PMS Subsidy ‘Unrealistic’, Only Benefits Rich Nigerians — Timipre Sylva

Related stories

As the US, UAE Close its Doors, FG Pledges Diplomatic Resolution

Retired Envoys: Without Ambassadors, Nothing 'll change By Abiola...

What NATO Countries Spend on Military, Health, and Education

Key Takeaways Currently, every NATO member spends less on their military...

Nigeria: Flying Blind In The Global Space

By Owei Lakemfa The United States, US, government of...

Is the world shutting its door on Nigeria?, By Dakuku Peterside

Visa restrictions are more than bureaucratic hurdles. They are...

[VIDEO] End of an Era!Tears as Buhari is Laid to Rest in Daura

https://m.youtube.com/watch?v=yElAG5mJUbA&pp=ygUYUHJlc2lkZW50IGJ1aGFyaSBidXJpZWQg By Abiola Olawale In a solemn moment, Nigeria has bid...

Minister of State for Petroleum Resources, Chief Timipre Sylva, said it’s unrealistic for the government to continue subsidising the Premium Motor Spirit (PMS) otherwise known as petrol.

The Minister said the subsidy has become a burden on the government year-in-year-out, adding it has no economic value as it only benefits a few rich people in the country.

Sylva explained that deregulation of the downstream oil sector was to ensure economic growth and development of the country.

In a statement in Abuja on Thursday, the minister urged Nigerians to ignore recent misguided comments and innuendos on the issue.

“It has become expedient for the Ministry of Petroleum to explain misconceptions around the issue of Petroleum Products Deregulation.

“After a thorough examination of the economics of subsidising PMS for domestic consumption, the 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 the subsidy was benefiting in large part 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.

According to him, market forces will henceforth determine the price at the pump.

This, he said was in line with global best practices adding that government would continue to play its traditional role of regulation; to ensure that the strategic commodity was not priced arbitrarily by private sector suppliers.

“A regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates.

“Petroleum Products are refined from Crude Oil. Therefore the price of Crude (the feedstock) for the refining process will affect the price of the refined product,” he added.

Sylva noted that when Crude Oil prices were down, government, through its regulatory functions ensured that the benefits of lower Crude Oil prices were enjoyed by Nigerians by ensuring that PMS price was lowered.

'Dotun Akintomide
'Dotun Akintomide
'Dotun Akintomide's journalism works intersect business, environment, politics and developmental issues. Among a number of local and international publications, his work has appeared in the New York Times. He's a winner of the National Youth Service Corps (NYSC) Award. Currently, the Online Editor at The New Diplomat, Akintomide has produced reports that uniquely spoke to Nigeria's experience on Climate Change issues. When Akintomide is not writing, volunteering or working on a media project, you can find him seeing beautiful sites like the sandy beaches that bedecked the Lagos coastline.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
As the US, UAE Close its Doors, FG Pledges Diplomatic ResolutionWhat NATO Countries Spend on Military, Health, and EducationNigeria: Flying Blind In The Global SpaceIs the world shutting its door on Nigeria?, By Dakuku Peterside[VIDEO] End of an Era!Tears as Buhari is Laid to Rest in DauraEnd of an Era: Massive Security Presence in Katsina as Nigerians Prepare for Buhari’s FarewellFemi Adesina Counters Critics, Says Buhari Would 've Died Before Now if He Used local HospitalsTribute To The Late Former President, Muhammadu Buhari GCFR[PHOTOS]Buhari: Tinubu Arrives Katsina for State BurialBreaking! Buhari’s Remains Arrive in Nigeria as Political Elites Gather in Daura for BurialEnd of an Era!Buhari's Remains depart London for Nigeria for Full State BurialOba Adetona's Burial: Fierce Race for Next Awujale of Ijebuland CommencesBuhari had no property in the UK, says Femi AdesinaBuhari: FG declares Tuesday as Public Holiday Details as FG Declares Tuesday a Public Holiday to Honor Buhari
X whatsapp