The Federal Government of Nigeria has on Thursday announced the removal of subsidy on petrol, says that it has become majorly beneficial to the rich than the poor.
Minister of State for Petroleum Resources, Timipre Sylva disclosed this in a statement, where he affirmed that the move was in accordance with the decision to monitor the oil sector.
This is coming few days after the fuel pump price was hiked to N140 per liter.
Sylva, also stressed that the move would boost the economic growth and development of Nigeria, adding that the government cannot continue to subsidize petrol because it had no economic value.
The minister also said that henceforth, market forces will determine the price at the pump, assured that the government would continue to play its role of regulation to ensure that the commodity was not priced arbitrarily by private sector suppliers.
In his words: “after a thorough examination of the economics, the government concluded that it was unrealistic to continue with the burden of subsidizing PMS to the tune of trillions of naira every year”.
“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.
Nwada Ugochinyere Onyechere reporting, Obinwannem News