Petrol Price Not Fixed Yet But Will Be Between N87 To N97 Per Litre – Kachikwu

The Minister of State for Petroleum and Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu, sunday clarified that the price of petrol has not been fixed yet but the official price of petrol would be announced next month.

This is to clear the air over the perception created on Christmas day that the price of petrol would be reduced to N85/ litre effective January 1.

According to him, at the current price of crude oil, the subsidy element had been eliminated, but the price of petrol had not been deregulated nor would it be deregulated come January.

“It will be adjusted within the modulating band of N87/litre to N97/litre in accordance with the international price of crude oil,” he explained.

The minister made the clarification during an inspection tour of the Kaduna Refinery and Petrochemical Company (KRPC), saying the new price was imperative in view of the current market price of crude oil.

He said the price of petrol could go either way; “it may be increased above the current selling price or may be reduced below the current selling price all things being equal”.

Speaking on speculations that the federal government intends to sell the refineries, the minister stated that there was no such plan to the best of his knowledge.

He said, for now, what the government is working towards is ensuring that the refineries operate at optimum capacity to satisfy the needs of Nigerians.

On the retention of subsidy on fuel, he did not conceal his displeasure over what he described as “political subsidy”, saying that the amount spent in the past was huge, but pointed out that government intends to introduce a price modulation band with a view to having a stable market.

“If there is an increase or decrease in the price of crude oil, we will make the necessary adjustment, so in January 2016, we will announce the new price of petrol in accordance with trends in the market,” Kachikwu said. [FMPR/NNPC]