PETROL TO COST N97 PER LITRE AFTER REMOVAL OF SUBSIDY

The rumours about the likelihood of the stoppage of subsidy payments by the Muhammadu Buhari administration has made analysts to begin calculations on the price per litre of petrol if the move scales through.

According to Business Day analysis, petrol will retail at about N97 per litre if the subsidy is removed today, going by the current landing price of between N77 – N79 per litre, in addition to transport to pumphead, marketers and other margins for about N18.

Experts say if the subsidy is removed eventually, queues will disappear from the fuel stations.

On Saturday, December 12, Kemi Adeosun, the minister of finance, said the federal government would be forced to make tough decisions next year.

It is going to be tough and we are going to have to make extremely tough decision. We have got the resilience and space to do that,

she said.

Experts are already predicting that the minister’s statement means that the federal government would remove the subsidy early next year.

This fuel scarcity was intentionally created by the government to pave the way for the removal of subsidy. It is intentional scarcity.

— PDP Nigeria (@PdpNigeria) December 11, 2015

Fuel subsidy has been removed from the 2016 budget,and no noise over it.

— PDP Youth Frontier (@PDPNYF) December 13, 2015

Already, Nigeria’s major opposition party has already made mention of the fact that subsidy does not reflect in the government’s budget of next year. The world bank has also encouraged the Buhari government to remove the subsidy, saying that it would help boost the Nigerian economy.