We will not increase fuel price, Kachikwu says after meeting Buhari

FILE PHOTO: FUEL QUEUE AT A FILLING STATION ON HERBERT MACAULAY WAY IN ABUJA ON MONDAY (16/11/15).
FILE PHOTO: FUEL QUEUE AT A FILLING STATION ON HERBERT MACAULAY WAY IN ABUJA ON MONDAY (16/11/15).

After a closed door meeting with President Muhammadu Buhari, Nigeria’s Minister of State for Petroleum, Ibe Kachikwu, said the government has no plans to increase the price of petrol.

Mr. Kachikwu’s statement comes a day after former Group Managing Directors, GMDs, of the state oil firm, NNPC, advised the government to increase the price.

The former state oil chiefs argued that the current price cap of N145 per litre of petrol was “not congruent with the liberalization policy.”

The removal of the cap under a liberalised market environment would allow marketers of petroleum products to sell at a comfortable price based on factors such as the exchange rate and international crude price. With the Naira exchange rate going down by over 50 per cent to about N412 since the current petrol price was fixed, approving the recommendation would have meant Nigerians pay more for petrol.

While addressing journalists at the State House after meeting the President, Mr. Kachikwu indicated the government would not heed his predecessor’s advice.

The minister, who handed over as GMD of the NNPC to the current incumbent, Maikanti Baru, said the government had no plans to increase the price.

“Have you seen any memo to that effect?’’ he responded when pressed on the matter by journalists.
The minister was accompanied to the meeting with the president by Mr. Baru who also said the government has no plan to increase the price of petrol.

“There is nothing like that,” he said.

Both men referred journalists to the Petroleum Product Pricing and Regulatory Agency, PPPRA‎.

PREMIUM TIMES had reported how the PPPRA also rejected the advice to increase fuel price.

While stating the government’s response, the acting Executive Secretary of PPPRA, Sotonye Iyoyo, said the proposal was the personal opinion of the former state oil chiefs.

“If it was a recommendation, that is what it is – a personal opinion. I’m not aware government is planning any fuel price increase. We are in a liberalised market already,” the acting Executive Secretary of PPPRA, Sotonye Iyoyo, said.

Buhari’s objection

Although the two oil chiefs did not provide details of their discussion with the president, the issue of petrol price is believed to be the main topic of discussion.

Mr. Buhari had been reluctant to increase the petrol price from N86 to N145 cap in May despite the hard biting scarcity of the product that left Nigerians queuing for days to get it. The scarcity persisted mainly because marketers refused to import the product saying it was not profitable to import and sell at N86.

The marketers have again called for an upward review of prices.

A senior official of the retail arm of the NNPC, who sought anonymity as he was not authorised to speak to journalists, narrated how the president conceded to the price increase only after so much pressure.

“Kachikwu threatened to resign if the president did not agree to the increase then” he said.

“I’m not sure the president will approve any such increase anymore, especially with the current economic situation,” he said in reference to Nigeria’s current economic recession that has seen tens of thousands of people lose their jobs, companies shut down, and states unable to pay salaries.

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  • Akins

    NIGERIANS are in suicidal mode. President Buhari should meet their wishes. Nigerians prefer to die
    than to protest anything that President Buhari does. They pledge their lives. Why save them from
    mass suicide from economic poverty if they don’t ask to be saved? Increase petrol price to 220
    per litre after the Sallah holiday and devalue the Naira to 500 to one dollar. That’s what these
    people want and desire for themselves. Why help them, unsolicited, to avoid invited tragedy?

    • Omoba1

      My brother the day Nigerians will protest, I don’t think there may be another country to contain the bottled anger. The protest may even spill to Ghana.

      • aisha ani

        Gba be !

      • UOU

        To ghana, that would be catastrophic, you mean by benin and togo or sweep all of them till ghana? you may be right it get to europe if care is not taken, on that day

  • Omoba1

    A further increment will result to an overbearing level of hardship and like Kemi use to say in her fake UK accent – an increment in cost push inflation. The country may not be able to take another fuel hike. Please let the marketers bear with us and pray that Emefiele and Kemi trial by error economics fixes the issue

    • GG

      Why is Kemi accent fake? She’s lived in England all her life. She had her education their.
      Do you have a personal problem with her if I may ask?

  • Otile

    Utangirma Allah.

  • Martins

    They have increased electricity tariff by 45% despite a court order, they increased the pump price of fuel already despite drop in the cost of crude oil globally, they equally plan a further hike in VAT and a new tax on telecom subscribers. This inept and incompetent administration has no positive plan for the people other than taxing the poverty stricken populace, while subsidizing cattle rearing business. We will endure until 2019.

  • persona

    The same oil chiefs who saw no need to improve or build new refineries have now found the pleasure in increasing the pains of the ordinary citizens by saying the cap be removed for them to sell at a comfortable price…are Nigerians comfortable enough to pay? These elites are the problems and until we begin to address them, the nation will be on bended knees. Had they been investigated, I can bet most of them would be guilty of one infraction or the other. Buhari needs to move the investigation into the NNPC and oil industry as part of the needed resolution of the ND issues.

  • Arabakpura

    Kachikwu is a double agent; he runs with the hare and hunts with the hound!

    • We dey hear

      “When Muhammadu Buhari clinched victory in Nigeria’s presidential elections in March,

      stocks soared as investors looked to the former military ruler to reverse decades of

      economic mismanagement and policy inertia. Now, hopes have fizzled in his ability

      to turn around Africa’s largest economy and oil producer.”

      ……………………..BLOOMBERG

      (January 19th, 2016)

  • ‘Excelsis’

    @disqus_qjvnqdDXoX:disqus

    The lies and lies of BUHARI on petrol price

    President Buhari’s government has told too many lies to seek exoneration
    for its incompetence and has now ended belly up, not so much dubious as
    utterly useless to resolve the economic recession the government stoked by
    itself; by unleashing the twin price vectors of devaluation and petrol price hike,
    to throw Nigeria into severe inflation today, on the back of two quarters of
    Nigeria’s negative international trade deficits by July 1st; amounting to
    economic recession.

    The Buhari government then lied that the immediate past government is to
    blame for all those ills; whereas, the Jonathan government did not instruct
    Buhari to choose devaluation as a policy option simultaneously with petrol
    price increase to send general price levels to the roof. President Buhari took
    that policy option all by himself.

    There were alternative policy options. thirdly, Buhari government lied that
    crude oil price fell from 100 dollars plus but that had happened before he won the
    December 2014 APC primary as presidential flag bearer. Crude oil was hovering

    at 55 to 65 dollars per barrel throughout the 2015 presidential campaign as the
    recent fact relevant to Buhari’s now shambolic presidency. It’s sheer nonsensical
    cover up of incompetence to go many years back to cite historic oil price peak as
    the cause of Buhari’s present policy blunders.

  • No Comment

    “Even one measure which BUHARI could have delivered alone –

    notably, his assets declaration – he has stalled.”

    ……….Eleanor Whitehead

    [Lagos based correspondent of The Economist of London]

    [2nd September, 2015]

    • revolutionary2

      NIGERIANS, NIGERIANS, NIGERIANS, RISE FROM SLUMBER AND KILL YOUR TREASURY THIEVES,

      IF YOU WANT A GOOD COUNTRY FOR YOURSELVES AND YOUR CHILDREN, BECAUSE FOR SO LONG

      AS TREASURY THIEVES ARE FREE AND SAFE, YOU ACCEPT THEFT AS THE MEANING OF SUCCESS.

  • favourtalk

    Good one from the presidency

  • Austine

    APC kindly please be advised that you can generate funds from licensing of atleast 3-GSM licenses afresh just like OBJ did. And stop all these wickedness of 9% Charge on data and voice on Nigerians. The competition will cause improvement of GSM services across Nigeria. You guys imposed 50-naira on every 1000-naira transactions as if that is not enough there is this rumour of fuel increase. Like we know in Nigeria that rumours are always leaked intentions of the government… Stop denying anything…

  • GEJ FOREVER

    PRESIDENT GOODLUCK JONATHAN: ON THE CHOICE BEFORE NIGERIANS IN THE 2015 PRESIDENTIAL ELECTION

    “The choice before Nigerians in the coming elections is simple: A choice between going forward or going backwards; between the new ways and the old ways; between freedom and repression; between a record of visible achievements and beneficial reforms-and desperate power-seekers with empty promises”

    For the avoidance of doubt …. President Goodluck Jonathan is still the legal and constitutional President of the Federal Republic of Nigeria ….. Buhari was not qualified to be on the Presidential Election Ballot before of his false WASC claim, WASC forgery and blatant Perjury.

    • vagabonds in power

      President Goodluck Jonathan

      President Goodluck Jonathan on Tuesday said he will continue to do his best in solving Nigeria’s challenges, but said he does not expect praise while still in office.

      Mr. Jonathan said he understands that his current actions and achievements will only be justified and applauded after he had left power

  • vagabonds in power

    1 We are disappointed with those that voted, canvassed for or aided Buhari’s emergence as the President of this Country. Yes, US and Britain supported him because they prefer a pawn, as a matter of fact, a man without any clue of the game theory. Even Abacha understood better, God bless his soul, because Buhari has made him a saint. Nigerians were better off, in spite the numerous sanctions and embargoes placed on Nigeria, during Abacha’s era.
    1.1 All of a sudden, in what appears to be a spell on some of us, we lost every sense of our past history. A man who in his name, some innocent people were brutally killed including youth Corpers, when he lost the presidential election of 2011. Maybe someone should show me a video clip of him visiting the deceased families. The blood of those innocent people that were brutally slaughtered are probably not happy with the rest of us, especially the Buharists. Even GEJ is not exempted for not safeguarding the interest of all of us. We forgot to honour the dead and buried them in mass graves to hide the fact of their brutal murder. Flashback to the Corper that was crying on the phone with her parents in a Bauchi State Police Station while she was being brutally murdered.

    Gen Buhari left power in 1985 through a coup against his incompetent Satanic Government and since then, the man retired to his Daura Village in Kastina State. He was never seen in any seminar, convention or workshop where issues concerning governance were discussed. No wonder he appointed only those thieves he ate tuwo and drank fura d nunu with for years. Nepotism, Segregation and other undemocratic vices are playing out in a supposedly democracy.
    However, one of his most reported movements across the region, heading towards the southwest was only when he led the Miyeti Allah (The Cattle Herdsmen Body) as one of the patrons to protest the killing of Fulani herdsmen in Oyo State. And apart from his commitment towards the welfare and growth of Islam and his concern for his Fulani political hegemony in Nigeria, none of us here alive can point out Buhari’s nationalistic activities since he was chased out of power in August 1985.Yet we elected a maroon like him as president. This is a man in charge of all us. With him as the President, we are now officially worse than those living anywhere in the World. Before it was okay to say suffering and smiling but now, Nigerians are suffering and dying without smiling.
    Lastly, if you are still supporting Buhari, may your life be as depressed as Nigeria.

    Join Team Restructure Nigeria. We must restructure Nigeria so as to get the best from all the 6 regions.

    Nnaji Asiegbue.

  • wode

    Whether this is flying of a kite, testing the water or whatever, let nobody contemplate any hike in petrol pump price. It would be catastrophic doing so. No doubt, people would revolt. So, let Government take other measures to address whatever challenges that we may be facing.

    • vagabonds in power

      Ask the apes in APC to tell Nigerians how much they have so far saved from the increase in the price of fuel—Jonathan used the little he got to repair roads——but Buhari has not been able to tell Nigerians what he did with the 2015 and 2016 budgets–all they are doing is to spend trillions to re–commission rail ways that were commssioned by Jonathan from Kaduna to abuja and lagos to Ibadan–yet the same Nigerians who are being duped by the cursed soul of the fulnis and Yorubas are here singing the praise of bingo buhari—–what a shame————————let my people go instead of the rule of another fulani in PDP

      • Emeralds

        NO NIGERIAN HAS SEEN ANY THINKING MINISTER INSIDE BUHARI’s CABINET;

        OR, HAS ANY NIGERIAN SAID ANY MINISTER TODAY IS GOOD ON THE JOB.

        THAT SAYS ALL THERE IS TO KNOW ON WHY BUHARI REGIME IS A SHAMBLES.

      • True Cross Riverian

        @ vagabonds . What do you mean by Cursed souls? . You must be a bastard with no parents. I’m sure you are igbo. No wonder Nigerians despise igbos.No wonder we Niger Deltans merely tolerate you guys with arms length. The yorubas and hausas are cursed , but you stay in their Land to do business. I’m sure some noble igbos will despise your post. You Igbos are the problem of this country. Check the history of Nigeria. Silly little child

        • Iko mmiri

          Stup!d Nigerian imbecile

  • Ogom

    “Kachikwu threatened to resign if the president did not agree to the increase then” he said.

    Now, this is someone with integrity, unlike his brother at the CBN.

    • Uduak Etinan

      @disqus_dxdYkW7rwg:disqus

      Overall, i think this President Muhamadu Buhari
      is a mistake of the head by his stalwarts – including Bola Tinubu, Wole Soyinka
      Festus Keyamo and the phalanxes of hired columnists in The Punch newspaper –

      who simply didn’t; and still don’t understand that knowledge is the first requirement
      in electing the leader of a presidential democracy. That gross error was forced on
      the mass of the incautious and half-literate Nigerian populace.

      The result today is
      a driftless Nigeria getting thrown apart into shreds; like a failed state.
      Buhari may still turn out to be Nigerians’ worst mistake. He is legally entitled
      to three more years of messing notwithstanding that partisans and neutrals in
      Nigeria are already choking to death under the grips of Buhari’s mostly ignorant
      policy decisions and omissions, chequered by flip-flop on visceral opposition to
      devaluation but which Buhari later hoisted as his current article of faith. The same
      somersault will still occur with petrol price hike after this calmly anodyne assurance
      to the opposite.

      • Ogom

        You’re right, the fuel price will go up, but not before the lengthy queues return and scarcity bites. Then Buhari will learn he can’t command people to sell below cost. He will also realise he doesn’t want to go back to paying fuel subsidy, especially with diminished foreign reserves. The prospect of running out of money will scare him and he will ‘reluctantly’ allow marketers to determine the selling price of fuel for themselves.

        I believe the same process will also play out in the forex market. Buhari doesn’t understand economics, but he will have to learn the hard way (unfortunately for us).

        • blueeyedkitten

          i hope you’re not one of those blaming this government for this ecnomic situation? are you?
          because everything the president was asked to do(deregulation and devaluation – which were responsible for our current economic crunch), he did. now, how does he not understand economics here? those advice were given to him by the economists(including you probably), and he adhered, didnt he?
          the president knew if he took those decisions(which were quite right in my opinion), the poor masses are going to suffer…and they are rightly suffering as result of those decisions. this poor masses are now blaming the government on one hand, and some of this hypocritical economists who suggested who toe this route, are also blaming him on the other hand.

          • Otile

            Then blame the devil because nobody can blame Buhari.

          • Ogom

            Too little. Too late. Poor results.

            The buck stops at Buhari’s desk.

        • front man

          Nonsense

          • Ogom

            Which part?

      • front man

        Trash your brain need to be examine

    • Otile

      Or like the moron Kemi at the Ministry of Finance.

      • Ogom

        In fairness, Kemi has an obsession with “leakages” that could be useful to this government.

        She shouldn’t be fired, but demoted to Junior Minister in charge of Ghost Workers (or something). Then someone else with a more strategic vision for the economy can be brought in to take over her current role.

        She’s kind of like an accounts assistant, but what we need is a finance director.

  • Otile

    I miss Abu Qaqa.

  • Tamuno-Opubo Cookey-Gam

    They’ve come again. Allow this price to float. If fuel had been allowed to float, there would be no choice but to allow the currency to float and all our money troubles would be gone. Price may be high but supply will remain. As people reduce their use of these goods (fuel and dollars), price would go down again.

  • front man

    Nice 1 ibe kachukwu