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Business News of Thursday, 9 July 2020

Source: www.mynigeria.com

FG removes petrol subsidy

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Minister of State for Petroleum Resources, Timipre Sylva has announced that the Federal Government has ended subsidy on Premium Motor Spirit, PMS, also known as Petrol.

The minister who said that the move is in line with the deregulation of the downstream sector revealed that it will boost the countries economy.

He said that the decision was taken after realizing that subsidy has no economic value to the country.

“The government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year”, he said.

He pointed out that subsidy was only beneficial to the rich and nit the poor.

“Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage the private sector to take over the role of supplying Petroleum Products,” he said.

He added that market forces will henceforth be the determining factor fro pump price.