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Jonathan lowers fuel pump price, in moves to crash kerosene price ahead of election

Abuja – The Nigerian National Petroleum Corporation (NNPC) has initiated a scheme aimed at getting kerosene to consumers across the country at the regulated price of N50 per litre.

This is contained in a statement issued on Sunday in Abuja by the Group General Manager, Group Public Affairs Division, of the corporation, Mr Ohi Alegbe.

Jonathan

Also the Federal Government has announced N10 reduction in the price of Premium Motor Spirit (PMS), also known as fuel, from N97 to N87 per litre.

The Minister of Petroleum, Mrs Diezani Allison-Madueke, made this known to State House correspondents on Sunday in Abuja.

She said the Petroleum Product Price Regulatory Agency (PPPRA) ‘had already been directed to immediately effect the new change from midnight on Sunday 18.

According to her, the change is in view of recent reduction in the global price of crude oil.

‘‘In line with Section 6 Clause 1 of the Petroleum Act?, that it is my responsibility as the Minister of Petroleum to announce that there will be a reduction in the pump price of petroleum by N10, therefore the reduction will be from N97 per litre to N87 per litre, effective as of mid-night Sunday, Jan. 18, 2015.

‘‘In line with this I have directed the Petroleum Product ?Pricing Regulatory Agency and the Directorate of Petroleum Resources to ensure there is strict adherence to this new pricing regime as soon as it takes effect from midnight Sunday Jan. 18, 2015.

‘‘I do hope the entire country will benefit immensely from this reduction in the pump price of petroleum,’’ she said.

The Minister reassured that government would continue to ensure that the volatility in the oil market did not destabilise the reduction in price, saying that ‘‘we think it’s safe? to implement it at this time.’’

Alegbe said the scheme ‘Kero Correct’ initiative’ was also aimed at cutting off the several layers of middlemen who made it difficult for the end user to enjoy the subsidy on the product.

The statement said that the Executive Director, Commercial, of the Pipeline and Products Marketing Company (PPMC), Mr Frank Amego, announced the initiative at a one-day workshop in Abuja.

It said the workshop that was organised by the NNPC was to enlighten some Non-governmental Organisations (NGOs) and volunteers engaged to help monitor the sales of the product at NNPC Mega and affiliate stations across the country.

It quoted Amego as saying that the scheme was aimed at getting kerosene to the Nigerians who used the product as their domestic cooking fuel at the correct price

He observed that though kerosene was the most subsidised product, Nigerians had not been enjoying the subsidy.

He said this was because of the long arbitrage system involved in its distribution and retailing, and diversion of the product by marketers to the construction industry where it was used for blending bitumen.

“The Kero Correct initiative is thus designed to distribute and sell kerosene directly to end users from NNPC Retail mega and affiliate stations across the country at the government-regulated price of N50 per litre to ensure effective control,” he stated.

He said the scheme which would be officially launched soon, would involve the distribution of a total of 1,500 trucks of kerosene across NNPC Retail’s mega and affiliate stations across the country.

This, he said, was to ensure that each consumer gets at least 25 litres of the product over the next three months.