THE FEDERAL GOVERNMENT MAY REDUCE THE PUMP PRICE OF PETROL TO N85 PER LITRE FROM JANUARY 1, 2016.
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, made this disclosure to journalists at the Port Harcourt Refining Company, Rivers State, after inspecting the plant.
Kachikwu who said that he approved the new price for the agency the modulation done is below N87 and that if PPPRA publishes it today, it will become effective immediately.
He said the new price would be below the current N87 per litre and it would now convince Nigerians that the pricing modulation that the Federal Government promised to embark on a few days ago was not a trick.
Meanwhile ,The Group Managing Director, Nigerian National Petroleum Corporation, said that state-owned refineries would make direct payments into the federation account from 2016.
Kachikwu disclosed that the NNPC was adopting a plan that would give the refineries some sort of autonomy, without privatising them. He added that high level discussions were underway with local and international investors to bridge funding gap in the sector.
Kachikwu said the initiative was geared towards preventing the government from bearing the burden of funding capital intensive projects in the upstream sector of the oil and gas industry. The minister assured that the NNPC’s over 5000 km of pipelines across the country would be privatised in order to enhance efficient management of the infrastructure and bring pipeline vandalism to the barest minimum.
Speaking on the December deadline for the refineries, Kachikwu said the reports before him showed that, two of the refineries were likely to meet the deadline