To Get Personalised contents and be able to add items to your favourites, please Sign In or Sign Up          

Kerosene subsidy gulped N634bn in three years: Rep

News » Editorials

IMAGE: Kerosine Dealer »



The Federal Government spent N634bn to subsidise the retail price of Dual Purpose Kerosene in the past three years, the Chairman, House Committee on Petroleum (Downstream), Mr. Dakuku Peterside, said in Lagos on Thursday.

Peterside, who was the guest speaker at the 2013 seminar/luncheon of the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry, said the government spent N110bn on kerosene subsidy in 2010, N324bn in 2011and N200bn in 2012, which came up to N634bn in the three years.

He said, “In the year 2010, we spent N110,068,533,988 to subsidise kerosene. This is not the cost of kerosene but the cost of subsidising the product alone. In 2011, it got worse and the government spent N324,089,961,319 on kerosene subsidy. Although we have yet to reconcile this, we spent N200bn in subsidising kerosene in 2012.

“So, in three years, we have spent N634bn subsidising kerosene. This is one third of what we spend in a year on capital budget.”

Kerosene is supposed to be sold for N40.90k per litre, but it currently goes for between N110 and N150, depending on the location from where it is being bought.

Besides, the product is scarce at filling stations, thereby leaving Nigerians to settle for alternative sources of energy such as firewood, charcoal, sawdust, electricity and gas.

In view of this, Peterside condemned the government’s wasteful spending on kerosene subsidy when the masses could not get the product at the regulated price.

The lawmaker chided the government and the various agencies responsible for the regulation and importation of kerosene.

According to him, kerosene may continue to be scarce due to some critical factors that have eaten deep into the fabrics of the nation such as non-functional refineries, vandalism of crude pipelines, corruption and the multi-purpose usage of the product.

“As long as our refineries are not working, people will continue to benefit from the subsidy of kerosene,” he noted.

Article Credit: Punch Newspaper

Updated 5 Years ago

Find Us On Facebook

Tags:     Kerosene subsidy gulped N634bn in three years: Rep