Governors Mull N380 per litre of petrol, El Rufai admits 'we are at zero'
On Wednesday, the 36 state Governors held a virtual meeting of the Nigeria Governors’ Forum and agreed that the current subsidy regime is unsustainable.
A committee set up by the NGF headed by Kaduna State Governor, Mallam Nasir El-Rufai recommended a petrol price of between N408.5 per litre and N380 per litre.
While presenting the report of the NGF committee on subsidy on petrol, El-Rufai, explained that the current subsidy regime cannot continue because smugglers and illegal markets in neigbouring African countries were the beneficiaries.
He noted that Nigeria could not fully benefit from the high price of crude oil in the international market, making states to receive meagre allocations 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," he stated.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.