The Minister of State for Petroleum, Dr. Ibe Kachikwu while inspecting the refineries in Port Harcourt on Christmas Day told newsmen that the Nigerian National Petroleum Corporation (NNPC) will announce a new pump price of N85 per litre of petrol in January 2016.
Dr. Ibe, who is also double as the Group Managing Director of the NNPC added that the government could no longer afford the payment due to the dip in its revenue, caused by the drop in crude oil prices.
He said a new pricing template he signed off on two days back will effectively removed the payment of subsidy on petrol and that oil marketers would be informed of the development in the coming days.
Even though the official price of petrol is N87 but it is sold for higher prices in many states across the country.
He noted that all efforts were being made to get the refineries to start up to 60% production also in January that will supply about 11 million litres of petrol daily.
“If you look at the new PPPRA template that we developed and which I just signed off two days ago, when it is announced you will find out that for now (and I use the emphatic word of the President ‘for now’), the price of the refined product will actually be lower than 87 naira, It will be 85. We will probably announce that in January if the prices hold.
“What that does for you is that it’s modulating. If it goes up you move up, if it comes down you come down. So we take away the fact of having to go find funds to pay for these subsidies that we cannot afford he added.