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. Whereever you go outside Lagos and Abuja, fuel is hardly sold for N97 per litre. Civil society organisations 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.

Maku, who spoke while briefing the media on the achievements of the Federal Government for 2012, said petrol could hardly be bought at the control price of N97 per litre outside Lagos and the Federal Capital Territory.

The minister said civil society organisations needed to rise up against exploitation by dealers in petroleum products, arguing that the government could not be at every filling station across the country. He said the people needed to ask questions on why they cannot buy fuel at the control price.

Despite the abuses in the system, Maku said the government would retain the subsidy regime because that was what the people wanted.

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.'