Minister of Petroleum for Petroleum Timipre Sylva, yesterday said the Federal Government has made an irreversible decision to withdraw subsidy on petrol soon because it can no longer afford it.
Sylva explained that although withdrawal of subsidy will be painful initially, it will pay off for the poor in the long run.
According to him, the present arrangement favours a few rich individuals and firms.
The minister, who spoke to reporters in Abuja, said: “Subsidy removal will come with some pains but the question is, can we continue with petroleum subsidy as a country? If we cannot continue, what options do we have?
“I think the best is take out subsidy. From the government of ex-Military President Ibrahim Babangida in the 80s, it has defied all efforts to withdraw petrol subsidy. Diesel is now deregulated, Kerosine is now deregulated but petrol has defied deregulation. Should we continue with this subsidy?
“The Federal Government does not lack courage, our President does not lack political will.
“Now, can we carry on with subsidy if you consider the amount of money swallowed by subsidy? If you want to carry on with subsidy, how do we get the money to fund it? The best way out is to take out subsidy because if we don’t, we will continue to beg the question,” he said.
