The Federal Government has again refused the recommendation by Nigerian governors for an increase in the price of Premium Motor Spirit (PMS), popularly called petrol, insisting that no decision on the adjustment of petrol price would be reached until the ongoing negotiations with the organised labour were concluded.
The Federal Government had first, on May 21, rejected the recommendation by the state chief executives to hike the pump price of petrol to between N380 and N408.5 per litre and the discontinuance of the payment of fuel subsidy.
This recommendation was based on the report of the Nigerian Governors’ Forum (NGF) committee chaired by the Kaduna State Governor, Mallam Nasir El-Rufai, seeking the full deregulation of the oil sector.
El-Rufai, while presenting the report of his committee to NGF, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighbouring African countries were the beneficiaries.
But the Minister of State for Petroleum Resources, Chief Timipre Sylva, in a statement on Friday, said the current petrol price of between N162 and N165 per litre will be retained until the ongoing negotiations with the organised labour were concluded.
According to him, “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 organised 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.”
The Minister of State also asked oil marketers not to engage in any activity that could jeopardise the “seamless” supply and distribution system of the commodity.
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