The federal government may increase the price of Premium Motor Spirit (PMS), better known as petrol, to N302 per litre in February 2022 as part of the recommendation of the National Economic Council (NEC) in November 2021.

TheCable understands that this is part of the government’s plan to fully deregulate the PMS prices, eliminating monthly subsidy payments with provisions to ensure fair competition in the market.

Petrol price is currently between N162 and N165 per litre in Nigeria.

The recommendations were put forward by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation (NNPC) on the appropriate pricing of PMS in Nigeria. The report was presented by Nasir El-Rufai, governor of Kaduna state and head of the committee.

The committee was established last year by NEC headed by Vice-President Yemi Osinbajo to look into the dwindling revenues of states.

Other members of the committee include Godwin Obaseki, Kayode Fayemi, and David Umahi, governors of Edo, Ekiti and Ebonyi states respectively; as well as Godwin Emefiele, governor of the Central Bank of Nigeria (CBN); and Mele Kyari, group managing director of the Nigerian National Petroleum Corporation (NNPC); Zainab Ahmed, minister of finance, budget and national planning.

In May 2021, the Nigeria Governors’ Forum (NGF) had also recommended N385 per litre — but stakeholders, including the federal government, rejected the recommendation.

The recommendation has since been reconsidered and dropped by the committee.

According to the new report, the committee recommended full deregulation of PMS prices by February 2022 — raising the price by about N130/140 per litre.

It also recommended that all retailers should post PMS prices at all times on a designated website and smartphone app — and they are expected to post price changes no earlier than within 15 minutes of the price change.

With the recommendations, the committee added that the federal government would save N250 billion per month on petrol subsidy removal.

“At current rates, the PMS subsidy is reducing transfers into the federation by about NGN 250 billion per month, and could, if PMS subsidies are not eliminated, result in deductions of NGN 3 trillion in 2022,” the committee’s resolution reads in part.

“The large-scale time-limited (6-months) cash transfer proposed as a way of transferring the subsidy “directly to the people” would cost N600 billion but would by paving the way for the elimination of PMS subsidies, enable the federation to recover N3 trillion in revenues that would otherwise go to PMS subsidies.

“If PMS subsidies are eliminated by February 2022, N250 billion in deductions would have been incurred, but the remaining N195 billion in anticipated PMS subsidy deductions could be redirected towards FGN funding of the cash-transfer programme.”

The NEC committee also recommended a market-based pricing mechanism, as another option, that would ensure petrol price ceilings at least once a month.

Meanwhile, the federation account allocation committee (FAAC) will meet on Wednesday (today) for the monthly meeting to distribute revenues between federal, state, and local governments.

At the last FAAC meeting, NNPC had said it would deduct some funds as value shortfall incurred due to differentials between the current PMS retail
price and actual open market price in January 2022.

Most states are presently experiencing fiscal stress and kicking against deductions of the shortfall from FAAC remittances.

The committee further noted that NNPC has failed to keep its commitment of N120 billion per month for value shortfall at N162 per litre for petrol.

Currently, around N250 billion, it added that the development continued to shrink remittances to the FAAC and described the deductions as “arbitrarily”.

https://www.thecable.ng/exclusive-nec-recommends-n302-per-litre-petrol-price-by-february/amp

Nothing will ever surprise me in this terrorist sponsors, terrorist sympathizers, corrupt, deceitful, wicked and evil government anymore. For all the pains that you are causing Nigerians, double portions will you and your entire family members get. Remember the late Abacha ooo.

Goodluck Jonathan right now

Maxymilliano:


https://www.thecable.ng/exclusive-nec-recommends-n302-per-litre-petrol-price-by-february/amp

that is the change we are looking for

Is better to call you devil than to call you buhari

TINUBU brought in Buhari and called it sophisticated.

This is wickedness from south west thank God the same Fulani terrorists groups are killing them now.

If this goes through, 2023 election will be a walk in the park for opposition parties

That’s very nice I hope before 2023 petrol will be #500 inshallah Amen.
Sai Baba 2032...

Nigerians like to suffer

We warned them against Buhari in 2015 and 2019 now it's dawn on them


Petrol is still N165 and you all are crying , what will now happen if Buhari APC increase fuel to N302? Una go hear am

They have started packaging another Buhari in the person of Bola Tinubu for 2023
...
Una go hear word last last for this country

We Buharists are not complaining.

Sai baba

BeeBeeOoh:
We Buharists are not complaining.

Sai baba

They have built our own BMC filling stations across the nation, we be buying fuel at #100 only , just shout Sai baba and your tank will be filled

Checkout this post, for Christians.

https://www.nairaland.com/6946217/apostle-arome-osayi-why-should

Amazing development!

Sai Buhari

So far as APC apologists and Buharist will also buy at that rate, we will still adapt. I'm just tired for any argument under this administration. I'm tired!...

Maxymilliano:


https://www.thecable.ng/exclusive-nec-recommends-n302-per-litre-petrol-price-by-february/amp

Bubu N302 per litre
SanwoEko N800 plus Tollgate
Discos unquantifiable
Poverty high level

Hahahaha... Una no go kill us for this country with hardship.


Meanwhile see Oga Tinubu promising Nigerians free WASSCE fee if elected.


https://www.youtube.com/watch?v=FjH5ejJlHZY

Govt of scammers and fraudsters.An Increment not commiserate with income. This simply mean more hardship loading. Brace for impact people.Meanwhile,
where is Prof.Tam David-West? He also made the useless promise that a Buhari regime will sell fuel for #40 back then

Last last Useless NLC will go on strike and they will do their idiotic Negotiation with Government they will settle for N220 per liter

Hmmm

And Salary did not increase

Is there no way to pay this Buhari his remaining salary so he can leave office immediately instead of waiting till 2023 when his tenure finish.
Is better we take urgent action so that he will not kill us all before our time.

We go get sense by force. U want to deregulate and claim U have removed subsidy and yet Na U dey fix the price

Thank you baba Buhari. Allowing Market forces to determine the price of petroleum is the best thing to happen to us.
No more subsidy again. God bless the incorruptible General. Nigerians Love you

Haa!! esi beru oloun eyin werey gbogbo yi..

Becos they know d military would do d needful by rolling out tanks if d people protest..They use d military to oppress d poor.. One day go be one day.

Congratulations to all the APC members and supporters of this present government, i learnt that the #302 will be sold to only those in pdp and other political parties.,To all the Apc and strong supporters of this administration, just go to any fuel station, show them your APC Identity card, they will sell it for you at 50naira per litre.
Atleast this is one of the benefits of supporting this government.
Cheers.
Buhari for third term.

Make Government no let people enter street o

Power supply is terrible

Yet you wan increase fuel price.

It does not make sense

Maxymilliano:


The committee was established last year by NEC headed by Vice-President Yemi Osinbajo to look into the dwindling revenues of states.

This evil government is always fighting the shadows of the real problems. What happens to all the borrowed monies that needed up being swallowed by snakes? Or being burnt at Jamb office, or monies awarded for ghost elephant projects that were never came to existence?

And another misfortune is trying to come back again. God forbid bad thing. Affliction shall not rise the second time

Shey this ppl mad nih

Voters don’t care, all they want is “our broda”