The Federal Government has said that it lacked funds to subsidize the cost of PMS.
This was disclosed by the Minister of State for Petroleum Resources, Chief Timipre Sylva, on Thursday, while addressing newsmen men in Abuja.
The minister disclosed that since the introduction of the deregulation policy, the country has saved about N1 trillion.
Sylva further disclosed that the Federal Government has concluded plans to merge the Petroleum Products Pricing Regulatory Agency, PPPRA, and the Petroleum Equalisation Fund, PEF, into one agency called The Authority.
He assured Nigerians that the government was working hard to address the concerns in the downstream oil and gas sector.
He said the government had stepped back in terms of price-fixing for petrol, adding that market forces and crude oil price would continue to determine the cost of PMS.