FG to reduce Fuel Price from N87 to N85 starting 1st of January 2016...

The Minister of State for Petroleum,Ibe Kachikwu when he paid a courtesy visit to Port Harcourt Refinery Company on Christmas Day told journalists that from 1st January 2016 fuel price will drop from N87 to N85. Saying that, efforts were on to get the refinery to achieve 60% production capacity and to supply about 11 million liters of Petrol daily. 

His Words...

“If you look at the new PPPRA template that we developed and which I just signed off two days ago, when it is announced you will find out that for now ,and I use the emphatic word of the President for now, the price of the refined product will actually be lower than 87 naira, It will be 85. We will probably announce that in January if the prices hold.

“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.”

“What that does for you is that its modulating. If it goes up you move up, if it comes down you come down. So we take away the fact of having to go find funds to pay for these subsidies that we cannot afford.

“More importantly we try to be as close to the pump price that we have now as possible,” he said.

“So for the first time people will understand that the pricing modulation I was talking about is not a gimmick. It is for real. The objective is that 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 “, he said.

 He also said there was improvement in security of pipelines with the engagement of private  contractors by the federal government.