BREAKING NEWS: FG removes fuel subsidy, petrol to sell for N145 per litre
https://37bloggers.blogspot.com/2016/05/breaking-news-fg-removes-fuel-subsidy.html
FG removes fuel subsidy, petrol to sell for N145 per litre
The
Minister of State for Petroleum Resources, Ibe Kachikwu, on Wednesday,
said any Nigerian entity is now free to import petroleum products into
the country, subject to existing quality specifications and other
guidelines issued by regulatory agencies.
Kachikwu pronouncement effectively ended the fuel subsidy regime.
The
minister said that all Oil marketers will be allowed to import the
product on the basis of foreign exchange procured from secondary sources
and that PPPRA template will reflect this in the pricing of the
product.
Further,
Kachikwu said that new price band effective from 11th May, 2016, would
put the retail price of petrol at N145 and below.
“Pursuant
to this, PPPRA has informed me that it will be announcing a new price
band effective today, 11th May, 2016 and that the new price for PMS will
not be above N145 per litre,” he said.
The
minister explained that the decision to remove the subsidy was reached
after a meeting attended by the leadership of the Senate, House of
Representatives, Governors Forum, and Labour Unions such as the Nigerian
Labour Congress (NLC), Trade Union Congress (TUC), Nigeria Union of
Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas
Senior Staff Association of Nigeria(PENGASSAN).
He
noted that the persistent scarcity being expressed in the country the
inability of importers of petroleum products to source foreign exchange
at the official rate due to the massive decline of foreign exchange
earnings of the federal government.
“As
a result, private marketers have been unable to meet their approximate
50% portion of total national supply of PMS,” Kachikwu stated.