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Kachikwu: I didn’t say petrol will sell for N97

Minister of State for Petroleum Resources and Group Managing
Director of the Nigerian National Petroleum Corporation (NNPC), Dr.
Ibe Kachikwu, has dismissed insinuations in some quarters that
the Federal Government has concluded plans to increase the pump price
of fuel from N87 to N97 per litre as from January 2016.

Speaking during a media parley at the NNPC Towers, Abuja, Kachikwu
noted that the discourse has long left the realm of subsidy removal to
a more scientific price modulation approach, which entails an elastic
price mechanism regime to be reviewed periodically to reflect the
prevailing international price of crude.

He explained that when operational, the novel price modulation system
will place a N97 per litre cap on the price of fuel to ensure that
Nigerians are insulated from the vagaries of the global crude price.

“I did not say that refined petroleum products will sell for N97 per
litre next year. I said between a band of N87 and N97, we are
going to be looking at prices and today the prices are largely close
to N87. So, there is no need to change the price,’’ he said.

The minister noted that to determine the price of petroleum products
in future, the Petroleum Products Pricing Regulatory Authority (PPPRA)
will undertake quarterly review of the crude market situation.