FG Will Modulate Petrol Price Not Subsidy Removal

The Nigerian government says contrary to
speculations, it is not interested in the
removal of subsidy on petroleum products,
but rather a price modulation that will
reduce its involvement in pricing starting
2016.
The Minister of State for Petroleum, Dr Ibe
Kachikwu, briefed reporters of the
government’s position on Thursday.
97 Naira Per Litre Projection
Dr Kachikwu said a periodical review of the
Petroleum Pricing Template and a flexible
management of the pricing system would
be considered.
He said the review would allow marketers to
trade freely and reflect prevailing
international price of crude.
According to him, the review will be the key
focus in the first quarter of the coming year.
He said the 97 Naira per litre projection
would be a cap on the price of fuel with a
gradual increment between the band of the
current price of 87 Naira and 97 Naira until
a fair price is reached in the pricing review.
The oil-rich nation is currently grappling
with one of the worst fuel scarcity the
nation has faced in recent time, with some
service stations selling petrol higher than
the 87 Naira official price.
Some service stations have been penalised
by the regulatory agencies, but critics have
said the agency lacked the manpower to
effect adequate monitoring of the marketers
activities.