The Minister of State for Petroleum and the Managing Director of the Nigerian National Petroluem Corporation, Dr Emmanuel Ibe Kachikwu, has said that the price of petrol will reduce to N85 per litre in January 2016. He said this while inspecting the Port Harcourt Refinery Company over the Christmas holidays.
He said that he had approved the new price temperate of the petroleum product pricing Regulation Agency (PPPRA) on Thursday 24 Dec 2015,
“Like I said, we have done a modulation calculation and it is showing us below N87. I imagine that if PPPRA publishes it today, it will become effective immediately, but the 1 of January is when we are looking at”
He explained that the price modulation is to help ensure the fluctuation of prices to reflect the realities of the crude oil market.
“Modulating the oil prices will mean that if the price for crude oil goes up, you go up and if it comes down, you come down. There will be no more subsidy following the fraud that has resulted from its operation.”
He further explained that the refineries are aging so one fault comes up after the other but the government has plans to repair the plant holistically early next year, so there will be efficient operations of the plants soon.