The Minister of State for Petroleum, Dr. Ibe Kachikwu, has told members of the House of Representatives that the Federal Government had no other option than to increase the price of fuel.
He said that this was because of the diminished foreign exchange supply situation in Nigeria, which forced marketers to stop importation and imposed over 90 per cent supply on the Nigerian National Petroleum Corporation (NNPC) since October 2015.
He further give reason for the price increase to significant decline in government’s foreign exchange revenues and renewed sabotage and pipeline vandalism in the Niger Delta.
Adding that there was no provision for subsidy in the 2016 Appropriation Act and as at Monday, the fuel price of 86.50 gave an estimate subsidy claim of 13.7 Naira per litre, which translates to 16.4 billion Naira monthly.
He restated that they were left with no option than to liberalize the market.
Kachikwu explained that the new price band had gone into effect and that the market had stabilised in terms of product availability.
He said that this was because of the diminished foreign exchange supply situation in Nigeria, which forced marketers to stop importation and imposed over 90 per cent supply on the Nigerian National Petroleum Corporation (NNPC) since October 2015.
He further give reason for the price increase to significant decline in government’s foreign exchange revenues and renewed sabotage and pipeline vandalism in the Niger Delta.
Adding that there was no provision for subsidy in the 2016 Appropriation Act and as at Monday, the fuel price of 86.50 gave an estimate subsidy claim of 13.7 Naira per litre, which translates to 16.4 billion Naira monthly.
He restated that they were left with no option than to liberalize the market.
Kachikwu explained that the new price band had gone into effect and that the market had stabilised in terms of product availability.
No comments:
Post a Comment