BREAKING: Petrol Price To Increase To N408.5 Per Litre

Petrol Price is set to increase to N385 per litre.

Onyxnews reports that a committee set up by the Nigeria Governors’ Forum (NGF) has recommended a petrol price of between N408.5 per litre and N380 per litre.

This online news platform understands that the Governors who made this known during a virtual meeting on Wednesday, May 19, called for immediate removal of fuel subsidy.

The Chairman of the Committee and Governor of Kaduna State, northern Nigeria,  Nasir El-Rufai while presenting the report of the NGF committee on subsidy on petrol, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neigbouring African countries were the beneficiaries.11

The committee recommended that the removal of subsidies should be immediate to save the nation’s economy.

Governor El-Rufai noted that Nigeria, like other Organisation of the Petroleum Exporting Countries member countries, agreed to a cut production to keep the prices high but that Nigeria could not fully benefit from the regime because of subsidies.

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The Kaduna State Governor said, “Between N70bn and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre, this is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist.

“We are already at zero. I understand for tomorrow, so this scenario has occurred.

“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.

“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions. This is the root of the problem and now we are back to losing between N70bn to N210bn per month.”

The Kaduna State Governor further explained that in the 2021 budget the Nigerian National Petroleum Corporation had committed to remitting a minimum of N120bn per month to the federation account, but it had been unable to do so.

While presenting the recommendation of the committee about the price of petrol, Governor El-Rufai further explained that only about 12 states consumed two-thirds of the petrol, which was heavily subsidised.

The committee recommended N408.5 litre as the appropriate price in the circumstance but that with concessions to labour unions, N380 per litre could be the minimum.

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El-Rufai stated, “The committee recommends PMS pump price increment from the current N162per litre to N408.5 per litre (negotiations with organized labour unions). N380per litre (settlement with organized labour).”

Onyxnews reports that this, he said, was necessary to free funds for critical projects and payment of other obligations.

Other governors who contributed to the debate included Governor Dapo Abiodun of Ogun State who said the 93 million litres which the NNPC claimed was consumed in Nigeria daily was agreed.