Why Petrol Price May Rise To N180/Litre Soon – Kachikwu

The minister of state for petroleum resources, Dr. Ibe Kachikwu has maintained that the selling price for Premium Motor Spirit (PMS) popularly known as petrol may increase to N180 per litre or even more anytime from now.

He hinted on this while he was having his presentation before a joint committee on Petroleum (Downstream) of the Senate and the House of Representatives on Thursday, January 4, on the ground that the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) has before now been bearing the cost of N26 per litre, representing the difference between N171 and the current official price of N145 per litre but can no longer sustain the extra charges.

He insisted that independent marketers would not be able to import the product at the current foreign exchange rate, saying the marketers were able to sell for N145 per litre when the exchange rate was N285 per Dollar. The Naira presently exchanges for N365 per Dollar.

“We now have to go back and find the solution to this problem in order to ease supply gaps and ensure availability of the product at all times,” the Minister said.

Kachikwu, however, proffered three alternative solutions to pump price increase: getting the Central Bank of Nigeria (CBN) to introduce a modulated foreign exchange rate specifically for importers of the product; giving the marketers significant tax adjustments to enable them to absorb the high cost; and a plural pricing system whereby the NNPC would continue to sell at N145 through its numerous outlets while the marketers are allowed to fix their own price.

Other members of the joint committee are Senators Tayo Alasoadura, Mao Ohuanbunwa, Sabi Abdullahi, Foster Ogola, Yahaya Abdullahi, Rose Oko, Philip Aduda among others