As long as the wickedly greedy marketers continue to source forex at the black market rate to import Petrol, this prediction by Kachukwu can never come to pass! Nigerians should ask him to publicly show the indices adopted to arrive at the new price of N145 per liter. Honestly, government needs to rethink this policy and balance things up. Putting a cap of N145 per liter suggests that it will be close to N200 per liter in states close to the borders. We are yet to see the end of fuel scarcity contrary to Kachukwu's optimism!!

this minister must ve filling stations and refinery. how on earth all d filling stations dt refused to sell fuel yesterday got d fuel they are selling at d new rate TODAY?

With subsidy removal, no functional refineries and continued destruction of illegal refineries, which way Nigeria?

I think the illegal refineries should be legalized to encourage local production of PMS. This is what developing countries do.

Kachikwu should explore this area so that his prophecy of pump price of PMS can come down. We shouldn't depend on importation in this regard.

silvoice:
I Lay a curse on anyone who defend politicians simply because he or she is benefiting from them, is from the same tribe or party. I don't care which side you belong to. PDP and APC are the same and their sycophants. Are mainly idiots who will all receive their reward when the time come. Indeed, #there was a country.

SO WHO YOUR CURSE HELP

If this APC dnt get anyfin right in this their 4yrs, aswear b4 dem go smell power again ehn...even in state level

Let the subsidy go and problem be solve once and for all. PMB has the political will to do it. Patient is all we need. God bless Nigeria.

d remote cause of this bismal bismal is d fx rigidity of d govt. If fx had been released to d market forces, it won't b difficult to source for fx. and fx won't b this high. Now marketers hav been abandoned to d fx black market and d end result is a price as high as N 145

BTW y can't petro export dollars b used to cater for fuel imports?
I guess its cos som marketers would want to take advantage of it inflating their fx figures

which goes on to show DT corruption is d fundamental problem of this country. Infact it's our only problem

Never wanted to call you guys liars but there is nothing I'll do now than to call you!

TheNonce:




Is lalasticlala your father? Or are you just attracted to him?

Leave the silly one, I jst hate it when those idiots keep calling the mumu name, pls ban me,i'm getting off this shit forum.

Mr Minister, tell Nigerians the gospel truth.

greatgod2012:
Who is this one deceiving

kachukwu another lie Mohammed..... Fuel scarcity wud end by April 7,2016......by may 11th fuel was hike to #145 ......useless minister defending ur illiterate pay master.....go on.God is watching u....2019 is ard d corner.....

Thunder fire that ya mouth kachikwu.

hob:
‘Femi Asu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said Nigerians will be amazed at what will become of the price of Premium Motor Spirit in the next six months.

The Federal Government had on Wednesday announced the removal of fuel subsidy, with a new petrol price band of N135 to N145 per litre, up from N86 and N86.50.

The development has been greeted with mixed reactions, with labour vowing to protest against it.

Kachikwu, who spoke on Thursday morning on Channels at the Sunrise Daily programme which was monitored by our correspondent, said the move was necessary in order put an end to fuel scarcity in the country.

He said the market dynamics would take hold fast “because there are a lot of Nigerians who are very active, very bullish, very talented in doing this; they just have been prevented by government intrusions.

“As it gets better and it gets to a point where we find that the market has stabilised in terms of supply, we will begin to pull back a bit in terms of determinants for pricing.”

He said by opening up the space for people to perform, to practise their trade, “you will be amazed at what will happen to your N145 price because it will go downwards.”

The minister said as a result of the decline in government earnings from oil, it could not provide foreign exchange for the importation of fuel.

“You don’t give what you don’t have. We want Nigerians to understand that we feel the pain, and we have tried to avoid it since I came in October. We have done everything we can.

“We first went on to the issue of the subsidies that we inherited which, by the way, were based on 50 to 55 million litres consumption, and we said the number looked bloated. So, we did an experiment and came to a conclusion that this country doesn’t consume more than 45 million litres a day.

“Then we came to a second point and said, ‘We are not even going to have subsidy again. We are going yo exit it because there was just too much fraud involved in it.'”

The minister said if the government did not take the step it took, massive subsidy would continue, adding that there was no foreign exchange for importation.

“So, left with that option, what were we supposed to do? We have struggled. Queues continue to go and they are back. And it will continue to happen unless we address the issues.

“If you free up Nigerians to find sources of funds, they will find those secondary funds. They will import the product; the burden on the NNPC will reduce and the country will have peace and subsidy will go away permanently.”

Kachikwu added, “I am appealing to Nigerians to please for the first time realise that we are doing our very best. I have together with everybody who is in this government worked night and day looking for solutions.

“We mean well and Nigerians should please trust us. Give us a chance, you will be surprised what will become of your PMS price over the next six to eight months.”


http://punchng.com/petrol-pricell-go-six-months-kachikwu/


Lets take note my people.

We will wait

greatgod2012:
Who is this one deceiving

It's being a while Ma,seem you went on sabbatical .

if anybody can tell me a policy that has been beneficial to the masses under Buhari , I swear I go happy

labour union is a toothless dog, pls keep quit

#000000

Ndolarr:
As long as the wickedly greedy marketers continue to source forex at the black market rate to import Petrol, this prediction by Kachukwu can never come to pass! Nigerians should ask him to publicly show the indices adopted to arrive at the new price of N145 per liter. Honestly, government needs to rethink this policy and balance things up. Putting a cap of N145 per liter suggests that it will be close to N200 per liter in states close to the borders. We are yet to see the end of fuel scarcity contrary to Kachukwu's optimism!!

I think a cap is a cap regardless of near border or not. Anyone selling above 145 does so illegally according to the new regulations. I think I agree with him that fuel prices will go down due to competition but I think it may not fall below a threshold.

If the market forces align with the idea behind this subsidy removal and fuel hike, it's possible dollars on the parallel market may fall, thereby causing the price at which marketers procure forex and buy PMS products to fall as well, then they may decide to lead the market and drop their prices.
Again, the market is now open. What it means is that you and I can now source for and sell PMS. So as we get the forex and product, we can now see with a reasonable profit margin. So if dollar drops to 160 (I pray o), we can on our own drop our prices to 80+profit per litre of PMS so we make more turnover and outshine the market, that's if we don't see the likes of Ifeanyi Uba selling fuel for 40 cos whichever way, he can't lose (Example is Dangote selling cement for 1,100 when other cement companies feel their production cost is even more than 1,100 so they cannot sell at a loss to compete with him, yet Dangote isn't losing anything by selling at the cheapest price)

However, even if dollar increases to 500 (I pray it never does), PMS will still not sell for more than 145 according to the new rules.

I see this as an opportunity wise investors are already consulting their financial advisers on.
The only k-leg is that many intending youths investors may not have the bulk monies to risk entering this business, and it's dangerous taking a loan from bank or elsewhere to venture into this if you don't understand how the market works.

I think this is just what I can make of the new policy. Perhaps the 145 price may be tooooooo high a benchmark, but if you personally know any importer or someone close to them, ask them frankly and they'll tell you anything lower than that for now would have still led to the same "artificial scarcity" and hoarding that we have been experiencing.

Haven't you noticed that now the queues are beginning to fearless out? All of a sudden, there's fuel. Ha hahahahaha. So what went wrong since Politics by the Cabals in that industry. Lol

I can only hope for better days ahead. I just have to be positive cos while I will be complaining without actions, other smart ones will be taking advantage of the situations on ground to their benefit

Keneking:
Great...but where is lalasticlala sef

- devalue Naira
- more Nigerians would go into PMS business like diesel
- “you will be amazed at what will happen to your N145 price because it will go downwards.”
- "We are not even going to have subsidy again. We are going to exit it because there was just too much fraud involved in it.'” Jonathan sef
- "If you free up Nigerians to find sources of funds, they will find those secondary funds. They will import the product; ..... will have peace and subsidy will go away permanently."

Sai Buhari, you are doing well

You reason like a true Nigerian who understand what is going on and how to get things right. The decision of FG is best as that will be a lot of marketers and some will be selling at more lower price.

1. What are the benefits of the new price regime to Nigerians?
This government is elected to serve the people and provide benefits to all. The new pricing regime brings the following benefits:
• End fuel scarcity by ensuring availability of products at all locations of the country

• Reduce hoarding, smuggling and diversion substantially and stabilise price at the actual product price

• Ensures market stability and improves fuel supply situation through private sector participation

• Creates Labour market stability (will potentially create additional 200,000 jobs through new investments in Refineries and Retails and prevent potential loss of nearly 400,000 jobs in existing investments)
2. Why the new price regime?
The rise in crude oil price and high cost of importation has brought back subsidy regime (at the price of N86.50). Due to decline in government income related to crude oil and output caused by vandalism in the Niger Delta, there is neither funding nor appropriation to cover this in the 2016 Budget.

3. What is the difference between this new price regime and previous price reviews?
All stakeholders including marketing companies and independent experts were consulted in arriving at the appropriate cost reflective regime. This is in furtherance of the Price modulation on framework rolled out in January 2016 which entails modulating prices down or up on a periodic basis to reflect actual prevailing costs.

4. Is this new price regime a deregulation?
While the Federal Government is not deregulating, this new price regime will ensure that the price of products are monitored to ensure that citizen get a fair value for products they purchase.

5. What is the real cost of PMS to the Nigerian consumer?
The estimated “true” cost of PMS was valued to be 243.05NGN per litre. This is factoring the estimated average mean spent to obtain PMS at the official price (86.50NGN), the estimated hourly wage of the average Nigerian, the average price of PMS on the black market and the estimated average volume bought per visit to the filling stations.
6. Why do we have scarcity?
There is no foreign currency and ways to open a new line of credit to bring in more products. This has imposed over 90% supply on NNPC since October 2015 in contrast to the past where NNPC supplies ~48% of the national requirement. NNPC does not have the resources for and is not designed to meet this increase in supply, this has resulted in the current fuel situa on across the country.
7. Will the new price regime ensure availability of petroleum products?
The new price regime will allow Marketers source their foreign exchange independently of CBN and ensure product supply in all locations of the country.
8. Will the new price regime positively impact the economy?
Clearly the continuation of subsidies in any form for PMS limits the ability of Government to deliver its statutory functions such as power generation, security, education, health etc. The new price regime will enable government focus on these critical sectors and free up our scarce foreign exchange to be used in other sectors
9. What happens to the subsidy provision in the 2016 budget?
There is no provision for subsidy in the 2016 budget
10. Why should Nigerians not enjoy low petroleum prices as the nation is a Major Oil Producer?
Crude oil price is an internationally traded commodity, the prices are not set by the countries that produce it. Neither do oil producing countries get a discount in the international market for producing this product. Furthermore, crude oil price accounts for about 80% of the final cost of fuel. Other costs include depot charges, transportation costs, chemicals, spare parts, raw materials etc are related to host of economic factors. Therefore, at the current crude oil price of $40 per barrel, the finished domestic refined fuel sold to Nigerians cannot be priced lower than the cost of the crude.
11.How would the Government ensure that Petroleum Marketers sell within the price range?
The relevant regulatory institutions (DPR, PPPRA) will be further empowered to ensure level playing ground, strict compliance with market rules by all stakeholders and consumer protection.
12. How does petrol price in Nigeria compare with those of other countries?
Even with the new price regime, Nigeria would remain one of the cheapest fuel markets in Africa and this could even be lower once competition takes effect. Likelihood of smuggling to neighbouring countries will also be significantly reduced with the new price regime
13. When do we stop petroleum products importation?
Nigeria will only stop product importation when it attains local production sufficiency. The present administration is working assiduously on key initiatives towards boosting our local refining capacity.