L
LequteMan
Guest
The pump price of petrol in Nigeria in the coming weeks is expected to rise to N97 per litre as the federal government is considers gradual removal of fuel subsidy.
Recent reports had indicated that the commodity would currently sell for N97 per litre if the subsidy on it is removed.
“The total subsidy figure for 2015, when taken along with the NNPC’s subsidy payment, will be in excess of N1tn. The current pricing work we are doing has shown that there shouldn’t really be subsidy. The government doesn’t need to fund subsidy," Minister of state for Petroleum resources, Emmanuel Ibe Kachikwu on Monday said.
“The price of refined petrol today is N87. It was N97 before it was reduced and we really have to go back to that because we don’t really have the finance to fund it. There are lots of safety barometers between the N87 and N97per litre regime. The government does not have to fund subsidy and yet the prices would have been fairly close to what it is today.
“That is the first mechanism we are going to work with. It is when that mechanism fails that we will begin to look at a total subsidy exit. We believe we can achieve that.”
Recent reports had indicated that the commodity would currently sell for N97 per litre if the subsidy on it is removed.
“The total subsidy figure for 2015, when taken along with the NNPC’s subsidy payment, will be in excess of N1tn. The current pricing work we are doing has shown that there shouldn’t really be subsidy. The government doesn’t need to fund subsidy," Minister of state for Petroleum resources, Emmanuel Ibe Kachikwu on Monday said.
“The price of refined petrol today is N87. It was N97 before it was reduced and we really have to go back to that because we don’t really have the finance to fund it. There are lots of safety barometers between the N87 and N97per litre regime. The government does not have to fund subsidy and yet the prices would have been fairly close to what it is today.
“That is the first mechanism we are going to work with. It is when that mechanism fails that we will begin to look at a total subsidy exit. We believe we can achieve that.”
