FG claims that hike in fuel price is not because of fuel subsidy removal

On Monday, the Federal Government increased the price of petrol from the initial N97 to N147. Even though this didn't go down well with many Nigerians, it made fuel available and it was believed that the Federal Government removed subsidy.

The Minister of Information and Culture, Alhaji Lai Mohammed, speaking at a news conference in Abuja, justified the increase in the price of petrol to N145.

He also faulted a claim that the new price regime was about removal of subsidy. He further debunked the claim.

Read what he said below:

“We have no choice but to liberalise the price of petrol if we are to end the crippling fuel scarcity that has enveloped the country, ensure the availability of the product and end the suffering of our people over the lingering scarcity.”

“There is no subsidy to remove because no provision was made for subsidy in the 2016 budget. Last year, the government paid out N1tn in subsidy, and that’s one sixth of this year’s budget. We can’t afford to pay another N1tn in subsidy.”

Justifying the government’s action, he said the fall in the price of crude oil had led to the reduction of foreign exchange available in the country.

This, he explained, had forced marketers to stop the importation of the product, thus making the Nigerian National Petroleum Corporation the supplier of over 90 per cent of petrol.