Petrol subsidy: N1.59trn spent in six months, policy no longer sustainable – Buhari

President Muhammadu Buhari has disclosed that billions of naira being paid as petroleum subsidy over the years has been controversial and no longer sustainable.

He disclosed this while delivering his speech during the laying of the 2023 budget proposal before the joint National Assembly sitting on Friday.

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He said, “Petrol subsidy has been a recurring and controversial public policy issue in our country since the early 80’s. However, its current fiscal impact has clearly shown that the policy is unsustainable.

“As a country, we must now confront this issue taking cognizance of the need to provide safety nets to cushion the attendant effects on some segments of society.”

Giving an overview of the 2022 budget, the president disclosed that, oil output stood at an average of 1.30 million barrels per day as at June 2022, while the sum of N1.59 trillion was spent on fuel subsidy between January and June 2022.