The President Muhammadu Buhari -led Federal Government has eventually removed the controversial fuel subsidy . This disclosure was made by the Petroleum Minister of State , Dr . Emmanuel Ibe Kachikwu in Port Harcourt today
while on According to Kachukwu , who broke the news to journalists in the Port Hacourt Refinery
Company ( PHRC) , where he spent Christmas inspecting the plant , PRNigeria reported Justifying government’ s reasons for scrapping the Petroleum Support Fund otherwise known as oil subsidy, Kachikwu explained that government can no longer afford to subsidize
the product following the fraud that has
attended its operation .
He added that it has become clear that
government earnings are dipping on daily basis .
His words: “ It is out I signed off on it
yesterday ( Thursday) . I imagined that in the next couple of days the marketers would get advice on that . The nice thing about the PPPRA, where I signed up on it yesterday is that the price will be far below N 87 .
So for the first time people will understand
that the pricing modulation I was talking
about is not a gimmick . It is for real. We
have gone to find out how we will be able
fluctuate this market to reflect what the
reality of crude market is . The objective is that
one , we cannot afford to continue to subsidize.
We can ’t even understand where those subsidies
were going to . There is a lot of fraud elements
in it so we need to cut that of .
The second is the earning capacity of the
Federal Government is deteriorating by the day
with lower prices of crude and come out more .”
He submitted that from the application market
realities for the pricing modulation , government
has discoverd that petrol would sell for either
N 85 or N 86 per litre .
The minister recalled that it was from this
axiom that President Muhammadu Buhari
announced that the price of petrol remains N 87
at the moment .
Kachikwu said : “ But in applying that where we
landed when we did the analysis for the very first time was about N 85 or N 86 so it is below
N 87.
And maybe the first price that will come will reflect it. That was why Mr . President said that prices will be N 87 for now . And that is what we have in mind .”
On the security of the pipelines , he said that government had tried stopping the menace with
military intervention to no avail before it
engaged some private contractors who had
worked with the majors for the crude pipeline management .
According to him, the private contractors have taken over Atlas Cove , Mosimi and they would be extending the surveillance to Ilorin between yesterday and today .
They will also look at the Port Harcourt and
Aba axis , he stressed .
The minister said that government is now
beginning to have a clue of how to tackle
pipeline insecurity , adding that it is far more
expensive to convey petroleum and products
through pipelines than trucking them by road .
He said from the briefing he got from the
inspection of the refineries , they are close to re- opening .
“ In the next one week , we are ready to see
products out of here ” , he disclosed .
Kachikwu said that a lot of the rehabilitation
of the refinery was being done with intensive
manual labour of the staff since paucity of
fund affected the holistic change that is
required in the factory.
He said that the refinery is now aging so one fault comes up after the other even after repair but that would stop when government repairs the plant holistically early next year.
According to him, about 5 .5 million litres daily of PMS is expected from the refinery in the
next few days . Other products to come from
the plants, said Kachikwu “ are AGO , Kero and others . Where we love to be is to have half of the consumption of this country at the refineries at the minimum, which is about 20 million litres . But where we are with the sleepless night I have had in the last few weeks any molecule is significant .
Kaduna will still be doing 2 . 3 million. Let ’s
start from there. And that is doing 60 per cent
performance . This is still an assumption. I will
like to see them getting closer to 80 or 90 . By
the time they time they do that we will be
getting 11 to 12 million litres out of this
place. ”
while on According to Kachukwu , who broke the news to journalists in the Port Hacourt Refinery
Company ( PHRC) , where he spent Christmas inspecting the plant , PRNigeria reported Justifying government’ s reasons for scrapping the Petroleum Support Fund otherwise known as oil subsidy, Kachikwu explained that government can no longer afford to subsidize
the product following the fraud that has
attended its operation .
He added that it has become clear that
government earnings are dipping on daily basis .
His words: “ It is out I signed off on it
yesterday ( Thursday) . I imagined that in the next couple of days the marketers would get advice on that . The nice thing about the PPPRA, where I signed up on it yesterday is that the price will be far below N 87 .
So for the first time people will understand
that the pricing modulation I was talking
about is not a gimmick . It is for real. We
have gone to find out how we will be able
fluctuate this market to reflect what the
reality of crude market is . The objective is that
one , we cannot afford to continue to subsidize.
We can ’t even understand where those subsidies
were going to . There is a lot of fraud elements
in it so we need to cut that of .
The second is the earning capacity of the
Federal Government is deteriorating by the day
with lower prices of crude and come out more .”
He submitted that from the application market
realities for the pricing modulation , government
has discoverd that petrol would sell for either
N 85 or N 86 per litre .
The minister recalled that it was from this
axiom that President Muhammadu Buhari
announced that the price of petrol remains N 87
at the moment .
Kachikwu said : “ But in applying that where we
landed when we did the analysis for the very first time was about N 85 or N 86 so it is below
N 87.
And maybe the first price that will come will reflect it. That was why Mr . President said that prices will be N 87 for now . And that is what we have in mind .”
On the security of the pipelines , he said that government had tried stopping the menace with
military intervention to no avail before it
engaged some private contractors who had
worked with the majors for the crude pipeline management .
According to him, the private contractors have taken over Atlas Cove , Mosimi and they would be extending the surveillance to Ilorin between yesterday and today .
They will also look at the Port Harcourt and
Aba axis , he stressed .
The minister said that government is now
beginning to have a clue of how to tackle
pipeline insecurity , adding that it is far more
expensive to convey petroleum and products
through pipelines than trucking them by road .
He said from the briefing he got from the
inspection of the refineries , they are close to re- opening .
“ In the next one week , we are ready to see
products out of here ” , he disclosed .
Kachikwu said that a lot of the rehabilitation
of the refinery was being done with intensive
manual labour of the staff since paucity of
fund affected the holistic change that is
required in the factory.
He said that the refinery is now aging so one fault comes up after the other even after repair but that would stop when government repairs the plant holistically early next year.
According to him, about 5 .5 million litres daily of PMS is expected from the refinery in the
next few days . Other products to come from
the plants, said Kachikwu “ are AGO , Kero and others . Where we love to be is to have half of the consumption of this country at the refineries at the minimum, which is about 20 million litres . But where we are with the sleepless night I have had in the last few weeks any molecule is significant .
Kaduna will still be doing 2 . 3 million. Let ’s
start from there. And that is doing 60 per cent
performance . This is still an assumption. I will
like to see them getting closer to 80 or 90 . By
the time they time they do that we will be
getting 11 to 12 million litres out of this
place. ”
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