He recently revealed this after the price of the product went from N145/liter to N162/liter at gas stations.
According to him, Nigerians need to understand that the FG can no longer afford to pay for subsidies on petrol amid the current economic realities.
He added that the angry reactions that have greeted the latest prices of PMS are therefore unnecessary and totally mischievous.
His words, “The long drawn fuel subsidy regime ended in March 2020 when the PPMC (Petroleum Products Marketing Company) announced that it had begun fuel price modulation in accordance with the varying market dynamics.”
“Recall that the price of fuel then dropped from N145 to N125 per liter and then to between N121.50k and N123.50k in May.”
“With the low price of crude oil then, the cost of petrol which is a derivative of crude oil, fell and the lower pump price was passed on to the consumers to enjoy.”
“With the price of fuel inching up, the price of petrol locally is also bound to increase, hence the latest price of N162 per liter.
“If by chance the price of crude drops again, the price of petrol will also drop and the benefits will also be passed on to the consumers.
“The angry reactions that have greeted the latest prices of PMS are therefore unnecessary and totally mischievous,”
“The truth of the matter is that subsidizing fuel is no longer feasible, especially under the prevailing economic conditions in the country.”
The government simply can no longer afford fuel subsidies, as revenues and foreign exchange earnings have fallen by almost 60 percent due to the downturn in the fortunes of the oil sector.
“Yet the government has had to sustain expenditures, especially on salaries and capital projects.
“As oil prices recover, there will be some increases in PMS prices.
“From 2006 to 2019, fuel subsidy gulped N10.413 trillion, that is an average of N743 billion per annum.
“Petrol prices in Nigeria remain the lowest in the West-Central African sub-region.”
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