The Minister of State for Petroleum, Dr. Ibe Kachikwu, says the Nigerian government has suspended payment of subsidy on petroleum products as at December 27. This he said, was as a result of the current low price of crude in the international market. According to the minister, who spoke to reporters in Kaduna on Sunday, the non-payment of subsidy would remain the same, as long as market trends allow.
The minister said, if crude prices increase, there would be a review which would be tackled under the newly introduced price modulation in the sector. According to him, the price modulation is not an outright removal of petrol subsidy. The price modulation, the government had said, would be predicated on a 97 Naira per litre projection, which would be a cap on the price of fuel with a gradual increment between the band of the current price of 87 Naira and 97 Naira until a fair price is reached in the pricing review.