Petrol Price Will Drop In Six Months – Ibe Kachikwu

Dr. Ibe Kachikwu

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has promised Nigerians that the fuel of price of Premium Motor Spirit will come down in the next six months.

Speaking this morning on Channels at the Sunrise Daily programme, Kachikwu said the said the move to hike the price to N145 per litre was necessary in order put an end to fuel scarcity in the country.

He said the market dynamics would take hold fast “because there are a lot of Nigerians who are very active, very bullish, very talented in doing this; they just have been prevented by government intrusions.

According to Kechikwu, “As it gets better and it gets to a point where we find that the market has stabilised in terms of supply, we will begin to pull back a bit in terms of determinants for pricing.”

“you will be amazed at what will happen to your N145 price because it will go downwards.”

The minister said as a result of the decline in government earnings from oil, it could not provide foreign exchange for the importation of fuel.

 “We first went on to the issue of the subsidies that we inherited which, by the way, were based on 50 to 55 million litres consumption, and we said the number looked bloated. So, we did an experiment and came to a conclusion that this country doesn’t consume more than 45 million litres a day.”

“Then we came to a second point and said, ‘We are not even going to have subsidy again. We are going yo exit it because there was just too much fraud involved in it.'”

 “So, left with that option, what were we supposed to do? We have struggled. Queues continue to go and they are back. And it will continue to happen unless we address the issues.

“If you free up Nigerians to find sources of funds, they will find those secondary funds. They will import the product; the burden on the NNPC will reduce and the country will have peace and subsidy will go away permanently.”

“I am appealing to Nigerians to please for the first time realise that we are doing our very best. I have together with everybody who is in this government worked night and day looking for solutions.

“We mean well and Nigerians should please trust us. Give us a chance, you will be surprised what will become of your PMS price over the next six to eight months,” he added.