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El-Rufai’s Committee report recommend fuel increase of N408.5 per litre

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The Committee set up by Nigeria Governors Forum which is headed by Kaduna State governor, Malam Nasiru El-Rufai to review the petrol pump price has recommended the price between N408.5 per litre and N380 per litre.

The report was submitted to the Governors Forum on Wednesday, while it called for immediate removal of fuel subsidy.

El-Rufai posited that the fuel subsidy regime was no longer sustainable even as smugglers were taking as smugglers and illegal markets in neigbouring African countries were taking advantage.

The report noted that the Federal Government should remove the Petroleum subsidy to save the nation.

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He noted that Nigeria, like other Organisation of the Petroleum Exporting Countries member countries, agreed to a cut production to keep the prices high but that Nigeria could not fully benefit from the regime because of subsidies.

He explained: “Between N70bn and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre, this is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist.

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“We are already at zero. I understand for tomorrow, so this scenario has occurred.

“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.

“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions.

“This is the root of the problem and now we are back to losing between N70 billion to N210 billion per month.”

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The governor revealed that the Nigerian National Petroleum Corporation (NNPC) was unable to remit the sum of N120 billion monthly into the federation account in line with its commitment in the 2021 budget because of challenges.

The committee recommended N408.5 litre as the appropriate price in the circumstance but that with concessions to labour unions, N380 per litre could be the minimum.

El-Rufai stated, “The committee recommends PMS pump price increment from the current N162 per litre to N408.5 per litre (negotiations with organized labour unions). N380per litre (settlement with organized labour).”

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