The President Muhammadu Buhari-led administration had on Thursday announced that it has removed subsidy on petrol.
The Federal Government disclosed this information in a statement released by the Minister of State for Petroleum Resources, Timipre Sylva.
The Minister said that the development is in line with the deregulation of the downstream oil sector.
According to Sylva, the decision would boost the economic growth and development of Nigeria, he added that the Federal Government can’t subsidise petrol because it had no economic value.
Sylva noted that after carrying a thorough examination of the economics, “the government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year”.
He further stated the subsidy was benefiting the rich rather than the poor and ordinary Nigerians.
“Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage the private sector to take over the role of supplying Petroleum Products,” he said.
He noted that henceforth, market forces will determine the price at the pump.
The Minister also assured that the government would continue to play its role of regulation to ensure that the commodity was not priced arbitrarily by private sector suppliers.