Ibe Kachikwu, the minister for state of petroleum resources, says the removal of oil subsidy may not affect the pump price of premium motor spirit (PMS).
Speaking in Abuja on Thursday, Kachikwu said “there is so much emotion around subsidy issues” and the government would not technically be removing subsidy but focus on spending very little on it.
“My focus is that, the federal government shouldn’t spend as much as it is spending on subsidy,” he said. He said the issue of subsidy existence or removal, is no longer business as usual, as the NNPC is now taking an intellectual means of tackling the matter, without affecting the poor.
“You all know that the president has stated it, that in all we do, we must make sure that the poor people are not affected.
“If we could close the amount of product that are smuggled out of the country, the effective consumption of the country cannot be more than 35 or 36 million (litres per day).
“If we take this analysis, we can deliver products today with the price of oil where it is and also sell close to the prices we have today without the need of the federal government to pay subsidy.
“It is not that we have removed subsidy but the application of market forces will enable you to sell products as close to the prices we have today. “Is it going to be between N87 and N90? we will have to get PPPRA to do those templates and at 35 million (litres) we may sell products at N87; by the time we consume 36, we may be selling at N90 or N91”.
THE CABLE
Speaking in Abuja on Thursday, Kachikwu said “there is so much emotion around subsidy issues” and the government would not technically be removing subsidy but focus on spending very little on it.
“My focus is that, the federal government shouldn’t spend as much as it is spending on subsidy,” he said. He said the issue of subsidy existence or removal, is no longer business as usual, as the NNPC is now taking an intellectual means of tackling the matter, without affecting the poor.
“You all know that the president has stated it, that in all we do, we must make sure that the poor people are not affected.
“If we could close the amount of product that are smuggled out of the country, the effective consumption of the country cannot be more than 35 or 36 million (litres per day).
“If we take this analysis, we can deliver products today with the price of oil where it is and also sell close to the prices we have today without the need of the federal government to pay subsidy.
“It is not that we have removed subsidy but the application of market forces will enable you to sell products as close to the prices we have today. “Is it going to be between N87 and N90? we will have to get PPPRA to do those templates and at 35 million (litres) we may sell products at N87; by the time we consume 36, we may be selling at N90 or N91”.
THE CABLE
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