Higher Petrol Price Inevitable, FG Can’t Afford Subsidy - Zainab Ahmed Says

Petrol price in Nigeria will go higher from its present N165 if the price of crude keeps going up, Zainab Ahmed, the finance minister has said.

Zainab spoke on Monday during her contribution in an interaction arranged by the Presidency Media team and State House reporters.

According to the Minister of Finance, Budget and National Planning, the Federal Government will allow the prices of petroleum products to be determined by the market forces in line with the deregulation of the oil sector.

“We absolutely cannot find the money for the subsidy, we don’t have the cash to pay for subsidy”, she said.

“We do realise that there will be a few improved hardships on a segment of the society. But we are searching at the way to deal with that,’’ she added.

In another file published by means of Reuters, Ahmed called the growing rate of crude a “double-edged sword,” as the Federal Government seeks a cope with Organised Labour over gasoline fees.

She said the relevant authorities forecasts an optimistic outlook on the growing crude charges.

But simultaneously, it should deal with the “tussle” with Labour over subsidies and growing neighborhood charges of gasoline.

According to her, the growing oil price is a double-edged sword for Nigeria.

While it boosts sales, it creates gasoline price headache at the identical time.

Oil prices are averaging round $sixty four in step with barrel, above the $40 consistent with barrel projected inside the N13.6 trillion ($35.74 billion) budget report.

Early in March, the Petroleum Products Pricing Regulatory Agency (PPPRA) created country wide uproar, while it launched the price template for petrol for the month.

The template indicated that the retail fee should go to N212 per litre, from N162-N165.

Labour unions vowed to resist the boom.

Government halted the increase, because it reputedly shouldered the subsidy burden, calculated at over N103 billion for the month.

For how long will authorities be capable of put the lid on fee increase as crude fees move up and alternate charge worsens?