The Federal government has said that it can no longer afford to subsidize the Premium Motor Spirit (PMS) following the fraud that has attended its operation, stressing that the product will sell for N85 per litre as from the first day of January, 2016.
The Minister of State for Petroleum, Emmanuel Ibe Kachikwu, disclosed this during his inspection of the Port Harcourt Refinery Company (PHRC), on Christmas day.
The current official price of the product is N87 but it sells for as high as N350 in some states of the federation with the country experiencing more than two months biting fuel scarcity.
Dr. Kachikwu said that the new price template of the Petroleum Product Pricing Regulation Agency (PPPRA), was approved by the Federal government on Thursday, adding that the new price will convince Nigerians that the pricing modulation that the Muhammadu Buhari-led government promised to embark is not a trick.
“We have done a modulation calculation and it is showing us below N87,” Mr. Kachikwu said. “I imagine that if PPPRA publishes it today, it will become effective immediately. But the 1st of January that is when we are looking at.”