Ibe Kachikwu, the minister for state of petroleum resources, says the removal of oil subsidy may not affect the pump price of premium motor spirit (PMS).

Speaking in Abuja on Thursday, Kachikwu said “there is so much emotion around subsidy issues” and the government would not technically be removing subsidy but focus on spending very little on it.

“My focus is that, the federal government shouldn’t spend as much as it is spending on subsidy,” he said. He said the issue of subsidy existence or removal, is no longer business as usual, as the NNPC is now taking an intellectual means of tackling the matter, without affecting the poor.

“You all know that the president has stated it, that in all we do, we must make sure that the poor people are not affected. “It has become intellectual, it’s no longer about
taking a number, yank it off, take off subsidy and we go. What we are doing is reviewing the PPPRA template, how can we reduce some of the cost elements? How do we deal with foreign exchange so there’s some stability in terms of the exchange rate?

“If we could close the amount of product that are smuggled out of the country, the effective consumption of the country cannot be more than 35 or 36 million (litres per day).

“If we take this analysis, we can deliver products today with the price of oil where it is and also sell close to the prices we have today without the need of the federal government to pay subsidy.

“It is not that we have removed subsidy but the application of market forces will enable you to sell products as close to the prices we have today.

“Is it going to be between N87 and N90? we will have to get PPPRA to do those templates and at 35 million (litres) we may sell products at N87; by the time we consume 36, we may be selling at N90 or N91”.

He said a band would be adopted to ensure crude sells within N87 and N97, depending on the price of crude oil and the modulation of PPPRA.

“Today the prices are largely close to N87; there might be no need to change the price by January, and it might go up or come down slightly by April.

“It is all the dynamics of what the crude is; so, I have not put a static figure, myself and PPPRA will sit down and do the calculations and be able to announce what price PMS will sell in January.

He said that the refineries would not be relied on until the state of their maintenance was completed, adding that Federal Government had agreed that it would not sell them at their present state.

COMPANIES THAT WILL TRADE NIGERIA’S OIL IN 2016

The NNPC also issued its 2016 crude oil term contracts to 21 companies, who would be expected to be the only traders of Nigerian crude.

According to Reuters, the contracts cover 991,000 barrels per day (bpd) of oil, worth $13.5 billion at current crude oil prices, which is roughly half of Nigeria’s crude oil production.

The refiners on the list are Spain’s Cepsa, Italy’s Saras, India’s IOC and ENOC of the Emirates, while trading houses are Trafigura, Mercuria and Vitol.

The international oil companies are ENI, Total, Exxon and Shell.

Cpumping:
we shall still protest sha, just for the fun of it

rottennaija:
One thing I like about our state petroleum minister is that he is intelligent and smart. I am guess that's what I expected from a first class material like him

Sibrah:
Good. At last I can afford to trust the govt with simple decision making. If PDP led govt had supervised same move I am sure the marketers would have transformed into cabals and regulate oil prices for huge profit via bogus claims. If the marketers could steal the govt money via subsidy you tell me how same govt would have been able to regulated them without subsidy. I support the move.

Cpumping:
we shall still protest sha, just for the fun of it

Sibrah:
Good. At last I can afford to trust the govt with simple decision making. If PDP led govt had supervised same move I am sure the marketers would have transformed into cabals and regulate oil prices for huge profit via bogus claims. If the marketers could steal the govt money via subsidy you tell me how same govt would have been able to regulated them without subsidy. I support the move.

jusRadical:




Do not be a hypocrit.

When was the last time you bought fuel at N87 per lit?

mployer:


Which government are you trusting? This hypocritical government that said it doesn't know what subsidy is?

Keep getting brainwashed.

omenka:
There's no gainsaying there's gonna be a severe slash in subsidy payments in the forthcoming year given the whispers about the policy in government circles.

I know some folks would wanna call me a hypocrite for being supportive of this when I stood firmly against it in the last admin. Let me state for the record and for the last time, most of us who did did so because of the sleaze that was the hallmark of Jonathan's admin. We knew nothing good would come out of it and indeed we were proven right by the revelations made by Christopher Kolade, the guy appointed to manage the funds saved from the partial removal: SURE-p was a humongous scam.

It shall be well with Nigeria.

omenka:
There's no gainsaying there's gonna be a severe slash in subsidy payments in the forthcoming year given the whispers about the policy in government circles.

Given the state of our financial fortunes at the moment, it is absolutely imperative that the policy be done away with and the monies saved from so doing channeled into the development of critical infrastructure to stimulate the economic growth and development we all yearn for.

With just a few nairas that was saved from subsidy removal some years ago, we all saw what Baba did with PTF. The projects, most of which are still visible to this day due to their quality, bear testament to Baba's prudence and sincerity when it comes to usage of funds.

I believe he can do it again if given the chance.

I know some folks would wanna call me a hypocrite for being supportive of this when I stood firmly against it in the last admin. Let me state for the record and for the last time, most of us who did did so because of the sleaze that was the hallmark of Jonathan's admin. We knew nothing good would come out of it and indeed we were proven right by the revelations made by Christopher Kolade, the guy appointed to manage the funds saved from the partial removal: SURE-p was a humongous scam.

It shall be well with Nigeria.

keally:
. You've said it all, you are great hypocrite and a super-self-deceiver. You only opposed GEJ of your myopic reasoning. All of you should eat the humble pie and not be ashamed to do so. GEJ is a living legend. He is the first person in over 25years of subsidy payment that stopped the payment but for brainwashed mugus like you blinded by killer-hatred. You are still covering the truth not knowing that it is an impossibility. Your co-conspirators that rocked the ship of GEJ's administration are already confessing about GEJ's UNEQUALLED achievement in virtually all sectors of the nation's economy but until they confess that they devilishly and demonically deceived Nigerians they would remain under the fierce and intense judgement of God. For people like you still revelling in self-delusion, pray you don't get so frustrated and disappointed by your messiah PMB to the point of taking your own life. The pit you dug for GEJ will swallow you all up while GEJ keeps flying to higher heights and levels of accomplishments and achievements.

Sibrah:
Good. At last I can afford to trust the govt with simple decision making. If PDP led govt had supervised same move I am sure the marketers would have transformed into cabals and regulate oil prices for huge profit via bogus claims. If the marketers could steal the govt money via subsidy you tell me how same govt would have been able to regulated them without subsidy. I support the move.

Sibrah:
3 days ago. I still boughtt fuel at N87 3 days ago.

omenka:
There's no gainsaying there's gonna be a severe slash in subsidy payments in the forthcoming year given the whispers about the policy in government circles.

Given the state of our financial fortunes at the moment, it is absolutely imperative that the policy be done away with and the monies saved from so doing channeled into the development of critical infrastructure to stimulate the economic growth and development we all yearn for.

With just a few nairas that was saved from subsidy removal some years ago, we all saw what Baba did with PTF. The projects, most of which are still visible to this day due to their quality, bear testament to Baba's prudence and sincerity when it comes to usage of funds.

I believe he can do it again if given the chance.

I know some folks would wanna call me a hypocrite for being supportive of this when I stood firmly against it in the last admin. Let me state for the record and for the last time, most of us who did did so because of the sleaze that was the hallmark of Jonathan's admin. We knew nothing good would come out of it and indeed we were proven right by the revelations made by Christopher Kolade, the guy appointed to manage the funds saved from the partial removal: SURE-p was a humongous scam.

It shall be well with Nigeria.

porka:


It's a sign of immaturity not to admit you made a mistake.

It's only a child that would continue to attempt to cover obvious falsehood with more lies.

You didn't oppose the last administration on subsidy removal because of anything but a combination ignorance, programmed thinking, and perhaps hatred.

Many of you people said then that there was no subsidy at all. While many others said it was your entitlement. Arguing that Nigeria is rich to subsidize petrol, you brought several figures of petrol pump prices from other jurisdictions to justify your entitlement tales. That was when we 'knew' how much petrol is/was sold in Iran, Venezuela, Gabon, Angola etc.

The last administration was the first to identify the unsustainability of petrol subsidy. It was the first to identify those who abused it an charged them to court.

It appointed Kolade the chair of SURE-P who did his bits and resigned based on his AGE (he said at 80 years he was done with public service).

Kolade subsequently nominated Martin Luther Agwai to Jonathan as his replacement.

Again, it's childish to attempt to cover lies with further lies. Ultimately, most lies are uncovered sooner or later.