The Goodluck Jonathan Government have
concluded plans to stop subsidizing the consumption of petroleum products in
the country, especially petrol and kerosene following increasingly dwindling
revenue. Yet in the last 6years, the same government have not been able to
development another source of income.
The government said: “Without belabouring the point, we are all aware that
the government has to deregulate the downstream sector. Continuing regulation,
we all are aware, has negative effects. It is basically unsustainable, it
discourages investment, and principally, it benefits the rich, not the masses
in the society that we intend to reach in the first place.
“This means that deregulation is the only way in which
capital investment can be encouraged. It can give employment opportunities. At
the same time, we are all aware that in a democratic polity, there has to be a
balance between different policies and directives of government and the needs
and desires of the people of Nigeria at all times.”
Nigeria produces crude oil, but
can't even refine products for its citizens. Serious countries around the world
who do not even have crude oil have built functional refineries. So, who is
fooling who?
Minister of Petroleum, Diezani
Alison-Madueke, gave hint of the planned removal of subsidies on both petrol
and kerosene by the Federal Government on Tuesday at the Nigerian Oil and Gas
Conference in Abuja.
If the subsidies on both products are removed, Nigerians will be paying a minimum of N144.66 for a litre of petrol against the official regulated price of N97.
N144.66 is the landing cost of the product and the distribution margins as contained in the pricing template as prepared by the Petroleum Products Pricing Regulatory Agency for the month of March.
For kerosene, consumers will have to pay N154.36 per litre, which comprises the landing cost of N138.87 and distribution margins of N15.49, instead of the official pump price of N50.
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