JUST IN: FG Rejects Govs’ Advice, Says No to Fuel Price Increase

The Federal Government yesterday rejected recommendation by the Nigeria Governors Forum for an increase in the price of petrol, saying despite the huge under-recovery otherwise known as subsidy paid on the product, the current price of between N162 per litre and N165 per litre would remain.

The Nigeria Governors’ Forum (NGF) had last Wednesday recommended a petrol price of between N408.5/litre and N380/litre, and also called for immediate removal of petrol subsidy.

The NGF’s advice was based on the report of its committee headed by the Kaduna State Governor, Mallam Nasir el-Rufai, that full deregulation of petrol should be entrenched.
But in a statement issued and signed by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja yesterday, the federal government ruled out the possibility of a hike in petrol price any time soon.

The minister said the current price would be retained until the ongoing negotiation with the organised labour was concluded.

Sylva said: “Once again, it has become necessary to assure Nigerians that despite the huge burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.

“The current price of petrol will be retained in the month of June until the ongoing engagement with organised labour is concluded.

“This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.”
He strongly urged petroleum products marketers not to engage in any activity that could jeopardise the seamless supply and distribution system in place.

The minister also urged members of the public to avoid panic buying, saying the Nigerian National Petroleum Corporation (NNPC) has enough stock of petroleum products.