Petrol Will Still Sell At N87 Next Year, Says Kachikwu

…Selects 21 firms for crude oil lifting
…NLC to respond Tuesday next week

The Federal Government said yesterday that the price of Premium Motor Spirit (PMS) would remain at N87 contrary to reports that a litre of fuel would be sold at N97 from next year.

Besides, the Nigerian National Petroleum Corporation (NNPC) awarded crude lifting contract to 21 off-takers.

Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu, yesterday, dispelled insinuations in some quarters that the Federal Government has concluded plans to increase the pump price of fuel from N87 to N97 per litre as from January 2016.

Meanwhile the Nigeria Labour Congress (NLC) said it would react appropriately to the step next week Tuesday when its Central Working Committee (CWC) meets in Abuja.

NLC President, Ayuba Wabba, who disclosed this yesterday in a telephone conversation with The Guardian said, “Well, Congress will study the pronouncement and react appropriately next week Tuesday during the meeting of the Central Working Committee (CWC) of Congress.

According to Kachikwu, the discourse has long left the realm of subsidy removal to a more scientific price modulation approach which entails an elastic price mechanism regime to be reviewed periodically to reflect the prevailing international price of crude.

He explained that when operational, the novel price modulation system would place a N97 per litre cap on the price of fuel to ensure that Nigerians are insulated from the vagaries of the global crude price.

“I did not say that refined petroleum products will sell for N97 per litre next year. I said that between a band of N87 and N97 we are going to be looking at prices and today the prices are largely close to N87. So, there is no need to change the price.’’

The Minister noted that to determine the price of petroleum products in future, the Petroleum Products Pricing Regulatory Authority, PPPRA, would undertake quarterly review of the crude market situation.

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