FG removes fuel subsidy, says petrol to sell for N85 by Jan 1st 2016

Minister of State for Petroleum , Dr Ibe Kachikwu
during a tour of the Port Harcourt refinery on
Christmas Day said that the Federal
government is working to reduce the pump price
of petrol to about 85 or 86 naira per litre by Jan
1st.
He said efforts were on to get the refinery to
achieve 60 percent production capacity and to
supply about 11 million liters of petrol daily.
“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.