The Government would on January 1 next year reduce the pump price of the Premium Motor Spirit (PMS) to N85 per litre.

The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu broke the news to journalists in the Port Hacourt Refinery Company (PHRC), where he spent Christmas inspecting the plant.

Asked when would the Federal Government release the new price temperate of the Petroleum Product Pricing Regulation Agency (PPPRA), he said that 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 (NNPC) 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 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 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 oil 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 imagined that in the next couple of days the marketers would get advice on that. The nice thing about the PPPRA, where I signed up on it yesterday is that the price will be far below N87.

So for the first time people will understand that the pricing modulation I was talking about is not a gimmick. It is for real. We have gone to find out how we will be able fluctuate this market to reflect what the reality of crude market is. The objective is that one, we cannot afford to continue to subsidize .

We can't even understand where those subsidies were going to. There is a lot of fraud elements in it so we need to cut that of.

The second is the earning capacity of the Federal Government is deteriorating by the day with lower prices of crude and come out more."
He submitted that from the application market realities for the pricing modulation, government has discoverd 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 prices will be N87 for now. And that is what we have in mind."

On the security of the pipelines, he said that 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 between yesterday and today.

They will also look at the Port Harcourt and Aba axis, he stressed.
The minister said that government is now beginning to have a clue of how to tackle pipeline insecurity, adding that it is far more expensive to convey petroleum and products through pipelines than trucking them by road.
He said from the briefing he got from the inspection of the refineries , they are close to re-opening.

"In the next one week, we are ready to see products out of here", he disclosed.

Kachikwu said that a lot of the rehabilitation of the refinery was being done with intensive manual labour of the staff since paucity of fund affected the holistic change that is required in the factory.

He said that the refinery is now aging so one fault comes up after the other even after repair but that would stop when government repairs the plant holistically early next year.

According to him, about 5.5million litres daily of PMS is expected from the refinery in the next few days. Other products to come from the plants, said Kachikwu "are AGO, Kero and others. Where we love to be is to have half of the consumption of this country at the refineries at the minimum, which is about 20million litres. But where we are with the sleepless night I have had in the last few weeks any molecule is significant.

Kaduna will still be doing 2.3million. Let's start from there. And that is doing 60 per cent performance. This is still an assumption. I will like to see them getting closer to 80 or 90. By the time they time they do that we will be getting 11 to 12million litres out of this place."

http://saharareporters.com/2015/12/25/nigerian-government-reduce-price-petrol-n85-litre-jan-1-2016

Change

New Year message loading........

Although we are working to diversify our economy, we will not lose sight of the need to restructure the oil and gas sector which has been marred by corruption and plagued with inefficiencies. Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components. We believe this can lower input costs and attain efficiency savings that will enable PPPRA to keep the selling price for all marketers of petrol at N87 per liter for now.

The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.

With APC, NIGERIA is now in the hands of robbery gangs.

Let me leave my comment for the poser below me.

Where we love to be is to have half of the consumption of this country at the refineries at the minimum, which is about 20million litres. But where we are with the sleepless night I have had in the last few weeks any molecule is significant.

If the refineries can meet this target, the NNPC doesn't need independent marketers to import anymore. Some saboteurs will go all out to make sure that the NNPC doesn't become the sole importer of petroleum products.

I hope Kachikwu succeeds.

At enugu it's 50 naira.buhari naa slow poke

On the security of the pipelines, he said that 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 between yesterday and today.

Who are these private contractors? Is the Nigerian Navy and NSCDC inadequate to monitor and secure the pipelines? Abi una don give these militants food again?

No go fall our hands o Hon Minister

K

ok

Let's hope the products will be readily available afterwards.

Dem don give militants jare

aieromon:


Who are these private contractors? Is the Nigerian Navy and NSCDC inadequate to monitor and secure the pipelines? Abi una don give these militants food again?

pls what is the difference between 87 n 86 abi 85naira?
if its 86 if I walk into any filling station to buy 1litre will there be 4 naira change for me?
why these people they ride on our intelligence like dis?
the last article saharareporters did concerning kd refinery, they said the refinery was running at 80percent capacity refining 3.3million litres of diesel everyday, now ibe dey speculate its shud be running at 60percent, who these lies dey help sef?
chai.....

The govt had just told us that they couldn't withstand the millitants. Good they own up on time.

IbokUtoroh:
pls what is the difference between 87 n 86 abi 85naira?
if its 86 if I walk into any filling station to buy 1litre will there be 4 naira change for me?
why these people they ride on our intelligence like dis?
the last article saharareporters did concerning kd refinery, they said the refinery was running at 80percent capacity refining 3.3million litres of diesel everyday, now ibe dey speculate its shud be running at 60percent, who these lies dey help sef?
chai.....

You don't buy fuel...if you do,you won't ask this question...Because pumps are design to dispense gas in litres or amount. ..in other words... people most times buy round figures to avoid getting "Change" wahala

adioolayi:

You don't buy fuel...if you do,you won't ask this question

I raised like 3 issues, if u cant take the three of it then u dont have to reply.

IbokUtoroh:
pls what is the difference between 87 n 86 abi 85naira?
if its 86 if I walk into any filling station to buy 1litre will there be 4 naira change for me?
why these people they ride on our intelligence like dis?
the last article saharareporters did concerning kd refinery, they said the refinery was running at 80percent capacity refining 3.3million litres of diesel everyday, now ibe dey speculate its shud be running at 60percent, who these lies dey help sef?
chai.....

First of all, according to the minister, subsidy has been removed, and even at that, PMS price hasn't been increased. Rather, it'll be decreased effective January 1st. The fear has always been a situation whereby, subsidy is removed and, in turn, PMS is increased. Now, we have been assured that it's not going to be so. So, what are you wailing about?

For the 80%, 3.3million litres per day claim by SR, you'll have to post the link to that article, because i can't remember coming across such article.

The key issue the government needs to address is product availability and not necessarily pricing.

Upon subsidy removal, only NNPC will sell at the government-set price of N86 or N85 while marketers sell at any rate they wish BUT how many Nigerians will be willing/have the time to go queue up for 2-3days just to get PMS from NNPC stations?

An under-supplied product can never sell at a low price no matter how much the government tries to influence prices.

If we experience this amount of hardship when the supply quota ratio is 52:48 one wonders what will happen if marketers make good their threat to completely withdraw from the arrangement if terms don't improve.

Honestly, except the government focuses on sufficient supply, all I see is PMS selling at an even higher rate than Nigerians currently buy.

I hope say after like 2 months wey dem done make do with subsidy the pump price no go suddenly jump up

dustmalik:

First of all, according to the minister, subsidy has been removed, and even at that, PMS price hasn't been increased. Rather, it'll be decreased effective January 1st. The fear has always been a situation whereby, subsidy is removed and, in turn, PMS is increased. Now, we have been assured that it's not going to be so. So, what are you wailing about?

For the 80%, 3.3million litres per day claim by SR, you'll have to post the link to that article, because i can't remember coming across such article.

the cost of bringing pms now to nigeria is 65 naira or thereabout, so why is it at 86naira?
the 21naira difference is for what?
dont forget the price of refined products is proportional to the cost of crude oil, crude is 32dolls per barrel, so why is pms still on d high side even with d subsidy removal?
what did tam david west said abt price of petrol n subsidy wen buhari comes in, why r we not seeing the dramatic change?

Who is talking about pump price?

We are talking about AVAILABILTY

The 2naira reduction will be meaningless if it remains unavailable.