NEWS UPDATE - FG finally removes petrol subsidy, now N145 per litre... - GOLDENPARROT

    The Federal government of Nigeria has finally pulled the plug on its subsidizing of petrol by literally deregulation the sector entirely, causing an immediate leap, rising from N86 per litre to N145 per litre. With the new development, marketers are free to import products and sell but not more than N145 per litre, the government said.
Minister of State for Petroleum Resources Dr. Ibe Kachikwu who broke the news said that: .





“Following a detailed presentation by the honorable minister of state for Petroleum Resources, it has now become obvious that the only option and course of action now open to the government is to take the following decisions:

“In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.

“All oil marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.

“Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.

“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel.

“In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.”