second is the earning capacity of the Federal Government is deteriorating by the day with lower prices of crude and come out more,” he said.
Source: Premium Times.