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Petrol price will go down in six months – Kachikwu

By on May 13, 2016

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.”

 

[Punch]

2 Comments

  1. abdulkadir h

    May 13, 2016 at 9:10 am

    i disagree with ministers statement petrol price cant come down in six month

  2. dangle

    May 13, 2016 at 2:20 pm

    Senator Deno has given fed. govt. and Buhari seven days to reverse the price or else he
    will lead Nigerians for a protest.The Senator is talk-na-do. And
    Nigerians should be happy that we have such at the Senate. We have
    suffered enough in the mix of plenty. Read below and see how cabals had
    reduced the whole Nigerians to nothing by owning all the oil blocks. The
    oil blocs listed in the
    statement are “Apo Well
    awarded to Sapetro Oil owned
    by Gen Theophilus Danjuma.
    Apo field is capable of
    producing 300,000 barrels per
    day and crude reserve of 500
    million barrels; OML 110 Obe
    oil field owed by Alhaji Mai
    Daribe; Cavendish Petroleum
    with an estimated 500 million
    barrel of crude oil; Akpo
    condensate field awarded to
    Sapetro Oil owned by Gen.
    Theophilus Damjuma; OML
    112 and OML 117 awarded to
    AMNI International Petroleum
    Development Company
    owned by Colonel Sanni Bello,
    son-in-law to former head
    of state, Gen. Abdulsalami
    Abubakar; OML 115 also
    known as Oldwok field and
    Ebok field awarded to Alhaji
    Mohammed Indimi, in-law
    to former head of state, Gen.
    Ibrahim Babangida; OML 215
    awarded to and operated by
    Nor East Petroleum Limited
    owned by one Alhali Saleh
    Mohammed Gambo. The field
    is worth $100 billion after tax.”
    Others listed are “OML
    108 awarded to Express
    Petroleum Company owned
    by Alhaji Aminu Dantata.
    This field is worth $128 billion
    dollars; OML 113 allocated
    to Yinka Folawiyo Petroleum
    Limited owned by Alhaji
    W. I. Folawiyo. Net worth is
    $150 billion; Prince Nasiru
    Ado Bayero, cousin to the
    Emir of Kano, Lamido Sanisu,
    owns ASUOKPU/UMUTU
    marginal oil fields. It is worth
    $110 billion; Inter owned by
    Atiku Abubakar, Yara dua and
    Ado Bayero has a substantial
    stakes in the oil and gas
    exploration in the Niger Delta
    of Nigeria. AMNI International
    Petroleum Company owns
    OML 112 and OML 117.
    Former Minister of Petroleum
    and OPEC chairman, Rilwanu
    Lukman has major stakes in
    AMNI International Petroleum
    Company. OML 67 is operated
    by Afren Plc. Rilwanu lukman
    also has a major stakes and the
    field worth $180 billion.”
    It also listed OPL 245
    which it said was awarded to
    Malabu Oil and Gas owned
    by Dan Etete. “It is worth $50
    billion. OPL 289 and OPL 233
    were awarded to Cleanwater
    Consortium; the two fields
    are worth $200 billion. Former
    Governor Peter Odili of Rivers
    State, Obasanjo and Sultan
    of Sokoto have major Stakes.
    OPL 288 was awarded to
    Focus Energy; Senator Andy
    Uba, Obasanjo and Gen
    Theophilus Danjuma are the
    major stakeholders. The field
    is worth $70 billion. OPL 291
    awarded to Starcrest Energy
    Nigeria Limited (and) owned
    by Emeka Offor. The field
    is worth $100 billion. Mike
    Adenuga’s Conoil controls and
    operates six (6) oil blocs and
    exports about 500,000 barrels
    of crude oil daily. These six oil
    blocs are worth $500 billion.”