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Petrol to still sell at N87 next year, says Kachikwu

By Collins Olayinka, (Abuja) and Roseline Okere (Lagos)   |   18 December 2015   |   2:25 am  
Kachikwu

Kachikwu

• Selects 21 firms for crude oil lifting
• NLC to respond Tuesday next week

The Federal Government said yesterday that the price of Premium Motor Spirit (PMS) would remain at N87 contrary to reports that a litre of fuel would be sold at N97 from next year.

Besides, the Nigerian National Petroleum Corporation (NNPC) awarded crude lifting contract to 21 off-takers.

Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu, yesterday, dispelled insinuations in some quarters that the Federal Government has concluded plans to increase the pump price of fuel from N87 to N97 per litre as from January 2016.

Meanwhile the Nigeria Labour Congress (NLC) said it would react appropriately to the step next week Tuesday when its Central Working Committee (CWC) meets in Abuja.

NLC President, Ayuba Wabba, who disclosed this yesterday in a telephone conversation with The Guardian said, “Well, Congress will study the pronouncement and react appropriately next week Tuesday during the meeting of the Central Working Committee (CWC) of Congress.

According to Kachikwu, the discourse has long left the realm of subsidy removal to a more scientific price modulation approach which entails an elastic price mechanism regime to be reviewed periodically to reflect the prevailing international price of crude.

He explained that when operational, the novel price modulation system would place a N97 per litre cap on the price of fuel to ensure that Nigerians are insulated from the vagaries of the global crude price.

“I did not say that refined petroleum products will sell for N97 per litre next year. I said that between a band of N87 and N97 we are going to be looking at prices and today the prices are largely close to N87. So, there is no need to change the price.’’

The Minister noted that to determine the price of petroleum products in future, the Petroleum Products Pricing Regulatory Authority, PPPRA, would undertake quarterly review of the crude market situation.



  • honesty NO1

    Can someone tell the PMB to remove the subsidy. The poor people you are pretending to be subsidizing are crying out for the subsidy yoke to be REMOVED or may be most of the CABALS are in both party Nigeria is a weird STATE ! ! ! ! !

    • vic

      WE HAVE BEEN TELLING BUHARI EVERYDAY.

      AS YOU SAY, THEY HAVE SELFISH INTERESTS. THEY ARE ALL LOOTERS IN ONE FORM OR THE OTHER.

      BUHARI IS SIMPLY DUMB, DEAF AND BLIND TO MOST ISSUES OF THE DAY.

    • amador kester

      Honestly labour is among the preposterous sphinxes to watch. These demagogues that deeply detest subsidy removal are really not for the masses and i call them an anathema ruthless and demagogic. Their weird repetitive senseless arguments and stand ring like a cracked bell,sound like a broken record and smoke like the brands of a negative force-field filling the masses with despondency

      • emmanuel kalu

        labor has it power in the people. all they can do is ask their people to protest. The people need to be protesting for the removal of subsidy and for the government to invest that money in things that would actually help people. if the government use the money for mass transit or even to meter electricity customer. that would be a better use of money than allowing this cabal to continue to loot us.

      • Bonamerigo

        Did you just write the GRE or wah. That’s some upcoming patrick obaghiagbon shii

    • New Nigerian

      Your wish is already granted.

      Reuter reported:
      ABUJA, Dec 18 Nigerian state oil firm NNPC will award new crude for product swap agreements to Total, Varo Energy, Cepsa and ENI, the head of its crude marketing unit said on Friday.

      The deals, which are expected to begin in February, differ from the former “offshore processing” agreements as they are directly with refineries who can use the crude oil to produce the oil products the country needs, NNPC’s Mele Kyari told reporters.

      NNPC said there was no need to budget money for fuel subsidies in 2016, as the country can reduce the cost of imported fuel below the current retail price.

    • Prince Awele Odor

      Someone who posted as “Honesty” claimed: “The poor people you are pretending to be subsidizing are crying out for the subsidy yoke to be REMOVED”.

      This claim is ABSOLUTELY FALSE, deceptive and criminal and, hence, corrupt. Which “poor people” are “crying out for the subsidy yoke to be removed”?

      First, Why is his argument NOT on activating the refineries to make them function at full rate, and building new refineries? Why have people been demanding removal of subsidy and not activation of refineries, building of new ones, and ensuring that the function?

      Concerning Honesty’s claim, let it be known that besides the DEMAND for the removal of subsidy, there is also demand for DEREGULATION. Therefore, add the removal of fuel or petroleum subsidy to the deregulation of the cost of fuel or petroleum and tell Nigerians what you get! Interpret this under market networking dynamics.

      What will be the costs of a litre of fuel? Will it cost more or less compared to availability of subsidy? What will be the cost of basic and general items for the home, including foods clothing and electricity? What will be the cost of transportation, education, road construction and the building of hospitals? What will be medical or hospital cost, mortuary cost and burial cost?

      Are you aware that the petroleum marketers also want subsidy to be removed? Why or what does that mean or tell you?

      What are the purposes of establishing a government?

      There is really no subsidising of anything for the people. There is giving people what they have right to.

  • vic

    WHY IS PETROL STILL SELLING AT N87/LITER WHEN THE CRUDE OIL IS NOW ONE THIRD OF ITS PRICE LAST YEAR?????????
    PETROL SHOULD NOW BE SELLING AT N50/LITER NOT N87/LITER.

    WHERE ARE THE NLC AND TUC LEADERSHIPS, THEY APPEAR TO BE COLLUDING WITH THE FEDERAL GOVERNMENT AGAINST THE WELFARE OF THE POOR MASSES OF NIGERIA OR SIMPLY THEY ARE A BUNCH OF SELFISH ILLITERATES.

  • emmanuel kalu

    This is madness, just pure madness for a government that clearly doesn’t know what it is doing. first, the reality on ground is show that fuel is being sold between 100-150 per liter. so who is getting the subsidy that the government is paying. secondly, if the market is pricing fuel at 87 per liter, why is the government having to spend billions on subsidy. shouldn’t there be no subsidy because fuel is selling at market rate. what is going on is pure legal looting for Nigeria from every corner and the slow destruction of any progress that the people hoped and voted for. we need to increase price to what the market is asking and price that would eliminate subsidy. Then use that money saved to help Nigerian via things like mass transit buses, electricity meters and other things that would show immediate return.

    • New Nigerian

      Subsidy is gone in 2016 Reuters reports. Now I should hear you commend this administration for once, would you?. Take a reading:

      ABUJA, Dec 18 Nigerian state oil firm NNPC will award new crude for product swap agreements to Total, Varo Energy, Cepsa and ENI, the head of its crude marketing unit said on Friday.

      The deals, which are expected to begin in February, differ from the former “offshore processing” agreements as they are directly with refineries who can use the crude oil to produce the oil products the country needs, NNPC’s Mele Kyari told reporters.

      NNPC said there was no need to budget money for fuel subsidies in 2016, as the country can reduce the cost of imported fuel below the current retail price.

      • emmanuel kalu

        so come 2016 if they pay marketers for subsidy, what would you call that? I believe there is allocation in the budget for it.

  • honesty NO1

    Let the subsidy be removed NOW ! ! It may initially be painful but water will finds its level as time goes on. I watched on channels Tv interview of the motorists in Lagos , SS states it was suffering and the complains all over. The government should focus on revamping the refinery. The CABALS destroyed the refinery for this selfish end

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