We never promised to keep petrol price low – FG

Nigeria’s minister of state for petroleum resources, Timipre Sylva, says the Federal Government did not at any time promise to keep the pump price of Premium Motor Spirit, or petrol, permanently low.

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In a statement published on Thursday on the ministry’s Instagram page, the minister also said the government had concluded that it could no longer bear the burden of petrol subsidy.

“After a thorough examination of the economics of subsidising PMS for domestic consumption, the Federal Government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year, more so when this subsidy was benefiting in large part the rich, rather than the poor and ordinary Nigerians,” Sylva said in the statement titled ‘Deregulation: The facts and the reasons behind the policy’.

He said deregulation means that the government would no longer continue to be the main supplier of petroleum products but would encourage the private sector to take over the role of supplying the products.

“This means also that market forces will henceforth determine the prices at the pump. In line with global best practices, the government will continue to play its traditional role of regulation to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers,” the minister said.