IPMAN , NLC where is your protests when Goodluck Jonathan removed Subsidy as kachikwu announces Why FG increased petrol pump price to N145 per litre
Alhaji Abubakar Maigandi, the Vice President, Independent Marketers
Association of Nigeria (IPMAN), has commended the Federal Government on
the new pump price of petrol. Maigandi said on Wednesday in Abuja that
the decision would help to put to an end the persistent petrol scarcity
in the country.
“This is a good development; the best that will happen is complete removal of the subsidy. “The price they put is a good one, but the best thing is to leave the market open so that people will decide what they want to sell after importation,” he said. He assured that the products would be available with this development, adding that the association was ready to continue to support government’s effort. The Petroleum products Pricing Regulatory Agency (PPPRA) has announced a new pump price of N145 per litre for petrol. A statement signed by Mrs Sotonye Iyoyo, the Acting Executive Secretary of PPPRA, said that the new price would take immediate effect “In furtherance of its mandate to ensure the efficient supply and distribution of petroleum products, PPPRA hereby announces, effective immediately, that the new price band for PMS shall be at a maximum of N145 per litre. “However, NNPC retail stations on the outskirts of major cities are advised to sell at price lower than N145 per litre,” it said. The statement said that the review became imperative in the face of extreme difficulties faced by petroleum product Importers in sourcing foreign exchange. This, it added, had made it difficult to meet the consumption demand of the nation. “Importers will henceforth be permitted to source for their foreign exchange requirements from the secondary sources. “PPPRA is conscious of the difficulties that Nigerians have been going through in the last few months. “To ameliorate this situation, we shall continue to modulate pricing in accordance with prevailing market dynamics thereby ensuring fair value to all citizens,” it said.
The subsidy
Minister of State for Petroleum, Mr. Ibe Kachikwu, Wednesday, defended the jerking up of pump price of Premium Motor Spirit, PMS, also known as fuel by the federal government from N86:50 to N145, saying that it was the only way out of the exorbitant prices of N150 to N250 Nigerians were subjected to at many filling stations across the country. He however stated that government had articulated many social protection programmes in the 2016 budget to cushion the effect the hike may have on Nigerians. Rising from a meeting chaired by Vice President, Yemi Osinabjo which also had other various stakeholders including the Leadership of the Senate, House of Representatives, Nigerian Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN), at the Aguda House, official residence of the Vice President, Kachikwu noted that “the 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 of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.” NNPC Mega Filling Station now selling at N138 per litre in Abuja yesterday.File: NNPC Mega Filling Station The minister who briefed the State House Correspondents on the resolution of the meeting said that to wet the country with fuel, any Nigerian entity was now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies. “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: “The current fuel scarcity and supply difficulties in the country. “The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently. “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 of 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 now open to the government is to take the following decisions: “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. “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, 11th May, 2016 and that the new price for PMS will not be above N145 per litre. “We expect that 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 an unprecedented social protection provision 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.”
“This is a good development; the best that will happen is complete removal of the subsidy. “The price they put is a good one, but the best thing is to leave the market open so that people will decide what they want to sell after importation,” he said. He assured that the products would be available with this development, adding that the association was ready to continue to support government’s effort. The Petroleum products Pricing Regulatory Agency (PPPRA) has announced a new pump price of N145 per litre for petrol. A statement signed by Mrs Sotonye Iyoyo, the Acting Executive Secretary of PPPRA, said that the new price would take immediate effect “In furtherance of its mandate to ensure the efficient supply and distribution of petroleum products, PPPRA hereby announces, effective immediately, that the new price band for PMS shall be at a maximum of N145 per litre. “However, NNPC retail stations on the outskirts of major cities are advised to sell at price lower than N145 per litre,” it said. The statement said that the review became imperative in the face of extreme difficulties faced by petroleum product Importers in sourcing foreign exchange. This, it added, had made it difficult to meet the consumption demand of the nation. “Importers will henceforth be permitted to source for their foreign exchange requirements from the secondary sources. “PPPRA is conscious of the difficulties that Nigerians have been going through in the last few months. “To ameliorate this situation, we shall continue to modulate pricing in accordance with prevailing market dynamics thereby ensuring fair value to all citizens,” it said.
The subsidy
Minister of State for Petroleum, Mr. Ibe Kachikwu, Wednesday, defended the jerking up of pump price of Premium Motor Spirit, PMS, also known as fuel by the federal government from N86:50 to N145, saying that it was the only way out of the exorbitant prices of N150 to N250 Nigerians were subjected to at many filling stations across the country. He however stated that government had articulated many social protection programmes in the 2016 budget to cushion the effect the hike may have on Nigerians. Rising from a meeting chaired by Vice President, Yemi Osinabjo which also had other various stakeholders including the Leadership of the Senate, House of Representatives, Nigerian Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN), at the Aguda House, official residence of the Vice President, Kachikwu noted that “the 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 of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.” NNPC Mega Filling Station now selling at N138 per litre in Abuja yesterday.File: NNPC Mega Filling Station The minister who briefed the State House Correspondents on the resolution of the meeting said that to wet the country with fuel, any Nigerian entity was now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies. “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: “The current fuel scarcity and supply difficulties in the country. “The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently. “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 of 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 now open to the government is to take the following decisions: “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. “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, 11th May, 2016 and that the new price for PMS will not be above N145 per litre. “We expect that 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 an unprecedented social protection provision 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.”
IPMAN , NLC where is your protests when Goodluck Jonathan removed Subsidy as kachikwu announces Why FG increased petrol pump price to N145 per litre
![IPMAN , NLC where is your protests when Goodluck Jonathan removed Subsidy as kachikwu announces Why FG increased petrol pump price to N145 per litre]()
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Wednesday, May 11, 2016
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