FG Rules out Fuel Price Increase in June

By Peter Uzoho

Despite the advice of state governors on the removal of petrol subsidy, the federal government has said there will be no increase in the price of petrol in June.

The Minister of State for Petroleum Resources, Chief Timipre, stated this Friday in a statement he personally signed, adding that despite the huge under-recovery otherwise known as subsidy paid on the product, the current N162 per litre will remain.

The Nigerian Governors Forum (NGF) had advised the federal government, based on the report of its committee headed by the Kaduna State Governor, Mallam Nasir el-Rufai, on the need for full deregulation of oil sector.

The governors also advised the federal government based on the recommendation of the el-Rufa-led committee that the removal of subsidy will make the pump price of petrol hover around N385 per litre to reflect current market realities.

However, the minister in the statement, said the current price of N62 per litre of petrol will 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 organized 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 jeopardize 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 to keep the nation wet.