The federal government has halted subsidy on Motor spirit (Petrol)
Minister of State for Petroleum Resources, Timipre Sylva, announced this on Thursday.
He said the decision was in line with the deregulation of the downstream oil sector.
Sylva, in a statement, noted that the move would boost the economic growth and development of Nigeria in the long run.
The minister said that the government cannot continue to subsidise petrol because it had no economic value.
He said after a thorough examination of the economics, “the government concluded that it was unrealistic to continue with the burden of subsidising MS to the tune of billions of naira every year”.
Sylva pointed out that the subsidy was benefiting the rich rather than the poor.
“Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage the private sector to take over the role of supplying Petroleum Products,” he said.