FG to Cut Petrol Subsidy by Half; Fuel May Sell for N145 Per Litre

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okonjo iweala

The Federal Govt. says it will be cutting subsidies on Petroleum products by half next year, following the sharp fall in global crude prices.

President Jonathan has submitted the revised budget figures to lawmakers last week. In the budget, he proposed to spend 458.68 billion ($2.59 bln) on petrol subsidy in 2015, down from 971.14 billion naira presented from 2014.

According to Vanguard, the Minister of finance and Co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala has proposed lowering the assumed benchmark oil price for the 2015 budget to $73 per barrel from the $78 proposed in September, after global crude prices collapsed.

Ngozi Okonjo-Iweala told Reuters last week that declines in the price of oil, which has lost almost 30 percent since July, would impact the economy, requiring the government to cut non-essential spending and raise more revenues.

Recall that the FG tried to end subsidy in 2012 in efforts to cut government spending and encourage badly needed investment in local refining, doubling the price of a litre of petrol overnight to about 150 naira ($0.93) from about 65 naira.

Source: http://www.nigerianbulletin.com/threads/fg-to-cut-petrol-subsidy-by-half-fuel-may-sell-for-n145-per-litre.101186/

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