*says any Nigerian entity is now free to import the product based on govt regulations

By Levinus Nwabughiogu

ABUJA – Minister of State for Petroleum, Mr. Ibe Kachikwu, Wednesday, defended the jerking up of pump price of Premium Motor Spirit, PMS, also known as fuel by the federal government from N86:50 to N145, saying that it was the only way out of the exorbitant prices of N150 to N250 Nigerians were subjected to at many filling stations across the country.

He however stated that government had articulated many social protection programmes in the 2016 budget to cushion the effect the hike may have on Nigerians. Rising from a meeting chaired by Vice President, Yemi Osinabjo which also had other various stakeholders including the Leadership of the Senate, House of Representatives, Nigerian Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN), at the Aguda House, official residence of the Vice President, Kachikwu noted that “the 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.”

The minister who briefed the State House Correspondents on the resolution of the meeting said that to wet the country with fuel, any Nigerian entity was now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies. Contents of the briefing ran thus: “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: “The current fuel scarcity and supply difficulties in the country. “The exorbitant prices being paid by Nigerians for the product.

These prices range on the average from N150 to N250 per litre currently. “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: “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.

“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.

Read more at: http://www.vanguardngr.com/2016/05/fg-increased-petrol-pump-price-n145-per-litre-kachikwu/

Lalasticlala

Buhari a fu.king scammer...shege dan barawo, dan ke ria

kodded:

cc pat077 :

This administration is a scam. In 2012, when fuel was
about 100 dollars per barrel the then govt said fuel will b
sold for 140 naira after subsidy removal. Now, that the
price is around 40 dollars per barrel, how come the price
is now 145 naira per litter after subsidy removal.

Nigeria has expired already

I remember many uninformed people taking to the street when the same thing was to be done back then....

It's simple...you've been used and dumped by these politicians...as always.

This administration castigated the previous government for this said action they are about to implement...

So much said for this administration...
People will suffer...

change indeed..

f

We are in trouble, thanks to the stupid youths that voted a scam government full of lies and deceit

kodded:

cc pat077 :


This administration is a scam. In 2012, when fuel was about 100 dollars per barrel the then govt said fuel will b sold for 140 naira after subsidy removal. Now, that the price is around 40 dollars per barrel, how come the price is now 145 naira per litter after subsidy removal.

exchange rate then was 155 . Now 320

grandstar:

exchange rate then was 155 . Now 320

so whose fault is that ?

buhari or Jonathan

kodded:
so whose fault is that ?


buhari or Jonathan

don't mind the iddiooot

kodded:
so whose fault is that ?

buhari or Jonathan

oil price drop and Buhari

The price of petrol cannot reduce and here's why:


1. Marketers will source their own dollars: Petroleum Minister of State Ibe Kachikwu announced that Marketers will have to source their own dollars to buy PMS. i.e. Dollars will not be sold to them at CBN rate of N200. Nairaland's daily update of exchange rates lets us know that $1 trades for upwards of N300. For those who don't know, PMS is traded internationally in US Dollars. This means Petrol Marketers will have to spend Dollars to buy this product from traders/refineries abroad, and then come and sell in Naira. Having bought Dollars for N300, will they come back and make a loss? You guess is as good as mine.

2. No matter the price of a barrel of oil, the price remains the same: Despite the rise and falls of crude oil prices from time immemorial, the price of petrol, diesel and kerosene has never come up or down in response to the crude oil price! Instead, it slowly and constantly creeps higher every single year. Diesel was deregulated in 2009 and sold for about N90 (See pic below). Today diesel retails for between N125-135 per litre. Why has the price been going up consistently?

Solutions: 1. CBN dollar monopoly must be halted! Surely it benefits many CBN heads from (now) Saint Sanusi to Soludo but you cannot have one body determining who gets a critical business resource, especially in an import dependent economy like Nigeria's. Henry Boyo's writings are instructive here.

2. Deregulation should only occur when there is sufficient and diverse local refining capacity. If multiple companies are able to refine they will be required to sell at a competitive prices, just to stay in business.

3. Remove a regulator like PPPRA setting or suggesting prices: PPPRA also releases 'templates' to guide petroleum prices. This is similar to pure water which sells for N10 regardless of manufaturer. Little known to the public, ATWAP (Association of Table Water Producers) actually sets the price in Nigeria and enforces it! ( Read this and be educated https://www.nairaland.com/418542/pure-water-biz-discuss/20 ) How can there be a free competitive market with marketers forced to retail at 'not above N145?

4. God bless Nigeria!

Now it is clearer govt created the scarcity for months to achieve their aim.

Too bad

The strategy is simple.

1 Create artificial fuel scarcity.

2, make people beg to even see any petrol to buy, let them pass through hell just to access the petrol.

3, Make them buy the petrol at price higher than the price you intend to fix the price, after they must have stayed in queues all day.

4. When they are familiar with buying at exorbitant prices after much queue, remove the artificial scarcity and the attendant queue, and watch them buy the product at an exorbitant price( albeit less exorbitant than they bought during your artificially created scarcity, but nevertheless exorbitant), and still be grateful that they no longer have to queue to buy the product.

5. You have finally succeeded in achieving your goal of increasing petrol price without eliciting public uproar.

Buhari might be clueless, but he has first class cunning and devious advisers.

ka,y did I vote 4 did dullard buhari.pls GEJ, forgive me ,Jesus ve mercy on me 4 I he sin by campaign 4 dos wicked APC.gej am sorry once more.Ogun kill buhari
.
..

#145/ltr?
Na to go buy Bicycle ooooo

eledalo:
The price of petrol cannot reduce and here's why:


1. Marketers will source their own dollars: Petroleum Minister of State Ibe Kachikwu announced that Marketers will have to source their own dollars to buy PMS. i.e. Dollars will not be sold to them at CBN rate of N200. Nairaland's daily update of exchange rates lets us know that $1 trades for upwards of N300. For those who don't know, PMS is traded internationally in US Dollars. This means Petrol Marketers will have to spend Dollars to buy this product from traders/refineries abroad, and then come and sell in Naira. Having bought Dollars for N300, will they come back and make a loss? You guess is as good as mine.

2. No matter the price of a barrel of oil, the price remains the same: Despite the rise and falls of crude oil prices from time immemorial, the price of petrol, diesel and kerosene has never come up or down in response to the crude oil price! Instead, it slowly and constantly creeps higher every single year. Diesel was deregulated in 2009 and sold for about N90 (See pic below). Today diesel retails for between N125-135 per litre. Why has the price been going up consistently?

Solutions: 1. CBN dollar monopoly must be halted! Surely it benefits many CBN heads from (now) Saint Sanusi to Soludo but you cannot have one body determining who gets a critical business resource, especially in an import dependent economy like Nigeria's. Henry Boyo's writings are instructive here.

2. Deregulation should only occur when there is sufficient and diverse local refining capacity. If multiple companies are able to refine they will be required to sell at a competitive prices, just to stay in business.

3. Remove a regulator like PPPRA setting or suggesting prices: PPPRA also releases 'templates' to guide petroleum prices. This is similar to pure water which sells for N10 regardless of manufaturer. Little known to the public, ATWAP (Association of Table Water Producers) actually sets the price in Nigeria and enforces it! ( Read this and be educated https://www.nairaland.com/418542/pure-water-biz-discuss/20 ) How can there be a free competitive market with marketers forced to retail at 'not above N145?

4. God bless Nigeria!

Nigeria shall be great again

Dis govt is totally confused and have a serious issue with telling the truth. Dis same kachikwu who claimed sometime ago dat even if subsidy is removed, fuel cannot sell for more than #95 or so.. I lie a day kips d zombies alive

eledalo:
The price of petrol cannot reduce and here's why:


1. Marketers will source their own dollars: Petroleum Minister of State Ibe Kachikwu announced that Marketers will have to source their own dollars to buy PMS. i.e. Dollars will not be sold to them at CBN rate of N200. Nairaland's daily update of exchange rates lets us know that $1 trades for upwards of N300. For those who don't know, PMS is traded internationally in US Dollars. This means Petrol Marketers will have to spend Dollars to buy this product from traders/refineries abroad, and then come and sell in Naira. Having bought Dollars for N300, will they come back and make a loss? You guess is as good as mine.

2. No matter the price of a barrel of oil, the price remains the same: Despite the rise and falls of crude oil prices from time immemorial, the price of petrol, diesel and kerosene has never come up or down in response to the crude oil price! Instead, it slowly and constantly creeps higher every single year. Diesel was deregulated in 2009 and sold for about N90 (See pic below). Today diesel retails for between N125-135 per litre. Why has the price been going up consistently?

Solutions: 1. CBN dollar monopoly must be halted! Surely it benefits many CBN heads from (now) Saint Sanusi to Soludo but you cannot have one body determining who gets a critical business resource, especially in an import dependent economy like Nigeria's. Henry Boyo's writings are instructive here.

2. Deregulation should only occur when there is sufficient and diverse local refining capacity. If multiple companies are able to refine they will be required to sell at a competitive prices, just to stay in business.

3. Remove a regulator like PPPRA setting or suggesting prices: PPPRA also releases 'templates' to guide petroleum prices. This is similar to pure water which sells for N10 regardless of manufaturer. Little known to the public, ATWAP (Association of Table Water Producers) actually sets the price in Nigeria and enforces it! ( Read this and be educated https://www.nairaland.com/418542/pure-water-biz-discuss/20 ) How can there be a free competitive market with marketers forced to retail at 'not above N145?

4. God bless Nigeria!

well done