There are indications that the Federal
Government will stop kerosene subsidy in
2014 bringing to an end a scheme that has
been widely criticised as corrupt and
controversial.
Our correspondent learnt on Wednesday that
no provision was made for kerosene subsidy
in the N4.77tn 2014 budget proposal
presented to the National Assembly by
President Goodluck Jonathan.
Ministry of Finance sources, who gave the
hint, said the budget proposal did not make
any provision for kerosene subsidy.
The Federal Government spent N634bn to
subsidise the retail price of kerosene in the
past three years.
The Chairman, House Committee on
Petroleum (Downstream), Mr. Dakuku
Peterside, who recently condemned this as
wasteful spending, also said N110bn was
spent on kerosene subsidy in 2010, N324bn
in 2011 and N200bn in 2012, which came up
to N634bn in the three years.
He said, “In the year 2010, we spent
N110,068,533,988 to subsidise kerosene. This
is not the cost of kerosene but the cost of
subsidising the product alone. In 2011, it got
worse and the government spent
N324,089,961,319 on kerosene subsidy.
Although we have yet to reconcile this, we
spent N200bn in subsidising kerosene in
2012.
“So, in three years, we have spent N634bn
subsidising kerosene. This is one third of
what we spend in a year on capital budget.”
Despite the huge spending on Kerosene
subsidy, the masses could not, until recently,
buy the product at the regulated price of
N40.90k per litre.
They had settled for alternative sources of
energy such as firewood, charcoal, sawdust,
electricity and gas.
However, this has recently changed as the
Nigerian National Petroleum Corporation,
through the Independent Petroleum Marketers
Association of Nigeria and the Depot and
Petroleum Products Marketers Association,
has been selling kerosene at N50 per litre.
Commenting on this, the President, Nigerian
Liquefied Petroleum Gas Association, Mr.
Dayo Adeshina, said it would be a welcome
idea if kerosene subsidy could be stopped by
the government.
He said, “Government needs to take a
conscious decision to drive a mass shift from
kerosene to LPG as it was done in Indonesia.
The Indonesian government took a conscious
decision to stop kerosene subsidy, which was
gulping $9bn a year. They found that they
would only need to invest $2bn in cylinder
and cooking stoves to save $7bn.
“We need to get to that level when we will
consciously shift from kerosene to LPG and
that can only happen with the right
government policy.”
Adeshina argued that the N634bn spent on
kerosene subsidy had little impact on the
masses, saying it enriched only a few people.

bet y is Nigeria like dis?
y??
#50 per ltr to #150,

See Wahala I hope it's only a joke, they have not finished with fuel they wana start with Kerosene.

Smh even if they stop the subsidy...the residual income will still be embezzled! We need God to change this country to good for good!

I for one already pay #150 for kerosene so what is d fuse abt?