The Minister of Petroleum Resources, Dieziani Alison-Madueke yesterday gave a hint of plans by the Federal Government to remove subsidies being paid on Petrol and Kerosene products. The Minister gave the hint while speaking at the Nigerian Oil & Gas Conference which took place in Abuja
While addressing the delegates, Alison-Madueke said subsidy being paid to marketers for petrol and kerosene was no longer sustainable and was only beneficial to the rich in the society.
"The continued regulation of the downstream sector has its positive and negative impacts on the economy. But the negative effect is more than the positive. The subsidy policy cannot be sustained any longer.This is because the subsidy payment is not benefiting the poor it is targeting; rather, it is benefiting the rich. The industry needs to move to next level by increasing revenue and curbing oil theft and pipeline vandalism.Without belabouring the point, we are all aware that the government has to deregulate the downstream sector. Continuing regulation, we all are aware, has negative effects. It is basically unsustainable, it discourages investment, and principally, it benefits the rich, not the masses in the society that we intend to reach in the first place" The minister said.Analyst however say if petrol subsidy is removed, Nigerians would have to pay more for both products. Petrol for instance would rise to N144.66 for a litre, which is the landing cost of a refined litre as against the N97 its been sold for now at filling stations while Kerosene would go as high as N154.36 per litre, N138.87 as landing cost and N15.49 for distrubution margin, suming up to N154.36 it would be sold for