The Minister of State for Petroleum, Chief Timipre Sylva, has assured Nigerians that there will be no price increase in petrol in June.
The Minister in a statement on Friday said it had become necessary to clarify the issue of petrol pump price in view of the recommendation by the Nigerian Governors’ Forum (NGF) that the product should be sold at a minimum of N380 per litre.
The statement read, “Once again it has become necessary to assure Nigerians that despite the huge burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (PMS) to reflect current market realities.
“The current price of petrol will be retained in the month of June until the ongoing engagement with organized labour is concluded.
“This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.”
He added, “In this regard, I would like to strongly urge petroleum products marketers not to engage in any activities that could jeopardize the seamless supply and distribution system in place while calling on members of the public to avoid panic buying because the Nigerian National Petroleum Corporation has enough stock of petroleum products to keep the nation wet.”
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On Wednesday, the Governor of Kaduna State, Nasir El-Rufai, who headed the committee on fuel subsidy, said that the removal of subsidies should be immediate to save the economy.
While presenting the recommendation, El-Rufai said N408.5 litre is the appropriate price in the circumstance but that with concessions to labour unions, N380 per litre could be the minimum.
He explained that smugglers and illegal markets in neighbouring African countries were taking advantage of the subsidy regime.
El-Rufai stated, “The committee recommends PMS pump price increment from the current N162per litre to N408.5 per litre (negotiations with organized labour unions). N380per litre (settlement with organized labour).
“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions. This is the root of the problem and now we are back to losing between N70bn to N210bn per month.”
