PETROLEUM INDUSTRY ACT: No Increase In Petrol Price — FG
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Minister of State for Petroleum
by Our Correspondent
ABUJA: The Federal government has assured the citizenry that price of Premium Motor Spirit (PMS) otherwise known as petrol will still sell at N162-N165 per litre despite the signing of the Petroleum Industry Bill (PIB) into law.
The Minister of State for Petroleum Resources,Timipre Sylva on Tuesday, August 17th, said fuel price still remained N162 per litre as there would be no immediate implementation of the aspect that covers fuel price deregulation.
His words; “No fuel price increase at least for now. We are starting the implementation of that aspect (deregulation) now. We would do that only when we have put many things in places to cushion the effects on Nigerians.
“Full deregulation would bring hardship and sufferings for Nigerians, though is the best thing to do under the circumstance.’’
He emphasized that the Governors’ Forum was agitating for full deregulation because they knew that was the only way they could get more allocations for capital projects.
The Minister explained that giving the host communities more than 3% fund in the PIA, would scare away investors stressing that the National Assembly and other stakeholders settled for that to attract investments.
According to him; “Everything was weighed before 3% was settled on. It is in our collective interest. If we put the fund at 10%, the oil companies will only add it to their operational cost and that consequence would come back to the country.
“Out of $50 billion oil and gas investments that came to Africa last year, only $3bn came to Nigeria because foreign investors weren’t so sure of the investment climate.”
Sylva assured Nigerians that the federal government would meet with gas suppliers to know why the increase and find ways to bring the prices down.
