Just as President Muhammadu Buhari is away to London for anti-corruption summit, the federal government has announced the removal of fuel subsidy.
According to a report on Vanguard, the President Buhari-led Federal Government has today, Wednesday, 11th May 2016, officially removed subsidy on Premium Motor Spirit, also known as petrol as it will now sell for N145 per litre.
Quotes from inside Aso Rock read: "We expect this new policy will lead to improved supply & competition & eventually drive down pump prices, as we have experienced with diesel. DPR & PPPRA mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products."
The Government believes that in the long term, that improved supply and competition will drive down prices. It also started that the new policy will prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.
"In addition, this will also lead to increased product availability & encourage investments in refineries & other parts of downstream sector."
"PPPRA has informed that it will announce a new price band effective today, 11th May, 2016 & the new price for PMS will not be above N145p/L and accordingly, PPPRA template will reflect this in the pricing of the product."
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