Nigerian government to scrap fuel subsidy payment

The Nigerian government is bound to reduce the pump price of petrol following the scrapping of fuel subsidy regime in the West African country, an official said on Saturday.

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A new pricing template signed by the Nigerian government on Thursday effectively removed the payment of subsidy on petrol, on account of the drop in global crude oil prices and the dip in government revenue, said Ibe Kachikwu, Nigeria’s oil minister and head of the state-run oil firm.

fuel subsidy
fuel subsidy

This will bring to effect the reduction of fuel pump price in a couple of days to come, the official told reporters in Port Harcourt, capital of Nigeria’s oil-rich Rivers State after a meeting with the local Petrol Product Pricing Regulatory Agency (PPPRA).

The new pump price will be far below the present official pump price, he said.

He said the decision was reached by the government, having noted the fuel subsidy regime was characterized by monumental fraud.

A decision by Nigerian government to cut off fuel subsidy in 2012 sparked outrage and nationwide protest. But there have been calls recently by citizens of the African country for the government to finally cut the subsidy on oil. Enditem

Source: Xinhua

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