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FLASH | El’Rufai’s Committee Recommend Increase in Petrol Price

by on May 20, 2021
 

A Committee set up by the Nigeria Governors’ Forum, NGF headed by Governor Nasir-el Rufai has recommended full deregulation of the of the price of premium motor spirit, popularly known as petrol.

The forum said this in a communiqué issued on Wednesday night after its 30th teleconference.

As contained in the Communique, el-Rufai, gave a briefing on the appropriate pricing of PMS in Nigeria, calling for full deregulation.

It quoted el-Rufai as noting that between N70 billion and N210 billion was estimated to be spent every month to keep petrol price at N162/litre, “a situation that is completely unsustainable.”

The Governors accepted the recommendation on full deregulation of petrol with suggestion that the pump price of the product should be around N385 per litre.

The committee, which was set up early this year by the National Economic Council (NEC) headed by Vice President Yemi Osinbajo also has as members Governors Godwin Obaseki of Edo State, Kayode Fayemi of Ekiti State; and David Umahi of Ebonyi State

The other members of the committee are the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari.

The other governors endorsed which is subject to final approval by NEC, which will also meet today.

However, in a communiqué released after the meeting , the Kaduna State governor further revealed that between N70 billion and N210 Billion is spent monthly to subsidise the petrol price at N162 per litre.

El-Rufai reportedly suggested that the increase in the price of petrol to N385 per litre would help stem the increasing smuggling of the product to neighbouring countries.

According to him, if petrol sells at N385 per litre, FAAC would gain between N1.3 trillion and N2.3 trillion per annum.

The committee also recommended that the federal government should sell the three refineries after rehabilitation.

NGF also said in the communique that parties involved in Executive Order #10 are working earnestly to resolve the issues surrounding the implementation of the order.

President Muhammadu Buhari in 2020 signed into law Executive Order No. 10 of 2020 for the implementation of financial autonomy for state legislature and judiciary order.

The forum in the communiqué signed by it Chairman and the Ekiti State Governor, Dr Kayode Fayemi, said talks on the Order had reached an advanced stage with the Ministry of Labour, conference of Speakers and the National Judicial Council.

“There are, however, legal aspects of the order that need to be tied up, but which cannot take place if officials responsible for these final processes are on strike.

“Governors are happy to implement the demands of the judiciary and the Legislature,” he said.

The NGF, however, resolved to call for the immediate dissolution of the Presidential Implementation Committee on the Autonomy of State Legislature and Judiciary.

The forum said the presidential committee was now acting as a permanent committee “basically misguiding and overheating the relationship between state governments and the other arms of government.”

The NGF also agreed on the need to continue to maintain COVID public health guidelines and vaccination protocols to ensure that the transmission of the virus was kept at the lowest level possible.

The communiqué noted that the Governor of Delta State, Dr Ifeanyi Okowa, who is the NGF Chairman, Sub-Committee interfacing with the Presidential Steering Committee (PSC) on COVID-19 provided an update to the Forum on the activities of the PSC.

It stated that Okowa informed the forum’s members of the expected commencement of the administration of the second dose of the AstraZeneca vaccine in the country, starting with those who received the first batch of the vaccine.

“The Governor noted that the PSC is currently working to get additional vaccine doses for the country.

“He urged his colleagues to continue to maintain COVID public health guidelines to ensure that the transmission of the virus is kept at the lowest level possible,” the communiqué stated.

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