11 May 2016 | PRESS STATEMENT ON CURRENT FUEL SITUATION IN NIGERIA

We have just finished a meeting of various stakeholders presided over by His Excellency, the Vice President of the Federal Republic of Nigeria.

The meeting had in attendance the Leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN).

The meeting reviewed:

1. The current fuel scarcity and supply difficulties in the country.

2. The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently.

3. The meeting also noted that the main reason for the current problem is 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.

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:

1. 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.

2. 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.

We share the pains of Nigerians but, as we have constantly said, the inherited difficulties of the past and the challenges of the current times imply that we must take difficult decisions on these sorts of critical national issues. Along with this decision, the federal government has in the 2016 budget made an unprecedented social protection provision to cushion the current challenges.

We believe in the long term, that improved supply and competition will drive down prices.

The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products.

Thank you.
SIGNED

HONOURABLE MINISTER OF STATE FOR PETROLEUM RESOURCES

https://m.facebook.com/story.php?story_fbid=473905869466814&substory_index=0&id=448436902013711&refid=17&_ft_=top_level_post_id.473905869466814%3Atl_objid.473905869466814%3Athid.448436902013711%3A306061129499414%3A69%3A0%3A1464764399%3A-4871739331966776313&__tn__=%2As

Hmmmmm




Ka sha ma Dupe
I think Kachikwu and PMB are very smart. They make petrol scarce for one year then remove subsidy so, we are too tired to complain.

The statement was well worded. It was a euphemic way of announcing the removal of fuel subsidy. It is so disheartening that we would have long gone past this if today's proponents of subsidy removal had not opposed the policy four years ago. I hope Nigerians can see clearly how they were fed lies to stir up their anger against Jonathan.
It is the way to go, but Nigerians need to ask those who came up with the policy why they resisted the removal four years ago.
The APC must apologize to Nigerians, particularly families of those who lost their lives during the subsidy protests. It is the only way of showing contrition for misleading millions of people.

Hmm, tot APC criticized GEJ for this. Just asking

Na how many times this administration wan remove subsidy?

Sai Buhari

so this is the 40 naira per litre u people promised us

What has Nigerians done to deserve this kwanuuu? We warned you guys never to vote in this government but you gus refused. Now see what you people have done?

Mynd44 you dey form nairaland police abi

Tolexander:
Na how many times this administration wan remove subsidy?

LOL!!! As many times as they can!

On a normal day, people like Gbawe would have written epistles on why GEJ is very wicked, heartless for not being honest with the citizens. I wonder what he will say now!

This government is finished!

chai!

I have not seen a shameless country such Nigeria before!

**Spites on Nigeria**

Keneking:
Sai Buhari

Your zombiesm has no cure

I don't believe in APC government again

cckris:
PDP is far better than APC

And what makes one better than the other?

The differences between PDP and APC are similar.

Same bread, different label.

How much will NNPC be selling a litre? Are we going to buy locally refined fuel from government refineries for 145 naira?

I don't know what is fuel subsidy - Buhari.

My primary concern is exchange rate which Will eventually spike to above 400naira/$ in few weeks.

Worst part is that my salary will not be increased

This government has betrayed Nigerians fulltime.

Spit on APC

The scam by this fiendish APC govt has become so humongous and legendary that they themselves can't even pretend about it again. I have always been a strong advocate of total subsidy removal cos I am convinced DAT in d end d interplay of demand and supply will stabilize prices cum availability and eventually drive investors in d direction of building refineries in Nigeria. It is painful DAT GEJ who saw this 4yrs ago was hounded, vilified and called unprintable names by this same actors who argued then that subsidy removal can only come up after refineries have started working at full capacity. These gladiators promised PMS cud sell at 40naira if voted in. A 67% increment (from 86.50 to 145 Naira per litre) can only come from an insensitive govt with a medieval economic mindset. Gej promised DAT with subsidy removal then when crude was above $100 we can buy PMS at 140 naira per litre so how come with crude less than $40 we are to be getting same product at 145naira. It is a universally known fact that when d cost of raw material is cheap (in this case d crude oil) , d tantamount price of d finished product will equally be more affordable. The most annoying part is DAT all those loquacious right activists have all activated their mute buttons, d state agents are intolerable to lawful protests and d zombies are congenitally fanatical. The govt is equally truthful by half cos u can't determine d selling price of a product when d marketers sourced their Forex as PMB can never stabilize d price of d dollar so this 145Naira upper threshold can't be sustained. The best d govt wud have done was to sell Forex to mkters @ official exchange rate and strictly monitor DAT it was used for payment of d exact qty of PMS being imported. Gej irked Nigerians with his new Yr 2012 broadcast but in this case d President never found us worthy of his state broadcast as his junior Minister has issued d fiat thru press statement on a day he is far away in d UK. Such a natnl policy direction?. When all d the critics of this wicked govt with intransigent spirit were being persecuted some were happy but now we know why.

chikel2000:
Hmm, tot APC criticized GEJ for this. Just asking

APC was not in existence then. It was NLC

Buhari is Dullarpo-de-Santos!!

This govt is very insensitive to the plight of the suffering masses

*singing which way nigeria which way nigeria I want to know* PMS now at #145.. Transportation costs will rise, cost of food stuffs will rise, cost of products/services will rise. salaries will remain the same for some and for other coys downsizing will be the way out to cut the eventual rise in operating/production cost
Once again *singing which way nigeria which way nigeria I want to know*
APC = PDP - same wine different bottle

The removal of subsidies of any kind is always a smart economic move. We must not be short-sighted, and give in to the pull of immediate gratification.

This is definitely one chance government


So what's good for the goose is not good for the gander?

APC can copy for Africa!!!
Copy Jonathan's ideas finish!
But bad at implementation
They are the type that when writing exams and you leave your sheet open for them to copy
They will copy plus your name


Shame!!!!

Scampc

Tired of Nigeria -- set to Buy a Horse and convert my house to Solar Energy