Petrol Subsidy Removal Will Not Cause Huge Inflation, Says Presidency
Petrol Subsidy : Federal government has said that proposed subsidy removal would not cause a huge spike in the inflation rate in the country.
It, however admits that the subsidy removal would bring some challenges such as increased inflation, which is natural.
Finance minister, Zainab Ahmed who gave this indication, believes that the envisaged inflation which would accompany the subsidy removal would later moderate and normalizes.
The minister, speaking on the issue while addressing newsmen on the sideline of the just concluded IMF/world bank spring meeting, said that was why the palliatives must be quickly deployed to vulnerable people.
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According to her, the assessment of the proposed subsidy removal was that the cost of PMS would not go up as being envisaged.
The minister said that Nigerians are already paying a higher price above the official pump price of petrol.
The subsidy is expected to go in June, and federal government had already obtained a $800 million grant from the world bank to provide palliatives to cushion the harsh effect of the removal of the subsidy.