Subsidy: Presidency Denies Report On Fuel Price Increment To N302

The Nigerian presidency has debunked media reports which said that the National Economic Council (NEC) has recommended increment of petrol pump price to N302 per liter by February 2022.

Some media platforms on Wednesday reported that the Federal Government may increase price of Premium Motor Spirit (PMS), better known as petrol, to N302 per litre in February 2022 as part of the recommendation of the NEC in November 2021.

The reports also had it that it was part of the government’s plan to fully deregulate the prices of petrol, thereby halting the monthly subsidy payments with the aim of ensuring fair competition in the market.

The reports further disclosed that the recommendations were made by NEC ad-hoc committee interfacing with the Nigerian National Petroleum Company (NNPC) on the appropriate pricing of fuel in Nigeria.

The report was said to have been presented by Nasir El-Rufai, Kaduna State Governor and head of the committee, set up last year by NEC and headed by Vice-President Prof. Yemi Osinbajo.

Reacting to the reports, the Senior Special Assistant to the President on Media & Publicity, Office of the Vice President, Mr Laolu Akande in his Twitter handle (@akandeoj) wrote that though there have been ongoing discussions on the issue of fuel subsidy, NEC, however, never made any such recommendation as reported in the media.

“While there are indeed ongoing discussions on the issue of fuel subsidy, at no time has NEC made any such resolution as this report claims. Public discourse can be better served by seeking further clarification from relevant quarters on matters of such importance,” Akande tweeted on Wednesday, tagging one of the online media that carried the report.

Currently the price of petrol is between N162 and N165 per litre in Nigeria.
Issue of fuel subsidy removal have been at the front burner with divided positions. Some say it should be removed to stop heavy government spending in reducing cost of the product for Nigerians, while some argue that fuel subsidy removal will unleash untold hardship on the citizens due to attendant high cost of things.

In May 2021, the Nigeria Governors’ Forum (NGF) had also recommended N385 per litre but was met with wide rejection by stakeholders.

The Group Managing Director and Chief Executive Officer of NNPC, Malam Mele Kyari had at a function in November 2021, said that by February 2022, fuel subsidy fuel subsidy regime would have ended in Nigeria, adding that the price of the product may range between N320 and N340 per litre.

Kyari then said subsidy removal would definitely be achieved in 2022 as it was now fully backed by law.

“There will be no provision for it legally in our system, but I am also sure you will appreciate that government has a bigger social responsibility to cater for the ordinary and therefore engage in a process that will ensure that we exit in the most subtle and easy manner,” the NNPC GMD had said.

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