The Federal Government on Friday announced that it would not increase the price of Premium Motor Spirit, otherwise known as petrol in June, despite the recommendation by the Nigeria Governors Forum that the cost of the commodity is increased.
A committee set up by the Nigeria Governor’s Forum had on Wednesday called for immediate removal of petrol subsidy, recommended a petrol price of between N408.5/litre and N380/litre.
However, the Minister of State for Petroleum Resources, Chief Timipre Sylva, in statement on Friday, said that the government ruled out the possibility of a hike in petrol price any time soon.
Although the minister admitted that petrol subsidy had been a huge burden on the government, he assured Nigerians that the cost of the commodity would remain the same at between N162/litre and N165/litre.
According to the minister, “Once again it has become necessary to assure Nigerians that despite the huge burden of under-recovery, the Federal Government is not in a hurry to increase the price of Premium Motor Spirit (petrol) to reflect current market realities.
“The current price of petrol will be retained in the month of June until the ongoing engagement with organised labour is concluded.”
He added, “This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.”
Sylvia stated that he would like to strongly urge petroleum products marketers not to engage in any activity that could jeopardise the seamless supply and distribution system in place.
He called on members of the public to avoid panic buying because the Nigerian National Petroleum Corporation, had enough stock of petroleum products to keep the nation wet.