FG rules out petrol price increase in June

Chinazor Megbolu

The Federal Government has ruled out increase in fuel pump price in June 2021.

The Minister of State for Petroleum, Dr. Timipre Sylva, said this on Friday, saying that there will be no increase in the price of premium motor spirit (PMS) in June this year.

The Minister statement was in tune with that of the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Mele Kyari, who disclosed in April 2021 that the price of petrol will not be increased until ongoing negotiations between labour unions and government are concluded.

The NNPC boss in his remarks then warned that the corporation could not continue to bear the subsidy burden on its books.

He stated that the organisation pays between N100-120 billion monthly to keep the pump price as it is presently.

Sylva further noted that despite the huge burden of under-recovery, the federal government is not in a hurry to increase the price of petrol to reflect market realities presently.

“The current price of petrol will be retained in the month of June until the ongoing engagement with organised labour is concluded,” the statement read.

“This clarification becomes necessary in the light of recent reports regarding the resolution of the Nigeria Governors Forum to increase the pump price of petrol.

“In this regard, I would like to strongly urge petroleum products marketers not to engage in any activity that could jeopardise the seamless supply and distribution system in place.

“I also urge members of the public to avoid panic buying because the Nigerian National Petroleum Corporation (NNPC) has enough stock of petroleum products to keep the nation wet,” Sylva said.