Fuel Scarcity: Senate Queries FG Over Oil Subsidy

Fuel Scarcity: Senate Queries FG Over Oil Subsidy

The Senate Committee on Petroleum (Downstream) has queried the Federal Government over the alleged payment of N26 per litre to subsidise the pump price of Premium Motor Spirit.

 

The committee, which cut short its recess to address the lingering fuel scarcity questioned how the government was maintaining a pump price of N145 per litre when the landing cost of the commodity was now N171.

 

According to the Chairman of the committee, Senator Kabiru Marafa, it was learnt that the government was subsidizing the pump price of petrol without the approval of the Senate.

 

He explained that the government would have breached the constitution by paying subsidy without the approval of the Senate.

 

He stated that the committee would ask questions on the issue of subsidy because the current government had since stopped it and that the Senate ought to know when it started again.

 

Meanwhile, the Group Managing Director of the Nigerian National Petroleum Corporation, Dr Maikanti Baru said that the money was not a subsidy but additional funds to import the product.

 

He said that the NNPC had to take such action because President Muhammadu Buhari directed it to maintain the current price of petrol at N145/litre.

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