FG Removes Subsidy, To Reduce Petrol Price From January 1st

The Federal Government would on January 1, 2016 reduce the pump price
of Premium Motor Spirit, popularly known as petrol, to N85 per litre.

The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, who
broke the news to journalists,during a tour of the Port Harcourt
refinery on Christmas Day said that the Federal government is working
to reduce the pump price of petrol to about 85 or 86 naira per litre
by Jan 1st.

He said efforts were on to get the refinery to achieve 60 percent
production capacity and to supply about 11 million liters of petrol
daily.

"If you look at the new PPPRA template that we developed and which I
just signed off two days ago, when it is announced you will find out
that for now ,and I use the emphatic word of the President for now,
the price of the refined product will actually be lower than 87 naira,
It will be 85. We will probably announce that in January if the prices
hold.

"Like I said, we have done a modulation calculation and it is showing
us below N87. I imagine that if PPPRA publishes it today, it will
become effective immediately. But
the 1st of January that is when we are looking at."

"What that does for you is that its modulating. If it goes up you move
up, if it comes down you come down. So we take away the fact of having
to go find funds to pay for these subsidies that we cannot afford.

"More importantly we try to be as close to the pump price that we have
now as possible," he said.

-Vanguard