FG takes final decision as governors, oil marketers recommend new petrol price

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has demanded an immediate end to fuel subsidy in line with the state governors’ previous recommendation.

A committee set up by the Nigerian Governors Forum had in May recommended the removal of subsidy and the increment of petrol price up to between N380 and N408.5 per litre.

The committee had explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighbouring African countries were the beneficiaries.

FG rejects NGF committee's recommendations

However, the federal government rejected the governors’ recommendation.

The minister of state for petroleum resources, Timipre Sylva, in a statement, explained at the time that the current petrol price of between N162 and N165 per litre would stay.

Sylva added the current price would be retained until the ongoing negotiations with the organised labour were concluded.

He also asked oil marketers not to engage in any activity that could jeopardise the “seamless” supply and distribution system of the commodity.

Oil marketers back governors

However, months after the governors' recommendation was rejected, the president of PETROAN, Dr Billy Gillis-Harry, said oil marketers’ position is that fuel subsidy should be stopped.

He said the prices of petroleum products will be determined by market forces and this will create competition and lead to an increase in product availability when fuel subsidy is stopped.

Gillis-Harry asked the federal government to listen to the governors’ call, especially now that the country was grappling with funding challenges.

Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also on Friday backed the governors' call for the complete removal of fuel subsidy.

The oil marketers stated that the rise in the landing cost of petrol had further highlighted the need to put a stop to petrol subsidy.

FG reiterates stance

Responding to the marketers' demand, the federal government again on Friday, August 13, reiterated its stance, insisting that the current price remains until the ongoing negotiations with the organised labour were concluded.

The Punch reported that Sylva's media aide, Garba-Deen Muhammad, stated that he would re-echo the stance of his boss who had earlier stated the position of the federal government on the matter.

Muhammad said people were free to make analyses and recommendations but stressed that the government’s position on petrol price had not changed.