JUST IN: FG removes subsidy, fuel now to sell N145 per litre

The Federal Government on Wednesday officially ended the subsidy regime on premium motor spirit, popularly known as petrol, and will allow market forces determine the cost of the product.

This was reached during an extensive meeting held at the headquarters of the Nigerian National Petroleum Corporation in Abuja.

Officials, who attended the meeting, said the price of petrol may start from N145 per litre, but explained that the government would strictly monitor compliance.

Oil marketers recently had attributed the increase to the recent price of crude oil at the international market.

According to reports, the marketers complained about the challenge in sustaining the improvement in the supply of petrol across the country.

Lawal Taofeeq, corporate affairs manager of Nipco Plc, urged the federal government to manage petrol subsidy properly in order to ensure adequate sustenance of the present improvement in fuel supply.

He noted that the marginal rise in the price of crude oil could force the government to review the pump price of petrol upwards, particularly should the government insist on not paying petrol subsidy to oil marketers.

“We’ve started importing products. But on sustenance, it depends on how the government handles the issue of subsidy. You know subsidy on petrol has returned and its management will go a long way in affecting fuel supply,” he said.

“Before, there was no subsidy on petrol. But now, considering the rise in crude oil price, there is subsidy despite the fact that the official pump price hasn’t been changed. So, if the subsidy issue is not managed properly, marketers may not want to import the product unless they are sure of their money.

“The government has been using the price modulation technique, and as crude oil price is going up, it will be adjusting the pump price of petrol. Any moment from now, there may be an upward review in the pump price of petrol to take care of the rise in the price of crude oil in the international market”, he added.