Federal Government on Monday defended the removal of subsidy on petrol, noting that it could no longer afford to sustain subsidize the price of petrol.
It said the adjustment of tariff on electricity is driven by the need to guarantee efficiency in power supply.
The price of petrol went up from N138.63 to between N162 and N164 per litre last week after the September price modulation.
President Muhammadu Buhari and three ministers at separate fora rose in defence of the decision to end the subsidy regime.
The President spoke through Vice President Yemi Osinbajo at the retreat for ministers. Three ministers – Lai Mohammed (Information), Timipre Sylva (Petroleum State) and Saleh Mohammed (Power) – spoke at a news conference.
Lai Mohammed said: “The government can no longer afford to subsidize petrol prices because of its many negative consequences. These include a return to the costly subsidy regime. With 60% less revenues today, we 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. The days in which Nigerians queue for hours and days just to buy petrol, often at very high prices, are gone for good. Of course, there is also no provision for fuel subsidy in the revised 2020 budget because we just cannot afford it.”
