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RMAFC backs new petrol subsidy regime

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The Revenue Mobilisation Allocation and Fiscal Commission has backed the reintroduction of subsidy on petroleum products by the Federal Government through the Nigerian National Petroleum Corporation.

The Acting Chairman, RMAFC, Mr. Umar Gana, said given that the nation was just recovering from recession, the best option was to pay subsidy on petroleum products rather than increase the pump prices.

Gana said increasing the pump price of petrol at a delicate time that the nation was recovering from recession could reverse the gains that the economy had made, adding that the best option was for the Federal Government to bear subsidy on the product.

He stated, “The commission’s position will always be a realistic one. The cost of delivery of fuel at the pump has risen because of factors of production. We may have no choice to keep the price as it is now than to subsidise.

“Subsidies like this come when it is necessary to provide the service to people at a particular time. The issue now is that we are just coming out of recession. It will probably be a wrong decision to increase the price of fuel. It will negate the recovery from recession.”

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