I’ve no information on fuel subsidy removal — Lai

The National Economic Council (NEC) has recommended an increase in the pump price of petroleum, according to TheCable.

Petrol price currently sells between N162 and N165 per litre in the country.

In a report, the online newspaper said NEC, chaired by Vice President Yemi Osinbajo, made the recommendation in November 2021.

This is reportedly part of government’s plan to fully deregulate the prices of Premium

Motor Spirit and eliminate monthly subsidy payments with provisions to ensure fair competition in the market.

The recommendations were put forward by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation on the appropriate pricing of PMS in Nigeria.

The report was said to have been presented by the Kaduna State Governor Nasir El-Rufailed committee.

“The recommendation has since been reconsidered and dropped by the committee. According to the new report, the committee recommended full deregulation of PMS prices by February 2022 - raising the price by about N130/140 per litre.”

“It also recommended that all retailers should post PMS prices at all times on a designated website and smartphone app and they are expected to post price changes no earlier than within 15 minutes of the price change.

“With the recommendations, the committee added that the federal government would save N250bn per month on petrol subsidy removal.

“If PMS subsidies are eliminated by February 2022, N250bn in deductions would have been incurred, but the remaining N195bn in anticipated PMS subsidy deductions could be redirected towards FGN funding of the cash-transfer programme,” TheCable said in its report.

There have been fears of a likely fuel price increase in Nigeria since Zainab Ahmed, Minister of Finance, announced the plan to remove petrol subsidy in June.

However, after a meeting with President Muhammadu Buhari on Tuesday, Senate President Ahmad Lawan said Buhari told him that he did not order anyone to remove fuel subsidy.

Ahmed is yet to react to the claim of Lawan.

Meanwhile, the Minister of Information and Culture, Lai Mohammed, told State House reporters that “As for the removal of fuel subsidy, I think you’ll give me time to consult with relevant departments and ministries and I’ll get back to you.”