President Muhammadu Buhari, yesterday, asked Nigerians to expect a further increase in the price of petrol, saying people would pay more as soon as the price of crude oil in the international market recovers.
He also justified the latest increase in electricity tariff, which has raised so much dust in the polity.
The President, who stated these at the First Year Ministerial Performance Review Retreat at State House Conference Centre, Abuja, said: “The COVID-19 pandemic, which has affected economies globally, has compelled us to make some far-reaching adjustments that may cause some initial pain, but which is necessary for long-term gains.
“As you all know, when oil prices collapsed at the height of the global lock-down, we deregulated the price of premium motor spirit, PMS, such that the benefit of lower prices was passed to consumers.
This was welcome by all and sundry. The effect of regulation though is that PMS prices will change with changes in global oil prices. This means, quite regrettably, that as oil prices recover, we would see some increases in PMS prices.”
Continuing, President Buhari who was represented by Vice-President Yemi Osinbajo, said: “There are several negative consequences if the government should resume the business of fixing or subsidizing PMS prices. First of all, it would mean a return to the costly subsidy regime.
“Today we have 60% less revenue, we just cannot afford the cost. The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.
“Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices. Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now have no choice.
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