Why Fuel Subsidy Is Not Working – FG


The Federal Government on Monday said payment of subsidy on local consumption of petroleum products was not working because it was subject to abuses.

“The system (fuel subsidy) will not work because there is so much room for abuse. Where ever you go outside Lagos and Abuja, fuel is hardly sold for N97 per litre. Civil society organizations are not speaking against this. They only attack the government. Government cannot be at all filling stations,” Minister of Information, Mr. Labaran Maku, said in Abuja.

The declaration by the minister came barely hours after media reports of a suit in which a chieftain of the Peoples Democratic Party in Anambra State, Chief Stanley Okeke, asked a Federal High Court to compel President Goodluck to totally remove subsidy on fuel.

Mr. Maku, who spoke while briefing the media on the achievements of the Federal Government for 2012, lamented the unavailability of premium motor spirit at the control price of N97 per litre outside Lagos and the Federal Capital Territory.

The minister called on civil society organizations to rise up against the exploitation of Nigerians by dealers in petroleum products, arguing that the government could not be at every filling station across the country.

He also urged Nigerians to ask questions on why they cannot buy fuel at the control price.

However, despite the abuses in the system, Maku reiterated government’s continuation of the subsidy regime because it was the wish of the people.

He said, “Government has paid subsidy for every litre of fuel sold in this country but dealers are selling above the regulated price. We have not deregulated fuel pump prices. For every price above N97 per litre, Nigerians are paying twice.

“People are profiteering from the system and it is wrong. Nigerians should have mercy on Nigerians. We are retaining the subsidy because that is what people want now.”


    • Removing subsidy will not make the price uniform. No free market goods have uniform price tags. This gives room for competition, bargaining and choice which leads to price reduction.
      Thats the beauty of free market economy.
      Removal of subsidy is what will eliminate the abuse in the system and free resources for the development of this country.
      I am always amazed how no critic ever takes up these marketers who are double dealing Nigerians.
      The price of food, clothing, telecoms, crude oil, gas and every other are not regulated and subsidised, why insist on PMS only?

  1. Sir, its ur legitimate duty (political elite) to control the market price of Petroleum product, the very authority assign to do this very work is under ur control, so, pls stop all this propaganda, is not going to help, sir remember we give you people our mandate, the contract between us,(populace and government) you failed, nigeria is a fail state, our leaders fail us, nigeria is now commercial capitalist state, only the multi national companies(white men) domestic and comprador bourgeoisie(our political leaders) are the beneficiaries of our national endowment, the rich is getting richer and the poor is getting poorer, pls stop all this and face the reality…..

  2. C’mon Maku! Who is the govt dat cant be in all filling stationsat a tym? What happened 2 d agency that is supposed to monitor d happenings in d filling stations? Or are u ignorant about them as an information minister? Or u think nigerians are fools and do not know. Just admit that ur principal has lost control of this country and every one is doing his own thing witout a care in dis world. 2015 pls come soon!!!

  3. Just as a commentator rightly pointed out. Pls and pls stop insulting d awareness level of Nigerian. We know very clearly d responsibilities of DPR , PPMC and PEF. Pls and pls follow the rightful channels, investigate the saboteurs of d product distribution supply chain. And let this madness in the oil sector come to an end.

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    • i see no reason 4 this propaganda of mr. information minister. u’d better stop deceiving nigerians cos we ar quite informed and aware of every happenings in this country -the giant of africa in corruption per excellence. if govt cant be at all filling stations at a time, then what are the duties of the constituted agencies? Nigeria govts-FG, SG and LG ar failures and dissapointments cos of selfishness. we know how much u book for urselves and how much u prepare for nigeria workers. God will ask u. think of hell fire and repent.

  5. The opposition to the removal of subsidy by a vocal section of Nigerians, is a classic case of one cutting his nose to spite his face.
    We have seen that about 90% of the target consumers do not benefit from the subsidised products, yet we still insist on this collosal wastage of public funds just to rubbish the president.
    Those Fed govt gave licences to build refineries prefer to go to neighbouring free economies to build, only for us to go there, buy at market price and subsidise!
    Subsidy on pms must go. Haba.

  6. Jonatan…jonatan…jonatan how many times did i call you if you want ur name in gold plz remove subsidy…d pains may last for a while but d gains will be forever…by midle of february plz remove dat rubish called subsidy which has no impact to d society nd its pple but only d rich who ar stealin frm it

  7. There must b a solution to every problem dt rises. D way foward is impotant. Masses re crying but is not getting 2d top as it should be. It is wat u do dt pple we say abt u. Wen u re no more in offices… He who laugh last laugh best they say… But dt is d past… Now he who laugh on oders sweat wrongly, he will laugh but laugh bitterly at d end.
    A sinner will never go on punished