From London, Buhari increases fuel price to N145

The Buhari’s led government just announced that it has completely removed fuel subsidy. Fuel will now sell for N145 naira a liter in NNPC filling stations and higher (maybe N160 and upwards) in private filling stations nationwide.

This news house had reported that ‘After berating GEJ, Buhari increases petrol subsidy.’ However, the Buhari administration have decided to scrap subsidy altogether pushing price of petrol far above what it sold during Goodluck Jonathan’s days.

Below is a full statement that effected subsidy scrap.

“Following a detailed presentation by the Honorable Minister of State for Petroleum Resources, it has now become obvious that the only option and course of action now open to the government is to take the following decisions:

“1. In order to increase and stabilize the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.

“2. All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.

“Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per liter.

“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel.

“In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.

“We share the pains of Nigerians but, as we have constantly said, the inherited difficulties of the past and the challenges of the current times imply that we must take difficult decisions on these sorts of critical national issues.

“Along with this decision, the federal government has in the 2016 budget made an unprecedented social protection provision to cushion the current challenges. We believe in the long term, that improved supply and competition will drive down prices.

“The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products.

Surprisingly, the same group of persons who initiated the “Occupy Nigeria” protest under GEJ were the same people who attended the meeting were fuel price was hiked. They include Leadership of the Senate, House of Representatives, Governors Forum, and Labor Unions (NLC, TUC, NUPENG, and PENGASSAN).