Nigeria to reduce petrol price to N85 per litre from Jan 1

The Nigerian Government would on January 1, 2016 reduce the pump price of the petrol to N85 per litre.

The product officially sells for N87 per litre, although it sells for higher prices in some states of the federation.

The Minister of State for Petroleum, Emmanuel Kachikwu, disclosed this to journalists at the Port Harcourt Refinery Company (PHRC), where he spent Christmas inspecting the plant.

Asked when the Federal Government would release the new price template of the Petroleum Product Pricing Regulation Agency (PPPRA), Mr. Kachikwu said he approved the new price for the agency on Thursday.

“Like I said, 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.”

According to him, the new price is below the current N87 per litre and it would now convince Nigerians that the pricing modulation that the Federal Government promised to embark on a few days ago was not a trick.

He noted that following analyses and research, government realized the country could fluctuate fuel price in accordance with the crude oil market fundamentals.

Justifying government’s reasons for scrapping the Petroleum Support Fund otherwise known as oil subsidy, Mr. Kachikwu explained that government could no longer afford to subsidize the product following the fraud that has attended its operation.

He added that it had become clear that government earnings were dipping on daily basis.


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  • NaijaMindOfChange

    Looking for good governances,fine dem in a APC

  • Wilson Eseago

    IF THIS IS TRUE THEN WE ARE INDEED IN A NEW ERA UNLIKE SOME PREVIOUS GOVT THAT GREETED US HAPPY NEW YEAR WITH FUEL HICK .

    • Otile

      You see, under the leadership of Imam Buhari there has been no fuel queue this Christmas season.

  • Dave

    This government, from all indications, seems very competent, with carefully planned policies targeted at improving the quality of life of the masses. We ‘ve never had it this effective planing-wise. I am very positive / optimistic that change is definitely in the offing.

    • abodes_124

      I am not sure if you are being sarcastic?

    • Otile

      You got it, comrade. Things are getting better. Prosperity is around the corner. What else can we say?

  • Clairvoyance

    Since the price of crude oil crashes daily it would be nice to reduce the price of PMS as was done, great move from the government. Enforcement is the key now so we no those trying to sabotage the efforts of government to reposition the country.

    • Rumournaire

      If the product is readily available, enforcement would not be an issue. You can announce any price reduction you like, but if the product is not available, it would mean nothing for the people. Kachikwu has not told us how the product would become readily available such that the fuel queues would disappear.

      • Aderemi Amusat

        The product will be available as importers can bring in the goods without any complementary financial support from FG. You sell and collect your money while FG focuses on regulation

        • Rumournaire

          You imply that the reason the product is unavailable now is that the marketers cannot bring it into the country. But that cannot be true. They have been given allocations to import but none of them is importing. If in fact no subsidy would be needed, then importers would have flooded the country with PMS without waiting for the government.

          When the government stopped subsidy on and completely deregulated the diesel market such that anyone can bring in the product without any “allocation”, competition forced the price down to about N115 now. That is exactly what the government needs to do with petrol. Scrap all these pricing templates and let whoever want to import do so and let competition determine the price. It may interest you to know that worldwide, petrol is cheaper than diesel because diesel has more energy per unit volume than petrol. So if the government dereguulates petrol as it did diesel, the price of petrol would be lower than that of diesel.

  • SAM .A

    Bringing back the much awaited hope , good governance as a catalyst to change . As the government introduce a cut in gasoline price at the pump ,individuals / groups should also be ready to sacrifice to the change , NURTW should reduce their price market women should also cut their price . Change takes place when everybody play their part . it is not only a slogan. Now Government/PMB is taking the lead.

  • Kekedu

    Oga Kachikwu, Please announce deregulation with PPPRA making weekly or monthly announcement of pricing template to guide sellers and buyers; when price of oil drops to $20/Bbl next year as predicted by IMF we get fuel for around N45/liter. However NLC should mechonu when the price rebounds.

  • REDEEM

    Nigeria Will Officially Be Broke In November 2016: As Buhari Borrows N6B Daily In 2016. New Debts Will Take 29 Years To Be Paid back.

    1] Daily Borrowing In 2016: N6Billion.
    2] Weekly Borrowing In 2016: N42Billion
    3] Monthly Borrowing In 2016: N180Billion
    4] Total Borrowing In 2016: N2.19Trillion.
    5] Amount He Borrowed in 2015: $4.3Billion (N1.23trillion)
    6] Debt Servicing In 2016 – N1.3Trillion.

    According to Hope For Nigeria -2016 Budget was artificial inflated to payback those that sponsored President Buhari’s election.

    It defies commonsense that in a recession period, instead of reducing the budget (cutting coats to size) from the N4.7trn we had in 2015, it was dubiously increased to about N7trn.
    Borrowing is about 33% of the 2016 budget. If we add the the loans Buhari collected in 2015 and the cumulative interest, it will take Nigeria about 29 years to pay them back.

    • Ha

      I really like REDEEM. He is uninformed but confident.

    • Buhari4Ever

      GEJ borrowed over $21Bn and looted all of them in addition to $480Bn oil revenue

    • Jimi

      You are uneducated and probably one of GEJ’s wailing wailers. In a recession governments engage in Keynesian
      countercyclical spending to stimulate the economy and create jobs. There is nothing wrong with borrowing if the money is spent to stimulate the economy, create jobs and increase the tax base. With Buhari spending N6 trillion and most of the money going into the economy the country will witness a change in a year given the fact that most of GEJ’s N4.7 trillion was stolen. By the way were you in exile when GEJ presided over this country? Without borrowing Dangote will not be able to finance his projects. The richest countries and companies in the
      world borrow for growth.

    • Basketmouth

      You are not REDEEM(ED) but RETARD(ED). Your conjured arithmetic have no basis in economic common sense and by the way your source is suffering from conjunctivitis.

    • Jimi

      My friend You are uneducated and probably one of GEJ’s wailing wailers. In a recession governments engage in Keynesiancountercyclical spending to stimulate the economy and create jobs. There is nothing wrong with borrowing if the money is spent to stimulate the economy, create jobs and increase the tax base. With Buhari spending N6 trillion and most of the money going into the economy the country will witness a change in a year given the fact that most of GEJ’s N4.7 trillion was stolen. By the way were you in exile when GEJ presided over this country? Without borrowing Dangote will not be able to finance his projects. The richest countries and companies in the world borrow for growth.

      • Rumournaire

        Very well said. Actually, if no one borrowed, banks would collapse. The biggest borrowers are bank’s most valued customers – when the borrowed funds are used to generate more value (= economic growth).

  • REDEEM

    TELL US MORE MORE ABOUT THE 5.6B DOLLARS THAT MRS. MADUEKE LEFT IN NNPC–WHAT WAS THE MONEY USED FOR—WHY BORROW 2.4 FROM THE WORLD BANK WHEN WE HAD 5.6B IN THE ACCOUNTS OF NNPC THIEF BUHARI?

    • Buhari4Ever

      Deri Orbuka, tell us why your aunty Diezani has refused to return to Nigeria but instead opted to be a citizen of Dominica. Let her be bold enough to tell Nigerians that she left $5.6Bn in NLNG

    • NaijaMindOfChange

      Look at dem..enemies of progress

  • REDEEM

    Nigeria Will Officially Be Broke In November 2016: As Buhari Borrows N6B Daily In 2016. New Debts Will Take 29 Years To Be Paid back.

    1] Daily Borrowing In 2016: N6Billion.
    2] Weekly Borrowing In 2016: N42Billion
    3] Monthly Borrowing In 2016: N180Billion
    4] Total Borrowing In 2016: N2.19Trillion.
    5] Amount He Borrowed in 2015: $4.3Billion (N1.23trillion)
    6] Debt Servicing In 2016 – N1.3Trillion.

    According to Hope For Nigeria -2016 Budget was artificial inflated to payback those that sponsored President Buhari’s election.

    It defies commonsense that in a recession period, instead of reducing the budget (cutting coats to size) from the N4.7trn we had in 2015, it was dubiously increased to about N7trn.
    Borrowing is about 33% of the 2016 budget. If we add the the loans Buhari collected in 2015 and the cumulative interest, it will take Nigeria about 29 years to pay them back.

    • Buhari4Ever

      Deri Orbuka, Please go away with your unending misery. Wailing Wailer!!

  • kayode Olufade

    what will make this perfect is the availability of the product. Without subsidy every importer will have a different price tag to its product. how government will regulate that will be interesting to see

  • Lanre

    Again addressing an uneducated, largely illiterate populace. What is the price of Crude Oil today? Why should the consumer be paying the same price for petrol when a barrel was selling for $80.00 and now that it is down to the Mid 30’s? But of course we are talking about Nigeria where the leadership is composed of feudal lords who are doing the populace a favour.

    • blow fissh

      Mr. So Literate and very Educated, did you miss this part of the article?

      “He (Kachikwu) noted that following analyses and research, government realized the country could fluctuate fuel price in accordance with the crude oil market fundamentals.”

      FYI: It means price will vary per world market.

  • 9JAS SUFFERING AND SMILING

    ON THE EXTRAVAGANT FIRST LADY.
    from Chukwudi Iwuchukwu, Abuja.

    We were told during the campaign that the Office of the first lady is unconstitutional and if elected, the wife of the president wont be entitled to use Presidential Jets for her personal use and the office will be scrapped by the President

    Nigerians believed and voted for APC

    Ever since then, presidential town criers and APC bloggers have been regaling us with stories how the First lady flies commercial since her husband took over

    Surprisingly and a departure from that promise, The first lady hosted some group of APC bloggers last night at Aso Villa to a lavish reception and we were not told who funded the party in this hard time and under which budget the money came out from because her office is unconstitutional, meant to have been scrapped and not entitled to any budget or funding

    As If that is not enough, here is Aisha Buhari arriving Maduguri Borno on a Presidential jet earlier today and I was told she is in the state on an official visit as the First Lady of the Federal Republic Of Nigeria–WHAT A SHAME

    So much for an office that is meant to be scrapped when the new government took over as we were promised during the campaign. – Hope For Nigeria.

    • kinsly

      Mumu. Is that the topic of this write up?

    • Eniola Bibilari

      btw the presidential fleet is meant for the president and his family.

  • Du Covenant

    The only permanent solution to making Kaduna refinery work is to fish out the saboteurs within and send them home!. The fact of the matter is, there are people who are determined to see that Nigeria does not work and have infiltrated every bloody place to destroy everything of goodwil. Nigeria is not the only country with crude oil, and one of the easiest to refine yet we cannot do just that with the over 170 million brains?. Something is defenitely wrong with this picture!.

  • Kay

    I was about to say exactly the same thing.

  • tuby NY

    Very ultra sensible gov’t I said!! Fuel subsidy was quietly remove 4 2016 budget year wthout no noise or angering d citizens cause it was sensibly DONE. Yes, crude oil price is drastically down which helped ease d decision — but it takes a very sensible, determined n knowledgeable gov’t 2 achieve this.

    This subsidy issue has bn nthin but A LONGTIME cancer that has bn badly ailing this country (Nigeria) d past 10/15yrs yo — Kudos to PMB n his team. I’ve said it b4 n I still strongly believe IT.. I don’t think Nigeria wuld look or feel d same in a year or so under this “qualified n determined, n President at right time” PMB yo..

  • Jon Rhoma

    There is no problem. You only have to go to a petrol station where you can get it to buy at N85 even if you’ve to drive from Maiduguri to Uyo to buy it.

  • Vardy Messi

    “Justifying government’s reasons for SCRAPPING the Petroleum Support Fund otherwise known as oil SUBSIDY, Mr. Kachikwu explained that government could no longer afford to subsidize the product…”

    SO THEY ARE SCRAPPING THE SUBSIDY AFTER ALL??
    BUT WHEN KACHIKWU SAW LABOUR BRACING FOR A SHOWDOWN, HE QUICKLY DENIED THE INCREASE TO N97..AND SAID WHAT HE MEANT WAS ‘PRICE MODULATION’ NOT SUBSIDY REMOVAL!
    Today, he is admitting scrapping subsidy!
    WHEN JONATHAN REDUCED PUMP PRICE TO N87/LITRE, SAME APC PROPAGANDISTS SAID IT SHOULD HAVE BEEN REDUCED TO ABOUT N50/LITRE! NOW WITH FURTHER CRASH OF OIL PRICES, IT MEANS THE PUMP PRICE SHOULD BE BELOW N50/LITRE BASED ON APC’s PREVIOUS CLAIMS.
    SO WHY THE HE*L ARE THE ‘REDUCING’ IT TO ‘ABOUT’ N85 INSTEAD OF ABOUT N40/LITRE???

    Hahahaha! Really all I feel is pity for the e-SYCOPHANTS lying to themselves above.
    Lol!!

    • Eniola Bibilari

      actually, i think it makes sense… they were claiming it could have been reduced to about N50 because oil prices were slumping while ALSO being subsidized by the government. Now oil prices are low as well and subsidy is being scrapped completely and gas prices would still be just slightly lower than N87…i’m not arguing for either side tbh i’m just saying APC’s reasoning makes perfect sense.

      • Iyobosa Iy

        Hello Eniola, can u remember ur post about a year ago when u said APC’s reasoning on an article on fuel reduction makes perfect sense? It’s now being sold for 145. Do u still think it makes perfect sense?

        • Eniola Bibilari

          Hello Iyobosa, yes it still does. As i tried to explain before..i’m not arguing for APC, what i said is that like the rest of the world, market forces determine market prices. fuel prices have gone up everywhere in the world because the price of oil went up. This should particularly be a good thing for Nigeria because it means our oil revenue went up but unfortunately because of the recession, we may not feel this for a while. Don’t worry though..it will get better…it’s economics…it’s tried and trusted.

          • Iyobosa Iy

            My brother no sentiments. APC’S idea make no sense. They wanted power by all means and promised lies. Fashola said then during GEL’s tenure that a government that cannot solve power issues with 6 months is not a serious government. Now this quote is now on him. The first time Nigeria in history ever produced zero watts was during his tenure. The prices of dollar is N520 at the black market. Prices of most things are on the increase every day. The president said it was wrong for government officials to travel abroad for medical care. See him today abroad (I sincerely wish him speedy recovery). He said a president should fly passenger’s plane like every other citizen but he flies private jet. They told u what u wanted to hear during the campaigns but had a different agenda. Look at our economy today. My brother Pls stopped been deceived
            APC as a party have and will always been scam. The party is made up of thieves of different parties in the past including PDP, ACN, etc

      • Iyobosa Iy

        Hello Eniola
        Remember ur post above last year? Do u still think APC’s reasoning makes perfect sense now that fuel is #145?

  • Dr Pat Kolawole Awosan

    The FGN led by president Muhammadu Buhari,is fully in control of the situation with this reduction from N87 naira to N85 naira per litre,with thorough supervision by the Mr Kachikwu,with the support of the security agencies,the new price of petroleum-per-litre would not be remote-controlled by the gas-stations nationwide.

    • Otile

      Babalowo nla Wole Awosan. Do you know that illiteracy stinks? Your illiteracy as well as that of some of your tribesmen stinks to high heavens. How can you celebrate your master’s voodoo economics rejoicing that he has saved Nigeria? Do you think your master has solved anything by this futile exercise? What your master did here is called – artificial price fixing, it doesn’t work. Even the communists can tell you that the only thing that works with global commodity like oil is the market forces of supply and demand. Too bad you and your master never understood economics. With power shifting back to the North Nigeria has suffered technological set back. Since Imam Mohamed took power he has made no mention of technology, and doesn’t have a clue either, his total preoccupation is oil. Too bad.

      • Eniola Bibilari

        Not too sure what you mean by voodoo economics or whatever it is you’re saying but the economics of it make perfect sense. they’re able to offer the price at N85 because of the fall in the price of crude. If it goes back up then obviously the price goes up as well..just like the rest of the world where gas prices fluctuate all the time. The entire point of the subsidy was keeping gas prices for the average citizen low even though the price of crude was high since the country was making so much profit.

    • abodes_124

      Do we take it that fuel subsidy has been scrapped? The country could have saved ourselves o few trillion naira if this had been agreed when GEJs government proposed it. Now that people know they can be incarcerated without regard to court orders or killed if demonstrating there may be protests or demonstrations on this occasion. The salutary lesson here is that ‘strong arm government’ for Nigeria occasionally bears fruit. Sai Buhari .

  • NoSpinEd

    The removal of petrol subsidy must be understood clearly in this sense: If the global market price of crude oil ever goes back up to $100 a barrel, so will the pump price per liter.