Effective from January 1, 2016 the pump price of petrol will be N85 per litre, the Federal Government has declared.
Although the current official price of the petrol is N87 per litre, it sells for higher prices in some states of the federation with the country experiencing over two months of biting fuel scarcity.
The Minister of State for Petroleum, Emmanuel Kachikwu, made the announcement of the reduction in pump price of the petrol at the Port Harcourt Refinery Company (PHRC), where he spent Christmas inspecting the revamped plant.
Asked when the Federal Government would release the new price template of the Petroleum Product Pricing Regulation Agency (PPPRA), the Minister 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”.
Dr. Kachikwu explained that the new price template will convince Nigerians that the pricing modulation that the Muhammadu Buhari-led 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, the Minister pointed out that government could no longer afford to subsidize the petrol following the fraud that has marred its operation.
He added that it had become clear that government earnings were dipping on daily basis.