Minister of Energy and Energy Industries, Franklin Khan, says government still intends to eventually phase out the fuel subsidy.
However, he admits that there are consequences to this decision.
He explains that the government will ultimately have to go to a market driven price which changes regularly.
Responding to a question posed by Opposition Senator Taharqa Obika this afternoon, Minister Khan said that with fluctuating oil prices it is a cumbersome system to manage.
The Energy Minister also provided a breakdown of information relating to what it cost the state in fuel subsidy for super gasoline and diesel from 2016 to 2018.