The Federal Government has announced that the full deregulation of the downstream sector is yet to commence “because of the desire of President Buhari not to inflict more pains on the masses.”
The minister emphasized that the landing cost of petrol is N163 but it was being sold for N161 per litre, indicating that full deregulation was yet to take off in the country.
He said going by the current exchange rate, the products could have been sold at N183 per litre.
He also said the FG spent N10.4 trillion on petrol subsidy between 2016 and 2019, stressing that the country was losing N1 billion daily to fuel subsidy between 2016-2019.
He added that the country was in a bad shape because of the crash of crude oil globally.
“We have not fully deregulated because of the concerns the government has for Nigerians. Price of fuel could go up to N183 per litre going by the current rate of the dollar. We need to open up the economy, even though, the initial stage may bring pains to Nigerians,” he stated.
The Federal Government two weeks ago increased the ex-depot price of petrol from N 138.62 to N147.67, prompting marketers to adjust their petrol prices to between N158 and N162 from N148 to N150 in August. The ex-depot price is the price at which government sells petrol to marketer.