“By the provisions of the Petroleum Industry Act (PIA), the subsidy regime vanished on 17 February 2022. The law states that six months after the enactment of the PIA, petroleum products, particularly PMS must be priced at market rates,” Mr Kyari said.
The Nigerian National Petroleum Company Limited on Thursday said the petroleum subsidy regime in the country ended in February 2022., disclosed this while speaking during an interview on Channels Television’s Politics Today programme Thursday evening.
Responding to why the petroleum subsidy was removed last Monday rather than the last week of June, Mr Kyari said by the provisions of the Petroleum Industry Act , the subsidy regime “vanished” on 17th February 2022. “There are subsidies on bread, fertilizer, and all kinds of other things all over the world. But the government in its wisdom, decided that there would be an appropriation for subsidy in 2022 and also a provision for subsidy up till the half of 2023.“That means that provision is made, but the law sets the pricing at the market. So you can choose to spend your money which is what the government did. But the government did not fund the subsidy because it didn’t have the money to fund it.
“… technically correct, but budget is budget. You have to fund your budget if you don’t have to fund your budget then it doesn’t exist,” he said.Mr Kyari added that the latest decision to remove the subsidy only affects Premium Motor Spirit , otherwise known as petrol, adding that other products have been deregulated.The Nigerian government has, for decades, subsidised fuel and fixed retail prices of petroleum products.
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