FG No Longer Fixing Petrol Price …Admits Govt Unable To Pay Subsidy -Sylva
The Minister of State for Petroleum Resources, Chief Timipre Sylva, has reiterated that the Federal Government is no longer fixing the pump price of petroleum products in the country.
Sylva made this known while briefing newsmen, yesterday, on the increase in the pump price of Premium Motor Spirit (PMS), also known as petrol.
It would be recalled that the Petroleum Products Marketing Company (PPMC) had, last Wednesday, announced a new Ex-depot price of N151.56 for petrol.
Ex-depot price is the price marketers buy products from depot owners.
An increase or decrease in ex-depot price has an effect on the pump price of petrol.
“Government is no longer in the business of fixing prices for petroleum products, we have stepped back.
“Our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering,” he said.
Sylva said it was unfortunate that people were blaming the government, noting that the deregulation of the sector was imperative for the economy.
He said that it was also a consensus among stakeholders for such a strong policy direction.
According to him, the well-being of Nigeria remains paramount to the government.
“You all know that President Muhammadu Buhari aligns with ordinary Nigerians, especially the poor.
“Left for him, he will never allow an increase in pump price; for this to happen, it means that it is an inevitable decision.
“Covid-19 took the price of crude oil to zero zone,” the minister said.
The minister also disclosed that the Federal Government was not currently capable, financially, to pay the subsidy.
Sylva said that since the introduction of the deregulation policy, the country has saved about N1trillion.
Meanwhile, the Federal Government has said that the Petroleum Equalisation Fund (PEF) and Petroleum Products Pricing Regulatory Agency (PPPRA) would be merged.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, said this while briefing newsmen, yesterday.
He noted that the oil sector regulatory agencies will become one as contained in the new Petroleum Industry Bill (PIB).
“PEF and PPPRA will emerge as one under the name ‘The Authority’ and will be helping to police the pump price of petrol so that nobody will profiteer,” he said.
PEF deals with the equalisation of petroleum products to ensure price uniformity, while PPPRA focuses on petroleum products pricing and monitoring of compliance.
SOURCE: thetidenewsonline.com
