According to report reaching oyogist.com, the Federal Government turned down the recommendation by the Nigeria Governors’ Forum for an increase in the price of Premium Motor Spirit, popularly called petrol, the Federal Government again on Friday reiterated its stance, insisting that no decision on the adjustment of petrol price would be reached until the ongoing negotiations with the organized labour were concluded.
The Federal Government had first, on May 21, rejected the governors’ recommendation of shooting petrol price up to between N380 and N408.5 per litre and removing fuel subsidy.
The governors’ advice was based on the report of its committee chaired by the Kaduna State Governor, Mallam Nasir El-Rufai, seeking the full deregulation of the oil sector.
El-Rufai, while presenting the report of his committee to the NGF, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighboring African countries were the beneficiaries.
But the Minister of State for Petroleum Resources, Chief Timipre Sylva, in a statement, said the current petrol price of between N162 and N165 per litre would stay.
Despite the Federal Government’s initial stance, oil marketers under the aegis of Petroleum Products Retail Outlets Owners Association of Nigeria, on Friday, demanded an immediate end to fuel subsidy in line with the state governors’ recommendation of May.
However, the Federal Government reiterated its stance of May, stating that no decision on the adjustment of petrol price would be reached until the ongoing negotiations with the organized labour were concluded.
Meanwhile, oil marketers including the Independent Petroleum Marketers Association of Nigeria on Friday backed the governors by calling for the complete removal of fuel subsidy.
