The Nigerian Government has promised to reduce the pump price of the Premium Motor Spirit otherwise known as petrol from N87 to N85 per litre come January 1, 2016.
The Minister of State for Petroleum, Mr. Emmanuel Kachikwu, disclosed
this to journalists yesterday at the Port Harcourt Refinery Company, where
he went to inspect the plant.
Asked when the Federal Government would release the new price
template of the Petroleum Product Pricing Regulation Agency (PPPRA), Mr.
Kachikwu said he approved the new price for the agency on Thursday.
“Like I said, we have done a modulation calculation and it is showing
us below N87,” Mr. Kachikwu said. “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 him, 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 analyses and research, government realized
the country could fluctuate fuel price in accordance with the crude oil
market fundamentals.
Justifying government’s reasons for scrapping the Petroleum Support
Fund otherwise known as oil subsidy, Mr. Kachikwu explained that
government could no longer afford to subsidize the product following the
fraud that has attended its operation.
He added that it had become clear that government earnings were dipping on daily basis.
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