Wednesday, May 11, 2016

Breaking News:FG removes fuel Subsidy

Minister for  State Of Petroleum 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.


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