The Minister for Peteroleum, Mr. Timipre Sylvia in a press conference stated that it was unrealistic for government to continue to maintain the subsidy on petroleum prices across the nation. It should be noted that the NNPC recently released its audited financial statement with refineries accumulating a loss of over N150 billion.
He explained that that the briefing became important following the rising misinformation and innuendos around the issue of Petroleum Products Deregulation. The minister indicated that “After a thorough examination of the economics of subsidising PMS for domestic consumption, the FG concluded that it was unrealistic to continue with the burden of subsidizing PMS to the tune of trillions of Naira every year. More so when this subsidy was benefiting in large part the rich rather than the poor and ordinary Nigerians”.
The minister explained that the Government will no longer continue to be the main supplier of Petroleum Products but will encourage private sector to take over the role of supplier of Petroleum Products in the nation. Thus, allowing the market forces to determine prices at the pump. He further stated that “in line with global practices, the government will continue to play its traditional role of regulation; to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers”. He assured that the action is taken in the overall interest of Nigerians and a bid to attract investment in the Midstream and Downstream Oil Sector.
Finally, the minister noted that the “government is very mindful of the likely impact higher PMS prices would have on Nigerians. To alleviate this, we are working very hard to roll out the auto-gas scheme, which will provide Nigerians with alternative sources of fuel and at a lower cost”.
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