Connect with us

News

BREAKING: El-Rufai’s committee on subsidy recommends N408.5 and N380/litre for petrol

Published

on

A committee set up by the Nigeria Governors’ Forum (NGF) on subsidy on petrol had during a virtual meeting on Wednesday recommended a petrol price of between N408.5 per litre and N380 per litre.

It called for immediate removal of fuel subsidy.

The Committee is headed by Nasir El-Rufai, Governor of Kaduna State.

While presenting the report of the NGF committee, El-Rufai, who is the chairman of the committee, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neigbouring African countries were the beneficiaries.

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

He 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.

The Kaduna 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.”

He 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, he 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.

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).”

This, he said, was necessary to free funds for critical projects and payment of other obligations.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

TRENDING

Politics4 months ago

Ex- Super Eagles Players Praise Asiwaju Tinubu’s Contributions to Nigeria, Sports

Former Nigeria’s international football players have commended All Progressives Congress National Leader, Asíwájú Bola Tinubu, for his contributions to democracy...

News4 months ago

Obiano’s wife was drunk – Bianca Ojukwu opens up on ‘valedictory slap’

Bianca, the wife of late Odumegwu Ojukwu, has explained why she slapped Ebele Obiano at the inauguration ceremony of Prof....

Politics4 months ago

Kaduna govt directs appointees seeking political office to resign

The Kaduna State Government has directed all political appointees and public servants aspiring for political offices in the 2023 general...

News4 months ago

Buhari approves new NBC board

President Muhammadu Buhari has approved the reconstitution of the Governing Board of the National Broadcasting Commission, NBC, following the expiration...

News4 months ago

Police arrest 2 soldiers, 3 others for robbing POS agent in Borno

The police in Borno have arrested five suspects, including two soldiers for alleged armed robbery and culpable homicide. Commissioner of...

News4 months ago

Terrorists kill DPO, 2 other policemen, 4 vigilantes in Niger

Suspected bandit terrorists have again hit Niger State, during which a Divisional Police Officer, DPO, two of his officers and four vigilante members were killed.  The...

Politics4 months ago

PDP will die in 2023 if it loses election – Atiku

Atiku Abubakar, a former Vice President, has said that the opposition Peoples Democratic Party (PDP) might not survive another eight...

News4 months ago

Presidency blames ‘Jonathan’ govt for recent national grid collapse

The Presidency has blamed the immediate past administration for the recent collapse of the nation’s power system. President Buhari’s Personal...

Uncategorized4 months ago

Mrs Dolapo in Maiduguri, marks Osinbajo’s birthday at North East Children’s Centre

Wife of the Vice President, Mrs Dolapo Osinbajo, was in Maiduguri on Monday to visit the North East Children’s Learning...

News7 months ago

Zulum to commission 22 schools, other projects in southern Borno

Governor Babagana Zulum of Borno has begun a five-day official visit to the southern part of the state to inaugurate...

Advertisement

Trending

Copyright © 2018 Daily correspondents