Petrol May Sell Above N145 – Dr Ibe Kachikwu

Petrol May Sell Above N145 - Dr Ibe Kachikwu

The Minister of State for Petroleum, Dr Ibe Kachikwu has told the Senate committee that the pump price of the Premium Motor Spirit (petrol) may sell above N145 per litre.


Kachikwu appeared before the Senate committee that is investigating the scarcity of fuel on Thursday where he posited that the Federal Government might eventually allow the oil marketers to sell above the current N145 per litre.


Before now, Kachikwu and other government representatives, including Abba Kyari, the Chief of Staff to President Muhammadu Buhari had met with the marketers but the meeting ended in deadlock.


The marketers had requested that the government pay them N800 billion debt to enable them import petrol at the current Dollar/Naira foreign exchange rate.


According to Kachikwu, the N26 differential between the current pump price and the landing cost of the commodity was caused by the rise in the exchange rate.


He said that Naira was 285 to a dollar when the pump price was raised to N145 per litre and that the rate would have to drop to N240 to a dollar for marketers to be able to actually sell at the official price (N145 per litre).


As a matter of fact, the minister said that to enable adequate supply of the fuel, independent marketers might be allowed to import and sell at the price that would give them profit.


“This model is being considered to regulate the pricing of petrol so as to ease distribution chain,” he said.


President Muhammadu Buhari has disagreed with the marketers on any increment, calling on the minister and the Group Managing Director of the Nigerian National Petroleum Corporation, Dr Maikanti Baru to use their expertise to maintain the status quo.

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