A committee set up by the NGF has recommended a petrol price of between N408.5 per litre and N380 per litre. It called for immediate removal of fuel subsidy.
El-Rufai, who is the chairman of the committee, explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neigbouring African countries were the beneficiaries.
The committee recommended that the removal of subsidies should be immediate to save the nation’s economy.
He noted that Nigeria, like other Organisation of the Petroleum Exporting Countries member countries, agreed to a cut production to keep the prices high but that Nigeria could not fully benefit from the regime because of subsidies.
The Kaduna governor said, “Between N70bn and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre, this is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist.
“We are already at zero. I understand for tomorrow, so this scenario has occurred.
“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.