NNPC Says No Fresh Petroleum Subsidy In 2016

The Nigerian National Petroleum
Corporation believes there will be no fresh
subsidy in the 2016 budget.
At a media interaction in Abuja, the Group
General Manager, Corporate Planning, Mr
Bello Rabiu, explained that a new framework
was being worked on for the management
of subsidy on petrol.
Mr Rabiu said that the new template would
eliminate subsidy in the next few months,
leaving the price of petrol at a capped price
of 97 Naira.
He, however, insisted that the 2016 budget
would only capture arrears of subsidy
payments.
Petrol Price Modulation
On Thursday, the Minister of State for
Petroleum, Dr Ibe Kachikwu, told reporters
that contrary to speculations, the
government was not interested in the
removal of subsidy on petroleum products,
but that a price modulation that would
reduce its involvement in pricing starting
2016 would be introduced.
The Minister of State for Petroleum, Dr Ibe
Kachikwu, briefed reporters of the
government’s position on Thursday.
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.
At the moment, the nation is facing
shortage of petrol, with queues seen at
different service stations across the oil-rich
nation.