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The federal government has postponed the planned petrol subsidy removal till further notice due to “high inflation and economic hardship”.
Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.
The government had planned to stop subsidy payments on petroleum products from July this year.
Zainab Ahmed, minister of finance, budget, national planning, disclosed this on Monday in Abuja at a meeting with Senate President Ahmad Lawan.
The meeting had Timipre Sylva, minister of state for petroleum resources; representatives of oil companies, among others, in attendance.
Last week, Lawal had said Buhari did not direct the removal of petrol subsidy, saying their “constituents are raising concerns over the policy”.
The National Economic Council (NEC) said it is still considering the recommendations — which proposed full deregulation and N302 per litre for PMS.
Ahmed said petrol subsidy was provided for in the 2022 budget to run from January till June.
She, however, said that after consultations with stakeholders — in view of the high inflation and economic hardship — additional provisions would be made beyond the initial period.
