The Revenue Mobilization and Fiscal Commission (RMAFC) has said it supports the mode of subsidizing petrol being into the country by the Nigerian National Petroleum Corporation (NNPC).
The commission’s Chairman, Umar Gana, explained that passing on the subsidy which NNPC puts at N26 per litre, to consumers is not advisable.
He said “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.”
The National Assembly has summoned NNPC Chiefs and Presidency to know the source of subsiding a litre of petrol still selling at approved price of N145 per litre, despite the landing cost of N171
The Petroleum Products Major Marketers and Petroleum Products Depots Operators had called for a total deregulation of the petroleum sector to end pricing and supply crisis.