The Federal Government said on Thursday that it lacked funds to subsidise the cost of PMS.
The minister, Sylva, told journalists that since the introduction of the deregulation policy, Nigeria had saved about N1tn.
He said the saving came following the removal of subsidy and the expulsion of N500bn earmarked for subsidy payments in the 2020 budget, adding that the removal of foreign exchange differentials also saved the country about N500bn.
Sylva further revealed that plans to merge the PPPRA and the Petroleum Equalisation Fund into one agency called “The Authority,” had reached an advanced stage.
He assured Nigerians that the government was working hard to address the concerns in the downstream oil and gas sector.
He said, “It became necessary that the country cannot sustain subsidy payments, hence the decision to deregulate. Government has stopped subsidising petrol at the pump.
“It will now play its traditional role of protecting consumers from exploitation by ensuring that marketers do not profiteer at the expense of ordinary Nigerians and consumers of the product.”
Sylva said the government had stepped back in terms of price fixing for petrol, adding that market forces and crude oil price would continue to determine the cost of PMS.
Ogun governor backs FG’s actions
The Governor of Ogun State, Dapo Abiodun, however, backed the decision to hike electricity tariff and fuel price.
Abiodun, in an interview with State House correspondents after a meeting he had with the President on Thursday at the Presidential Villa, Abuja, said, “First, you want to enjoy lower prices when the prices of crude are low and then not want to pay for a slight increase when there is an increase in price of crude.
“The price of crude is directly proportional to the price of refined products. So, I believe that is what is happening at the moment.”
On electricity tariff, he said Nigerians must decide what they want.
“We all complain that we are not generating enough electricity and we all complain about the fact that we don’t have the right infrastructure to transmit electricity, we complain about the fact that the distribution companies do not seem to be efficient.
“The problem is because, perhaps, the pricing is not right. If you want people to invest in production of gas, in gas floatation, which our turbines and our power plants rely on, we must ensure that the entire value chain is profitable.”
Senators plan protest
The Senate leadership kept sealed lips on Thursday over the sudden increase in electricity tariff and petrol prices, about 48 hours after the relevant agencies effected the upward review.
The Senate had in its resolution which was promptly sent to the President, Major General Muhammdu Buhari (retd.), in July, prevailed on the National Electricity Regulatory Commision and the distribution companies to suspend the planned tariff hike till the first quarter of next year.
But NERC ignored the resolution and approved the increase in electricity tariff from N22 per kilowatt-hour to N66 per kWh, with effect from September 1.
However, several efforts made by one of our correspondents to get the official reaction from the Senate were not successful on Wednesday and Thursday as the Senate spokesperson, Senator Ajibola Basiru, declined comment on the issue.
Basiru promised to respond to our correspondent’s enquiries on phone but he had yet to do so as of the time of filing this report.
He did not also respond to the text message sent to him on the issue.
Similarly, the Chairman of the Senate Committee on Power, Senator Gabriel Suswan, could not be reached for comment but his Deputy, Senator Eyinnaya Abaribe, said the Senate would release a comprehensive statement on the issue.
He said, “I have spoken with the management of NERC, and they have assured us that they will brief us on what they have done.
“We will wait until they brief us as a committee before we can speak on the issue.”
Meanwhile, indications emerged on Thursday that some senators were planning to protest the fuel price hike as well as increase in electricity tariff.
They were also said to be canvassing an emergency reconvening of plenary, ahead of their September 15 resumption date, to discuss the issue.
A senator, who spoke on condition of anonymity, told our correspondent on Thursday that some of his colleagues were planning a protest through a press conference to reject the hike.
He said, “Serious consultations are going on at the zonal caucuses about the protest. We may call for emergency reconvening because we are under pressure from our constituents.
“We were disappointed in the hurried manner in which the fuel price hike was done without regard for consultation with the National Assembly.”
The Senate spokesperson, when contacted, said he was not aware of the planned reconvening of plenary.
“I’m currently in Imo State for an APC assignment. I’m out of touch. I can’t confirm whether or not an emergency sitting will be called by the Senate since I’m not in town and not in touch,” he said.
