We have just finished a meeting of various stakeholders presided over by His Excellency, the Vice President of the Federal Republic of Nigeria.
The meeting had in attendance the Leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN).
The meeting reviewed:
1. The current fuel scarcity and supply difficulties in the country
2. The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently.
3. The meeting also noted that the main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings by the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.
Following a detailed presentation by the Honorable Minister of State for Petroleum Resources, it has now become obvious that the only option and course of action open to the government is to take the following decisions:
1. In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.
2. All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources, and accordingly PPPRA template will reflect this in the pricing of the product.
Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today.
We expect this new policy will lead to improved supply and competition, and eventually drive down pump prices, as we have experienced with diesel.
In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.
We share the pains of Nigerians but, as we have constantly said, the inherited difficulties of the past and the challenges of the current times imply that we must take difficult decisions on these sorts of critical national issues.
Along with this decision, the federal government has in the 2016 budget made unprecedented social protection provisions to cushion the current challenges.
We believe in the long term, that improved supply and competition will drive down prices.
The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products.
Thank you.
SIGNED
HONOURABLE MINISTER OF STATE FOR PETROLEUM RESOURCES Click to signup for FREE news updates, latest information and hottest gists everyday
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Liars,men without honor and integrity. You call yourselves Pastors, righteous and blameless folks. You compare you budgets with previous administrations but do not have the courage to admit that you are wrong in many of the policies you have pushed forward in the name of change. Hypocrites worst than fantastically corrupt leaders.
ReplyDeleteSai baba
DeleteThis is tough but I am sure we will be better for it. God bless Nigeria.
ReplyDeleteGod bless mugus
DeleteAmen
DeleteI strongly believe that no Nigerian will take this lightly front this govt, now I believe that the change govt has no agenda and solution to the hardship already inflicted on the mases,quickly have a rethink before nigerian go on rampage again.
ReplyDeleteLoooool. Come and protest na idiat thief ole. Subsidy will choke ur big mouth
DeleteIt is a good decision, my only bone of contention is the fact that why is the same Federal Government not talking of better welfare packages of the workforce to alleviate to some reasonable extent the hardship this change of price is going to bring to the populace.
ReplyDeleteGood point. The masses need some cussion effect somehow but we need to figure out a way to help the masses without the looters siphoning the funds like what happened in subsidy era
DeletePlease can someone clarify the secondary source of FOREX. If it is black market, hope we know that it is not stable
ReplyDeleteMr president remember your campaign promise of 1ltr =#5
ReplyDeleteMr president remember your campaign promise of 1ltr =#5
ReplyDeleteWhen the militants are blowing up pipelines the government can no longer sustain subsidy for petrol. Especially for the boats used by the vandals. It takes a courageous leader to take the right decisions. GEJ lacked the courage.
ReplyDeleteYou were the sort that were hailing, routing and urging Abacha on. Sad!
DeleteWell stated dear! I wish most Nigerians can view things from the same perspective as some of us.
DeleteYour father
ReplyDeleteThis people are not just incompetent, they are heartless. Nigerians don enter one chance true true.
ReplyDeleteSai PMB
Deletethis government, what are they smoking?
ReplyDeleteGuys please always read the write up before commenting. This is a welcome development. At long last we can get rid of the pms cabal.
ReplyDeleteWord!!!
DeleteGOD WILL JUDGE ALL OUR POLITICAL LEADERS. THEY ARE SATANIC INCLUDING THE SO-CALLED SECOND IN COMMAND RETIRED PASTOR
ReplyDeleteWhen the previous government moved to remove subsidy, these people occupied Nigeria and the gullible followers were cheering. Tell me what new idea this government has brought to the table. I see them just doing everything Gej did, was doing and was going to do. It was just about a group of persons who wanted to prove that they can select(not elect) Nigeria's president - and some people thing they voted a president. Tall dreams from Africa!
ReplyDeleteBy the way, I support the removal. Just not excited because it was long due and could have happened years ago but these same political prostitutes were still eating from pdp so they opposed it.
ReplyDeleteTrue talk Savimbi. Who knows where the likes of Obaseki get their source of income, A country where it's citizens make excuses for a govt that made campaign promises only to get to power and tell Nigerians that it was the previous govt that is to blame for their failure. U can imagine if we continue in this trend, what Nigeria's fate will be in 20 yrs time.
ReplyDeleteThis announcement also marks the official devaluation of the Naira. By adopting the black market exchange rate for setting price bands, we are recognising the black market as th real FOREX market.
ReplyDeleteBrilliant!
DeleteBut this is yet to be clarified: Along with this decision, the federal government has in the 2016 budget made unprecedented social protection provisions to cushion the current challenges.
Truth is Nigeria needs a national rail network for goods, produce from hinterlands and commuting generally. With that in place, fuel can cost 1k for all I care. Railway is the only solution to cushioning the effect on salary earners, farmers, and the populace who will now be paying higher prices to go to work, for food, our daily fuel.
This is the change you all voted for ... Please do not complain ..
ReplyDeleteThe problem in Nigeria is that we have a huge population of illiterate who cannot dissect and analyze info. With the global economic crises, subsidy cannot be sustain, no NEVER. Yes, it will impact negatively into my finance, but with time, we will get what we want like in the telecom industry.
ReplyDeleteProf. I want to submit to you that your premise is wrong. Nigerians are fully aware of the implications of this policies. What is key here are issues that border on falsehood and deceit! This government can never make progress if the continue in this regard and take Nigerians for granted. As a matter of fact they should bury their heads in shame.
DeleteGod bless mugus. Am in.
ReplyDeleteBuhari is doing good let us give them 16years everything will be fine
ReplyDeleteHOW CAN THE COMPETITION DRIVE THE PRICE DOWN WHEN THE MAIN FACTOR IN COSTING THE PETROL PRICING IS FOREIGN EXCHANGE RATE WHICH IS NOT IN THE CONTROL OF OIL MARKETERS
ReplyDelete