No Going Back on Subsidy Removal, Presidency Insists as Fuel Price Remains Stable

Patrick OdeyAugust 16, 2023

2 minutes read

The Presidency has urged Nigerians to disregard any rumours of a possible hike in the pump price of petrol, following the announcement by President Bola Tinubu that the fuel subsidy has been abolished.

The President’s spokesman, Ajuri Ngelale, said on Tuesday that the current pricing of petrol will be maintained without reversing the deregulation policy of the petroleum industry.

Ngelale said the President was convinced that by addressing the existing inefficiencies within the midstream and downstream sectors of the industry, the government could avoid any increase in the cost of fuel for consumers. He said the President was determined to ensure a competitive and liberalised market that would not be dominated by any single entity.

He also appealed to the Organised Labour movement to refrain from issuing any premature threats of strike action, and to engage in fact-finding and due diligence on the state of the petroleum industry before reaching any conclusions. He said the government was open to dialogue and consultation with all stakeholders on the issue.

Ngelale also revealed some graphics supplied by the Nigerian National Petroleum Company Limited (NNPCL), which showed that Nigeria had the cheapest pump price of petrol in the West African sub-region, compared to other neighbouring countries. He said Nigeria’s average pump price ranged from N568 to N630 per litre, while other countries had prices above N700 per litre.

“I wish at this juncture to also provide a set of graphics, which the President has authorised me to share with Nigerians, that otherwise would be confidential. These are graphics supplied to Mr. President by the NNPCL.

“In the graphics, what you will find is the present cost of refined premium motor spirit at the pump in each of the West African nations near us.”

He said the pump price in Senegal is N1,273 per liter; Guinea, N1,075; Cote d’Ivoire, N1,048; Mali, N1,113; Central African Republic and N1,414 per litre.

“Nigeria is presently averaging between N568 and N630 per litre. We are presently the cheapest, most affordable purchasing state in the West African sub-region by some distance. No country is below N700 per litre.

He said the removal of subsidy had led to a drop in fuel consumption from 67 million litres per day to 46 million litres per day, indicating a positive impact on the economy and the environment. He said the government was not at the end of the tunnel yet, and that more reforms and interventions were being implemented to ensure a sustainable and efficient petroleum industry.

“We have seen the PMS consumption in the country drop from 67 million litres per day consumption down to 46 million litres per day consumption. The impact is evident. What it also does mean though, is that we are not at the end of the tunnel.

“There’s still a bit of darkness to travel through to get toward the light and we are pleading with Nigerians to please be patient with us and as we promised from the beginning, we will be open with Nigerians.

“We will be transparent with them and we are ready to show you exactly what it is that our nation is facing concerning the illiquidity in the market in terms of foreign exchange as a result of what is now known to have been a gross mismanagement of the Central Bank of Nigeria (CBN) over several years,” Ngelale said.