August 9, 2022

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NNPC Claims Increase in Fuel Price not Government-backed

2 min read
increase in fuel price

The Federal Government has stated that it has not eliminated subsidies on Premium Motor Spirit (PMS), also known as petrol.

Chief Timipre Sylva, Minister of State for Petroleum Resources, revealed this to journalists in Abuja on Monday.

The minister spoke on the sidelines of a stakeholders’ consultation forum on rules hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The authority arranged the meeting to analyze and review midstream and downstream petroleum rules in order to leave the industry with laws and policies that will enable needed investment in the sector.
“I can tell you authoritatively, we have not deregulated. The government is still subsidizing petrol prices. If there are increases in price, it is not from the government.

increase in fuel price

“It is probably from the marketers but of course, I will talk to the authority to ensure that they actually regulate the price. This is not from the government, we have not deregulated.
Sylva was responding to marketers’ hike in the pump price of petroleum from N165 per liter to N169, N184, and N218 per liter depending on location in Abuja and other states.

Recently, fuel was scarce in Abuja and numerous other cities across the country.

Despite the fact that the problem in Abuja began in 2021, when the government announced plans to eliminate fuel subsidies, a serious scarcity affected major cities such as Lagos in February.

This caused long lines at gas stations and left millions of people unable to power their automobiles or the generators on which they rely for power.

The revelation of excessive levels of methanol in imported fuel exacerbated scarcity at the time, as officials attempted to replace the off-spec goods across the country.

increase in fuel price

“But a lot is going on to ensure that the queues ended. As of yesterday, I noticed that the queues in Abuja are easing off,” the minister said.
The Association of Distributors and Transporters of Petroleum Products (ADITOP) had told NAN that the present gasoline scarcity in the FCT was caused by the high cost of Automotive Gas Oil (AGO) used by petroleum tankers and the low freight rate.

Since then, the Federal Government has hiked transporter freight rates by N10, representing a significant rise from N10.46 to an additional N10 and now N20.46.

This caused long lines at gas stations and left millions of people unable to power their automobiles or the generators on which they rely for power.

 

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