On Wednesday the Senate slashed the allocation for petrol and kerosene subsidies presented by the Ministry of Finance in the Medium Term Expenditure Framework for 2015 – 2017.
While approving the MTEF, the Senate slashed petrol subsidy from
N200 billion to N100 billion. It also reduced the subsidy allocated to kerosene from N91.08 billion to N45.52 billion.
Chairman of the Joint Committee on Finance and National Planning; Economic Affairs and Poverty Alleviation, Senator Ahmed Makarfi, said the reduction was due to the fall in oil prices at the international market.
“The joint committee recommends a downward review of subsidy payment for PMS from
N200 billion to N100 billion and kerosene from N91.08 billion to N45.52 billion. This is as a result of the current low prices in crude oil prices at the international oil market.
“The relevant committees of the National Assembly should through oversight, ensure the full implementation of the proposed kerosene subsidy and the availability and of the product,” he said.
Makarfi also said the reduction in the subsidy allocations to petrol reflected government’s commitment to transparency and accountability in the entire oil and gas sector.
This is the first time the ministry captured allocation for kerosene subsidy in the budget. The provision may not be unconnected with ripples generated by the investigation into alleged non-remittances of some funds in the sector.