FG plans new prices for fuel, as scarcity lingers

 Nigerians might have to pay more for petrol in the days ahead, as the Federal Government, yesterday, disclosed that it would review the price of Premium Motor Spirit, PMS, also known as petrol, next month.

 This came as the Acting Executive Secretary of the Petroleum Products Pricing Regulatory Agency, PPPRA, Mrs. Sotonye Iyoyo, called on the Federal Government to undertake the automation of PPPRA operations for improved efficiency and transparency and also develop a pricing framework to encourage local refining and discourage importation of petroleum products in the long term.

 Speaking during a visit to PPPRA, in Abuja, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, also stated that the present fuel crisis witnessed across the country would end in Lagos and Abuja tomorrow, while it would end in other states of the federation by the end of the week.

Kachikwu also stated that as part of a long term strategy to eliminate fuel scarcity, especially with the issue of sourcing scarce foreign exchange, the Federal Government was considering the privatisation of the petroleum industry, where operators would be allowed to source for funding and run the industry, while government’s role would be felt in the area of price regulation.

On the planned review of petrol prices, he explained that the country had been able to save a lot of money within the first three months of the year, adding that the savings would be used to fund the gap recorded in pricing in April.

He said: “The reality is that in the first three months of the price modulation, our recovery basically enabled us to save quite a lot of money and that is going to fund the gap that we see in April. But for May, obviously, the prices would have to be adjusted to mark the current trends.

 “Our proprietary positions are for two different concerns. As petroleum Minister, my goal is to make sure that the price of crude oil continues to climb, but as NNPC GMD, our goal is to ensure that people buy product at cheaper price. They do not go together somehow. So most time, I try to balance the curve.”

More in VANGUARD