JUST IN: Over N1trn Saved From Removal Of Fuel Subsidy – FG

The Minister of State for Petroleum Resources, Timipre Sylva has announced that the Nigerian government has so far saved over N1trn from the removal of fuel subsidy.

The minister disclosed this during a press briefing in Abuja on Thursday.

He stated that the government before now, spends over N1trn annually to subsidise the cost of fuel.

“The deregulation of petrol is a necessary and an inevitable policy direction that we had to take at this time. And we have so far saved over N1trn from it,” he said.

The Minister noted that by the deregulation exercise, the government has backed out of the business of determining the price of Premium Motor Spirit, adding that the price is to be determined by the marketers who import the product.

He said, “At this point the government no longer fix prices for the product, we now allow the marketers and market forces to do so.

“But we watch keenly to ensure that the marketers do not charge too much for the product”.

The Minister speaking further, said that efforts are ongoing to introduce LPG, LNG as well as CNG as a cheaper alternative for PMS.

“PMS is a refined product from crude oil, and whenever the crude oil goes up, the price of the refined product will also go up. That is why we have the sudden increase in the price”.

“We are working to introduce a cleaner and cheaper form of fuel, such the LPG, CNG, and the LNG to be an alternative to consumers. This will be rolled out in October,” he added.

More details shortly……