PMS will be sold at N340 per litre in mid 2022, FG says. This is likely to trigger a chain of negative outcomes beyond the remedy of govt 5k
By Ishaya Ibrahim, News Editor
The federal government has announced that by mid-next year, it will phase out fuel subsidy, a situation that could put the pump price of fuel, also known as PMS, at N340.
Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari, said the market value of fuel when subsidy is removed will be N340, more than 100 percent higher than the current rate.
Inflation which has been on the increase, will likely double once the government announces the N340 per litre of the new pump price of fuel.
Minister of finance, Zainab Ahmed, says the government will provide N5,000 monthly stipend to assist at least 40 million poor Nigerians cope with the impact of the fuel subsidy removal. The price of 6kg gas is sold at the same N5,000.
A former senator who represented Kaduna Central in the federal legislature, Shehu Sani, has warned that the government N5,000 won’t be able to mitigate the negative impact the new price will have on the standard of living of Nigerians.
He says via his Twitter handle that: “When the pump price rises to N340,salaries or wages will be worthless,landlords will increase the rent,the schools will increase the tuition & parents must pay;food prices,transport,water & electricity bills will jerk up.”
He warned: “They live in Mars and think 5k can solve all these problems.”