…Cuts Down PMS Pump Price Below N87 Per Litre
…as Motorists Pay Over N130 Per Litre Across The Country
[dropcap]T[/dropcap]o ensure that fuel pump price in Nigeria reflects the crumbled world crude oil prices, the Federal government has resolved to, from January 2016, stop payment of fuel subsidy to marketers and still ensure that Nigerian motorists buy petrol at pump price set below the current official price of N87 per litre.
The Minister of State for Petroleum, Dr. Ibe Kachikwu, gave the indication, while taking a tour of the Port Harcourt Refinery on Christmas Day.
According to him, the current world crude oil price, which is below $40 per barrel, makes it inevitable for the Federal government to end the subsidy payment in Nigeria, adding that new lower pump price to be announced in January will be in accordance with a Petroleum Product Pricing Agency (PPPRA) template, put in place to ensure that pump price of petrol in Nigeria reflects the realities of the crude oil market.
Dr. Kachikwu affirmed that the said PPPRA template, which he signed off on Wednesday 23rd December 2015, would be the first reflection of the price modulation that will kick off fully in the petroleum sector by January.
“It is out,” he pointed out. “I signed off on it. I imagined that in the next couple of days, marketers would get advice on that. The nice thing about the PPPRA, is that the price will be far below N87 per litre.
“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.”
Kachikwu said analysis and research had indicated that Nigeria can fluctuate the fuel market price in accordance with the crude oil market fundamentals.
It would be recalled that the federal government recently made a payment amounting to trillions of Naira to oil marketing companies, being petrol support fund otherwise known as subsidy. Despite that, Nigerian motorists in most part of the country pay pump price ranging between N130 and N160 per litre.
As monitored by Motoring World Correspondent at the weekend (Saturday after Christmas), while most filling stations were not selling fuel, few ones selling were using calculator to sell to motorists and motorcyclists at prices far above N100 per litre. For instance, while Demfab Petroleum located at the old garage and Olokemeji filling station along federal Poly Road, Ado-Ekiti, Ekiti State capital sold petrol at N140 per litre, Post Option Nigeria Limited filling station located along Federal Poly Road sold to motorists at N130 per litre.
Also most filling stations selling fuel inside Ibadan, Oyo State capital also sold at prices ranging between N100 and N130 per litre.
However, in Lagos State, most filling stations located at the heart of the city from Ikeja to Ikorodu Road, Lagos Island, Victoria Island and Lekki have not only been selling fuel to motorists at N87 per litre, they also maintain the Federal government ban on sale of petrol into jerry Cans.
Whereas, as at the time of putting this story together, motorists and black market fuel sellers were still buying fuel into jerry cans in most states of the federation apart from Lagos and Abuja.