FG removes subsidy on petrol; as product now to sell officially at N145/litre

After nearly two days of speculations over a planned removal of subsidy on some petroleum products by the Federal Government, Minister of State for Petroleum Resources, Ibe Kachikwu, Wednesday, confirmed decision of government to finally scrap the policy on Premium Motor Spirit (PMS), saying the move is geared towards stabilizing the availability of the product across the country.
The implication of the decision means the product will now officially for at N145 per litre.
A statement released by Kachikwu, said the decision to scrap the subsidy followed a meeting which held Wednesday and which had in attendance, labour leaders including NUPENG, NLC, TUC, PENGASSAN as well as leadership of the Senate, House of Representatives, and the Governors’ Forum.
Since Monday, the Vice President, Prof. Yemi Osinbajo and Kachikwu had at several fora hinted on the removal of the controversial subsidy which has remained contentious and had pit Nigerians including civil society and labour groups across the country against the former administration of Goodluck Jonathan.
While preparing Nigerians for the hardship ahead, Vice President Yemi Osinbajo had said that the government would have to take tough decisions on the desirability of retaining fuel subsidies, adding that it had become necessary to remove them.
“No matter how we slice it, we are in economic times that are challenging, but they provide us with some of the best opportunities for making a real difference in our economic life.
“I think that we are at a point that a lot has been said about subsidies and what to do with subsidies. I think we are at a point where we must make many difficult decisions and make very tough choices.
“But I think the Nigerian people are prepared for all what is required and all it would take to make a real difference,” Osinbajo, who spoke at the third Ogun State Investors’ Forum held in Abeokuta on Tuesday, said.