El-Rufai-led committee proposes N385 per litre for petrol, describes subsidy as evil

A governors’ committee headed by Kaduna State Governor, Mallam Nasir el-Rufai on Wednesday made a proposal to the federal government to increase price of petrol to N385 per liter.

The committee which was set up by Vice President Yemi Osinbajo to look into the dwindling revenues of states and make recommendations to the Federal Executive Council also proposed that the Federal Government buys 113 buses to cushion the effects of the price increase.

Other members of the committee include Godwin Obaseki of Edo State, Kayode Fayemi of Ekiti State; David Umahi of Ebonyi State, Governor of the Central Bank of Nigeria (CBN), Mr Emefele , and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari.

The committee also recommended that the federal government should sell the three refineries after rehabilitation.

Nigeria Governors’ Forum (NGF) in a virtual meeting on Wednesday also endorsed the committee report describing subsidy as evil.

The NGF communiqué released after the meeting, seen by Ripples Nigeria also said the increase in the price of petrol to N385 per litre would help stem the increasing smuggling of the product to neighbouring countries.

The communiqué also quoted a South-west governor as saying “it would be very difficult to convince Nigerians and labour to accept the report from the commitee.”

While other governors in unison insisted that the earlier there is full deregulation, the better for the country.

Presenting the report to his colleagues, el-Rufai was quoted as saying the increase in the price of petrol to N385 per litre would help stem the increasing smuggling of the product to neighbouring countries.

If petrol sells at N385 per litre, FAAC would gain between N1.3 trillion and N2. 2.3 trillion per annum,” El Rufai was quoted to have said.

 

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