The Minister of State for Petroleum Resources, Timipre Sylva, has said that the current economic situation in the country would ultimately result in an increment in the pump price of petrol.
Sylva said this on Friday while addressing journalists on the sidelines of a graduation and awards ceremony organised by the Offshore Technology Institute, University of Port Harcourt, Rivers State, where 14 master’s degree graduands of its 2019/2020 Batch Seven were recognised.
He stated that fuel subsidy is “benefiting certain businessmen in the country,” and as a result, will soon be scrapped by the President Muhammadu Buhari-led federal government.
Sylva said, “It is very unfortunate that if (there is) an increment in fuel pump price, (it) would have an impact on the marketplace and we are not happy about that. The President especially does not want to do it, but the economic realities are staring us in the face.
“Can we continue to support the subsidy, which is not necessarily benefiting the ordinary person, but is benefiting certain individuals who are businessmen in the country? I don’t want to identify the people that are benefiting.
“Subsidy is not directly benefitting Nigerians; the biggest contact with Nigerians is kerosene consumption used by local persons for cooking; as for diesel, it is used to transport food items and so on. But these have been deregulated for a long time now.”
Sylva added that the FG is still discussing with stakeholders, saying, “Right now, we are still in discussion with stakeholders, so we have decided to go on with subsidy for some time, until we are able to conclude our discussions with the stakeholders and announce the policy direction.”