By Nneka Nwogwugwu
The Presidential Economic Advisory Council has recommended that the Federal Government remove subsidy on petrol.
The Council made this recommendations to President Muhammadu Buhari while giving its presentation at its sixth regular meeting with the President last Friday.
The council also urged FG to adopt a pricing regime that reflects the cost of the commodity.
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Buhari had in 2019 set up the council chaired by Prof Doyin Salami to replace the regime’s defunct Economic Management Team led by Vice-President Yemi Osinbajo.
The council, charged with the responsibility of advising the President on economic policy matters including fiscal analysis, economic growth and a range of internal and global economic issues working with the relevant cabinet members and heads of monetary and fiscal agencies, reports directly to Buhari.
A copy of the document was presented to the Punch and three issues were recommended to the president.
According to the document, the recommended issues include, “an urgent need for clarity and consistency in petrol pricing policy.
“Subsidy on petrol be removed and a pricing regime which reflects the cost of petrol adopted.”
It also added, “It is noteworthy that with the exception of petrol, the prices of all other petroleum products have been deregulated; the cost of retaining the subsidy outweighs the benefits, or that the benefits of removing the subsidy are far greater than the costs.
“Data published by the National Bureau of Statistics also show that petrol prices are not the same across Nigeria.
“In March 2021, petrol prices range between N162.17 and N200.87/litre –the highest being in Lagos State whilst the lowest prices are obtained in Adamawa State.
“Council is especially concerned that in addition to further worsening government revenue, re-introduction of subsidies will jeopardise investment in the oil sector and also create uncertainty about general government policy on pricing.”
