The Minister of State for Petroleum Resources, Ibe Kachikwu, on Monday announced the Nigerian government’s plan to revert to the old pump price of N97 per litre for Premium Motor Spirit, popularly known as petrol, in 2016.
Mr. Kachikwu stated this while defending the Petroleum Ministry’s projections contained in the 2016 to 2018 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, FSP, before the Joint Senate/House of Representatives Committee on Finance, Appropriation and Banking, Insurance and other Financial Institutions.
He explained that the Nigerian economy could no longer support the current price of N87 per litre.
On January 18, 2015, the former Minister of Petroleum Resources, Diezani Alison-Madueke, announced the reduction by N10, as a result of the slide in the international price of crude oil.
But on Monday, Mr. Kachikwu, who is also the group managing director of the Nigerian National Petroleum Corporation, disclosed the government’s plan to reverse the price of the product to N97 per litre as part of the measures to end the subsidy regime.
If the government realises that even N97 per litre would cost it extra funds in subsidy, it would resort to total removal of subsidy, Mr. Kachikwu said.
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