Government has finally removed subsidy from sale of Premium Motor Spirit,<\/p>\n
PMS, also known as petrol with immediate effect.<\/p>\n
Minister of State for Petroleum, Mr. Ibe Kachikwu, Wednesday, defended the
\njerking up of pump price of Premium Motor Spirit, PMS, also known as fuel
\nby the federal government from N86:50 to N145, saying that it was the only
\nway out of the exorbitant prices of N150 to N250 Nigerians were subjected
\nto at many filling stations across the country.<\/p>\n
He however stated that government had articulated many social protection
\nprogrammes in the 2016 budget to cushion the effect the hike may have on
\nNigerians.<\/p>\n
Rising from a meeting chaired by Vice President, Yemi Osinabjo which also
\nhad other various stakeholders including the Leadership of the Senate,
\nHouse of Representatives, Nigerian Governors Forum, and Labour Unions
\n(NLC, TUC, NUPENG, and PENGASSAN), at the Aguda House, official residence
\nof the Vice President, Kachikwu noted that \u201cthe reason for the current
\nproblem is the inability of importers of petroleum products to source
\nforeign exchange at the official rate due to the massive decline of
\nforeign exchange earnings of the federal government.<\/p>\n
As a result, private marketers have been unable to meet their approximate
\n50% portion of total national supply of PMS.\u201d
\nThe minister who briefed the State House Correspondents on the resolution
\nof the meeting said that to wet the country with fuel, any Nigerian entity
\nwas now free to import the product, subject to existing quality
\nspecifications and other guidelines issued by Regulatory Agencies. \u201cWe
\nhave just finished a meeting of various stakeholders presided over by His
\nExcellency, the Vice President of the Federal Republic of Nigeria.<\/p>\n
\u201cThe meeting had in attendance the Leadership of the Senate, House of
\nRepresentatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and
\nPENGASSAN). The meeting reviewed: \u201cThe current fuel scarcity and supply
\ndifficulties in the country. \u201cThe exorbitant prices being paid by
\nNigerians for the product. These prices range on the average from N150 to
\nN250 per litre currently.<\/p>\n
\u201cThe meeting also noted that the main reason for the current problem is
\nthe inability of importers of petroleum products to source foreign
\nexchange at the official rate due to the massive decline of foreign
\nexchange earnings of the federal government. As a result, private
\nmarketers have been unable to meet their approximate 50% portion of total
\nnational supply of PMS.<\/p>\n
\u201cFollowing a detailed presentation by the Honorable Minister of State for
\nPetroleum Resources, it has now become obvious that the only option and
\ncourse of action now open to the government is to take the following
\ndecisions: \u201cIn order to increase and stabilise the supply of the product,
\nany Nigerian entity is now free to import the product, subject to existing
\nquality specifications and other guidelines issued by Regulatory Agencies.<\/p>\n
\u201cAll Oil Marketers will be allowed to import PMS on the basis of FOREX
\nprocured from secondary sources and accordingly PPPRA template will
\nreflect this in the pricing of the product. \u201cPursuant to this, PPPRA has
\ninformed me that it will be announcing a new price band effective today,
\n11th May, 2016 and that the new price for PMS will not be above N145 per
\nlitre.<\/p>\n
“We expect that this new policy will lead to improved supply and
\ncompetition and eventually drive down pump prices, as we have experienced
\nwith diesel. In addition, this will also lead to increased product
\navailability and encourage investments in refineries and other parts of
\nthe downstream sector. It will also prevent diversion of petroleum
\nproducts and set a stable environment for the downstream sector in
\nNigeria.<\/p>\n
\u201cWe share the pains of Nigerians but, as we have constantly said, the
\ninherited difficulties of the past and the challenges of the current times
\nimply that we must take difficult decisions on these sorts of critical
\nnational issues. Along with this decision, the federal government has in
\nthe 2016 budget made an unprecedented social protection provision to
\ncushion the current challenges.<\/p>\n
\u201cWe believe in the long term, that improved supply and competition will
\ndrive down prices. The DPR and PPPRA have been mandated to ensure strict
\nregulatory compliance including dealing decisively with anyone involved in
\nhoarding petroleum products.\u201d<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Government has finally removed subsidy from sale of Premium Motor Spirit, PMS, also known as petrol with immediate effect. Minister of State for Petroleum, Mr. Ibe Kachikwu, Wednesday, defended the…<\/p>\n","protected":false},"author":1,"featured_media":49192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17,5],"tags":[],"class_list":["post-49190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive","category-news"],"yoast_head":"\n