Minister of State for Petroleum Resources, Dr Ibe Kachikwu
Minister of State for Petroleum Resources, Dr Ibe Kachikwu has hinted of a possible imposition of new pump price of petroleum, which may come into effect early in January.Kachikwu dropped the hint in Abuja during his unscheduled visit to some filling stations within the metropolis.
He said it was high time Nigeria took practical look at the pricing dynamics of the oil and gas downstream sector.
He, however said he was emphatic that there would be no reduction in pump price of regulated products.
“If we don’t deal with these systemic issues, these things will continue to repeat themselves; so, long term answer is simple: We have got to look at the pricing dynamics by January and see how we can sustain supply in this sort of current environment.
“We have to look at whether we have enough budgetary provisions to deal with these issues, but I am working very closely with the President who is in charge of the sector and takes very direct interest in the sector. But we are going to find solutions to all of these,” he said.
The Authority had reported earlier that Kachikwu had instructed the Department of Petroleum Resources (DPR) to distribute petrol of any filling stations involved in hoarding to customers free of charge.
On the refusal of petroleum marketers to import fuel until the government settles the outstanding due to them, Kachikwu said payment would be made within the next two weeks.
He said, “I am sure within the next one or two weeks, this will be done and the President is looking at shorter ways to get this done, and once we get the Senate’s concurrence (even if the approval for the extra budgetary allocation has not come), the President will authorise the CBN to pay the money.”
He also disclosed that he is leading talks with the Senate President who is in turn working with his team to ensure that something is done about the non-payment.
He said it was high time Nigeria took practical look at the pricing dynamics of the oil and gas downstream sector.
He, however said he was emphatic that there would be no reduction in pump price of regulated products.
“If we don’t deal with these systemic issues, these things will continue to repeat themselves; so, long term answer is simple: We have got to look at the pricing dynamics by January and see how we can sustain supply in this sort of current environment.
“We have to look at whether we have enough budgetary provisions to deal with these issues, but I am working very closely with the President who is in charge of the sector and takes very direct interest in the sector. But we are going to find solutions to all of these,” he said.
The Authority had reported earlier that Kachikwu had instructed the Department of Petroleum Resources (DPR) to distribute petrol of any filling stations involved in hoarding to customers free of charge.
On the refusal of petroleum marketers to import fuel until the government settles the outstanding due to them, Kachikwu said payment would be made within the next two weeks.
He said, “I am sure within the next one or two weeks, this will be done and the President is looking at shorter ways to get this done, and once we get the Senate’s concurrence (even if the approval for the extra budgetary allocation has not come), the President will authorise the CBN to pay the money.”
He also disclosed that he is leading talks with the Senate President who is in turn working with his team to ensure that something is done about the non-payment.
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