Breaking News: Fuel To Sell At N145 As FG Removes Subsidy

By Ikenga Chronicles May 12, 2016

Breaking News: Fuel To Sell At N145 As FG Removes Subsidy

The Federal Government of Nigeria has announced the removal of subsidy for Premium Motor Spirit(petrol). This was made public after a meeting at the Nigeria National Petroleum Headquarters(NNPC) on Wednesday.Petrol will consequently sell at N145 per litre as the Federal Government moves to open the market and let market forces determine price.

According to the Minister of State For Petroleum Resources the following was agreed to;

1. In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.
2. All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.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.

The Minister further clarified that;

“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.”

In 2012, after former President Goodluck Ebele Jonathan announced the removal of fuel subsidy, many Nigerians, led by key members of the present administration stormed the streets in a protest tagged #OccupyNigeria. It remains to be seen what justification some of these key members of the administration, who championed #OccupyNigeria will offer a nation of citizens already neck-deep in suffering.

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