New Subsidy Policy to be Unveiled Soon - Petroleum Minister, Ibe Kachikwu Gives Details

Posted by Odinaka on Wed 11th May, 2016 - tori.ng

The Minister of State for Petroleum Resources on Tuesday said in the next few days, the federal government would unveil new policy to address the problem of fuel subsidy in the country.

Ibe Kachikwu (middle)

Speaking during a town hall meeting in Kaduna, Minister of State for Petroleum Resources, Ibe Kachickwu, on Tuesday, said in the next few days, the federal government would unveil new policy to address the problem of fuel subsidy in the country.

The minister who disclosed that the introduction of price modulation had helped to stabilise the problem, said that it was necessary for the country’s oil sector to reflect global pricing of the product.

"We are coming up with a policy in the next few days that will allow us develop the price modulation that allow us swing our price along with international pricing.

"We are now transiting into fuel modulating pricing because we do not have sufficient foreign exchange to continue fuel importation we have been doing.

"Therefore, NNPC has to produce about 100 per cent of the product, that is the cause of the scarcity," he said, adding that the NNPC did not also have the logistics and coverage for effective distribution of the product.

Dr. Kachikwu said there was no budgetary allocation for fuel subsidy in the 2016 budget. "The federal government struggled to offset about N600 billion subsidy balance when the administration came into power," he said.

Speaking on the uncompleted Petroleum Institute in Kaduna, he said that the ministry had created a skill learning department to coordinate staff training and the running of its specialised centres in Warri, Lagos and Kaduna.

He added that the department would provide research and training skills needed for effective refining and other services in the oil sector.