The federal government on Tuesday said it plans to send an execeutive bill to the National Assembly for the amendment of the oil industry law to extend by 18-month the current fuel subsidy in the country.
According to the Minister of State for Petroleum, Timipre Sylva, the Petroleum Industry Act, which was signed by President Muhammadu Buhari last August contains a provision for the fuel subsidy to be eliminated within six months.
“It has been agreed that the implementation period for the removal of the subsidy should be extended,” said at a briefing in the State House, Abuja.
“We don’t intend to remove subsidies now. That is why I am making this announcement. We also see the legal implication. There is a six-month provision in the PIA that will expire in February and that is why we are coming out to say that before the expiration of this time, as I said earlier, we will engage the legislature.
“We believe that this will go to the legislature, we are applying for amendment of the law so that we would still be within the law.
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“We are proposing an 18-months extension but what the National Assembly is going to approve is up to them. We would approve an 18-months extension and then it is up to the National Assembly to look at it and pass the amendment as they see it,” the Junior minister said.
About a possible gradual increase in fuel prices in the coming months, he said “that is not on the table as well. Gradual or increment in whatever guise is not on the table.
“We are going to see how to rejig the law, this is not going to be the only amendment to the PIA. A few months ago, the President already proposed an amendment to the law.”
Asked if the extension has any links to the 2023 general elections, the Minister said “Of course not. This is just the human face of the Government and the President. He wants everything to be in place and he insisted that if we want to remove fuel subsidies, we must make sure we put every measure in place to protect Nigerians.
“That is the President’s insistence. We are now taking steps to ensure that these processes are in place. And this entails talking with labour. We are already talking with labour and our discussions are around palliatives and mitigations.”
