The Federal Government would on January 1, 2016 reduce the pump price of Premium Motor Spirit, popularly known as petrol, to N85 per litre.
The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, broke the news to journalists at the Port Harcourt Refinery Company in Port Harcourt, Rivers State, where he spent Christmas inspecting the plant.
Asked when the Federal Government would release the new price template of the Petroleum Product Pricing Regulation Agency, Kachikwu said he approved the new price for the agency on Thursday.
Pressed to reveal when the new price will become effective, Kachikwu, who is also the Group Managing Director of the Nigerian National Petroleum Corporation, said: “Like I said, we have done a modulation calculation and it is showing us below N87.
“I imagine that if PPPRA publishes it today, it will become effective immediately.
“But the 1st of January, that is when we are looking at.”
According to Kachikwu, the new price is below the current N87 per litre and it would now convince Nigerians that the pricing modulation that the Federal Government promised to embark on a few days ago was not a trick.
He noted that following government’s analysis and research, it has been realized that the country can fluctuate the fuel market in accordance with the crude oil market fundamentals.
Justifying government’s reasons for scrapping the Petroleum Support Fund, otherwise known as fuel subsidy, Kachikwu explained that government can no longer afford to subsidize the product following the fraud that has attended its operation.
He added that it has become clear that government earnings are dipping on daily basis.
His words: “It is out.
“I signed off on it yesterday (Thursday).
“I imagine that in the next couple of days, the marketers would get advice on that
Kachikwu submitted that from the application market realities for the pricing modulation, government has discovered that petrol would sell for either N85 or N86 per litre.
The minister recalled that it was from this axiom that President Muhammadu Buhari announced that the price of petrol remains N87 at the moment.
Kachikwu said: “But in applying that where we landed when we did the analysis for the very first time was about N85 or N86.
“So it is below N87.
“And maybe the first price that will come will reflect it.
“That was why Mr. President said that price will be N87 for now.
“And that is what we have in mind.”
On the security of the pipelines, Kachikwu said government had tried stopping the menace with military intervention to no avail before it engaged some private contractors who had worked with the majors for the crude pipeline management.
According to him, the private contractors have taken over Atlas Cove, Mosimi and they would be extending the surveillance to Ilorin, Kwara State.
More to come soon stay at home ..we are at home.
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