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FG removes fuel subsidy, petrol to sell for N145 per litre

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Kachikwu

Kachikwu

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Wednesday, said any Nigerian entity is now free to import petroleum products into the country, subject to existing quality specifications and other guidelines issued by regulatory agencies.

Kachikwu pronouncement effectively ended the fuel subsidy regime.

The minister said that all Oil marketers will be allowed to import the product on the basis of foreign exchange procured from secondary sources and that PPPRA template will reflect this in the pricing of the product.

Further, Kachikwu said that new price band effective from 11th May, 2016, would put the retail price of petrol at N145 and below.

“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,” he said.

The minister explained that the decision to remove the subsidy was reached after a meeting attended by the leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions such as the Nigerian Labour Congress (NLC), Trade Union Congress (TUC), Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria(PENGASSAN).

He noted that the persistent scarcity being expressed in the country the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government.

“As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS,” Kachikwu stated.



43 Comments
  • Mizch

    Hurrah! Change has come!!! Change, Nigeria! Change Welcome. Hurrah!

    • Paul Kelvin

      change in which direction

      • Franklyn

        in whatever direction you choose. but certainly its a 180 degrees away from whatever GEJ slam on us – corruption infinitum

        • Paul Kelvin

          Really? How ignorant can u be.. last government proposed this same idea and ur present government rejected the idea. And with the harsh economic situation, I fail to see how its a 180degree change from where we were last time. And dont give me dat corruption bullshit. Cos dts d only excuse u got.

          • True Nigerian

            Nigerians are never satisfied. Subsidy is fueling speculation which is in turn causing scarcity and hardship. its also the reason why we don’t have refineries. This is a good move and anyone who really wants progress for Nigeria will acknowledge this

          • Mizch

            GEJ made the good move and it was rejected. Its maintenance produced more corruption. If allowed then, Nigeria would have settled by now.

      • Mizch

        My bro, change in any direction. It is a more permanent reality.

  • malik

    I curse all of u that voted for the government

  • malik

    Why did they reduce it b4 all buhari die hard fans go soon cry come out. Patiently waiting lol

  • Highflyer

    This is what GEJ proposed to do 5years ago. APC sponsored a huge protest to resist it. Now they ‘ve come out with the same policy. APC is indeed a party the thieves in deceit.

    • mytake

      Get your fact right…. No body sponsored anything then. Nigerian were against it because of timing and the corruption within GEJ govt.

      • Highflyer

        Ok Mr Facts, who paid the food that was freely shared at freedom park in Lagos? Who provided the music at the venue? Who paid for the diesel with which public address system was powered? If you have no contributions of your own to make please stay away from this forum

        • mytake

          You have no monopoly of this forum….. if you still have data check online what characterised #occupy Nigeria. It’s simply corruption in fuel subsidy n stop been childish

      • True Nigerian

        Please ignore this highflyer guy

      • JAY KAY

        Which fact are you talking about? The demonstration was sponsored, the timing then was much better than now, at much higher oil price it was better to deregulate. Now oil is at $40/bbl and we are deregulating to the level of N145/ltr, if oil ever gets to $100/bbl, we will be paying N500 per ltr. Keep dwelling on your sycophancy by promulgating the wishes of your paymaster but note that at the end of the day we will go to same market. DOUBLE STANDARD WILL KEEP US IN RETARDING MODE TILL WE CHANGE OUR ATTITUDE! APC CHANGE we don enter one chance.

        • yinka

          How much is gasoline in Benin, Togo and Ghana? Why do you people want to scarify the future of the country on useless subsidy. Beside, how subsidy agitators have a SUV not to talk of fleet of exotic vehicle like Saraki or Dino. Even me, I have 2 pathfinders in Nigeria courtesy of subsidy or free money . Fools, Nigeria is subsidizing the entire West Africa and beyond. Honestly, oil subsidy is just welfare package for the elites and that is why the Senators are buying V8 SUV (Gas guzzler).

          • JAY KAY

            You are missing the point, in 2002 there was plan to deregulate the market, and the same people in government today fought it and called it all sorts of name. The then President made it clear that if it is done the next government after him will not have subsidy issue to worry about but people were mobilized and the country was shut down for days. Sanusi spoke, Okonji Iweala spoke but in our characteristics way we refused to see reason because of our selfish and tribalism/religious sentiments. I advocated for and still advocate for deregulation but also advocate that “our yes should be yes and no should be No all the time time not some times”.
            Your attempt to compare price of fuel here and other countries makes no sense. The only thing we produce is oil and gas so to some extent we are supposed to have comparative advantage.
            Be it as it lets get ready for N280/Ltr if oil price gets to $80/bbl. According to Bob Marley: When Rain falls, it does not Fall in One Man’s house” We are all going to bear the brunt.

          • True Nigerian

            Dude, if the price of oil goes up and we are exporting refined products the price of gas will go down not up! You sound like a smart guy so talk smart! Nobody cares about your feelings or the past! They have removed it and it’s a good move or do you prefer we keep enriching some vagabonds? Nigeria is for all of us and we should laud whatever the Govt. does that’s a step in the right direction. Buhari has a lot of flaws but he just maybe the only president we may ever have that has the contry’s interest at heart. Don’t you think we should give him a chance and pray for him?

          • sizelpini

            How come you never mentioned this when Jonathan wanted tore move subsidy?

      • Osarumwense

        You are indeed a mistake.

        • mytake

          Only reasonable person sees things and argue it out…opposite is yours.

      • sizelpini

        What timing are u talking about? Are you saying that now there will be no impact? Please if you don’t know what to say? It is better to keep quiet.

        • mytake

          The difference between then n now is… GEJ era was because of corruption in subsidy. But now no money to continue with subsidy. I always ve something reasonable to say, just say yours!

  • Akinyemi Afeez Akintunde

    With this change, PPRA should ensure that all fuel station’s pump must work perfectly and a litre must be a liter… Any fuel station that goes against this must be dealt with severely. 145?, bring it on and lets move on only if it would take the nation to the promise land… I weep for my country, my party and my unborn child.

  • vic

    MARK MY WORDS FOR POSTERITY.

    WITH THIS NEW DEVELOPMENT PETROL WILL SELL AT N500 PER LITER VERY SOON. THIS IS CALLED LIBERALIZATION. NOW BUHARI WILL BE IN GREAT TROUBLE WITH NIGERIANS, NLC AND TUC, ASUU AND NASSU AONG OTHER TRADE UNIONS IN THE COUNTRY. WELL, THAT IS THE CHANGE BUHARI PROMISED TO NIGERIANS. TAKE IT LYING LOW.

    THIS FUEL PRICE INCREASE WILL INCREASE THE PRICE OF EVERYTHING BY 100% IN NIGERIA IF NOT MORE.

    • True Nigerian

      Please think before making unfounded comments. There is still regulation. Subsidy has just been removed. There is a standard template for importing fuel and the price can be projected. The most important thing is that this will make importation of fuel less palatable because the players are mostly speculators who feed off subsidy. If fuel is supplied from Nigeria, there is possibility of the price dropping down to even 50naira because the exchange rate will strengthen since we won’t be spending all our exchange on fuel importation.

    • emmanuel kalu

      You statement is not at all accurate. Yes the price of things might go up, but the law of demand and supply would force the prices down. moreover, by allowing anyone to import fuel, would crowd the market with product, forcing the price down. The key to this is to speed up the installation of modular refineries in the country, because that would also force the prices down. This is a very good thing for Nigeria.

    • mytake

      All parties you mentioned were involved in the final decision…. market forces will hence do the needful.

  • Basil Ogbanufe

    These are just palliatives, temporary measures with no long term effects. The price of crude oil in the international market is still about US$40 today what will happen if the price goes up?

    • emmanuel kalu

      The price would rise and fall with oil price, however there is a limit as to how much price can go up due to demand and supply laws. Now prices would be high, until we can increase local refining, which would reduce all those cost transportation and shipping. plus local refining, means that government can sell crude oil to local refineries at lower price than international price.

      • Highflyer

        Your line of thought does not take word cartel into consideration.

      • Highflyer

        Your line of thought does not take word cartel into consideration.

      • Basil Ogbanufe

        My dear brother are we refining at all as to warrant “increase in local refining”? We have been praying and are still praying that things will work well in this country. But the only way things will work well is for us to find out how it will work well and apply it. Alternatively we can continue to live in denial. Yesterday David Cameron categorized us as fantastically corrupt.

  • Objectivity View

    Without subsidy, PPPRA template is relevant to the dustbin. Government should steer clear of pricing.

  • lastborn4mom

    Then PPPRA should be scrapped to avoid irrelevant Government portfolio.

  • Musa Muhammed

    Which way Nigerians… say buhari! say change!!

  • Adetola Danmola

    Highflyer is right, all you APC heads are wrong. Let the competition reign and the market will resolve itself. Its never too late to do the right thing.

  • Mizch

    Oil subsidy was one of the areas used by the opposition (ACN, ACP, etc) to OCCUPY NIGERIA under GEJ administration. Its maintenance produced more corruption. This government is one that licks its own vomit (PMB). More changes are yet to come. After all, GEJ has gone for good.

  • land37_akanbi17

    I AM FULLY IN SUPPORT OF THE REMOVAL OF OIL SUBSIDY. NIGERIA WILL SEE SOME REMARKABLE PROGRESS IN THE NEAR FUTURE. A NEW CHANGE OF LIFE MAY CREATE UNBEARABLE PUNISHMENTS TO THE MASSES, BUT WITH TIME, ALL THINGS BEING EQUAL,THE SUFFERINGS WILL AUTOMATICALLY TURN TO SMILES. CERTAIN WEALTHY NIGERIANS HAVE MADE CHEAP MONEY FROM THE SUBSIDY OVER THE YEARS BUT WOULD LOVE THE CONTINUATION OF THE SUBSIDY FOR THEIR OWN PERSONAL GAINS. LET NIGERIANS COLLECTIVELY SHUN THE SUBSIDY AND MOVE THE ECONOMY FORWARD. IN THE UNITED STATES, THERE IS NOTHING LIKE SUBSIDY; MARKETERS ARE FREE TO SELL AT WHAT EVER PRICE IS GAINFUL TO THEM. YOU DAILY SEE VARIATION OF PRICES FROM MARKETERS RANGING FROM A SAVING OF UP TO 50 CENTS PER LITER, YOU ARE FREE TO PATRONIZE THE ONE THAT IS SUITABLE TO YOU. NIGERIA SHOULD ADOPT THE SAME METHOD AND SEE WHAT IS GOING TO HAPPEN TO LONG QUE AT THE PETROL STATIONS. THE TEMPORARY SUFFERING IS NATURAL AND IT IS DEFINITELY NOT PERMANENT. NIGERIA, ASSUREDLY, WILL BENEFIT FROM THE PLAN AND THE MASSES WILL SURELY GAIN FROM IT. NIGERIANS SHOULD PLEASE DISREGARD THE MANIPULATION OF MARKETERS BY INITIALLY CREATING ARTIFICIAL SCARCITY OF THE PRODUCT, BUT WITH TIME, COMPETITION WILL FORCE THEM TO YIELD TO THE NEED OF THE POPULACE.

  • ben

    Confused nation

  • Ayediran Opeyemi Abolade

    frm economic point of view deregulation is good if our leaders are sincere.but let wait and c

  • JAY KAY