Dr. Ibe Kachikwu, Minister of State for Petroleum Resources, has said his ministry is working towards maintaining the pump price of Premium Motor Spirit (petrol) at N145 per litre despite significant challenges in the downstream sector.
Kachikwu stated this in Lagos on Wednesday in a keynote address at the Rainoil 20th Anniversary Lecture. He was represented by Henry Ikem-Obih, the Group Executive Director/Chief Operating Officer, NNPC.
He said the ministry would continue to work with the Central Bank of Nigeria to make foreign exchange available to marketers for importation of petroleum products.
“We are also working very hard with the NNPC to reduce some of the charges on products such as the usual five per cent provision on proforma invoices as allowed for ship-to-ship operations.
“We are doing all these to help manage and maintain the current price ceiling of N145 per litre in the face of very significant challenges”, he said.
The minister said NNPC had recorded commendable performance in service delivery, products supply and distribution. He added “but the reality is that the NNPC needs to be run as a business.”
Kachikwu said there will be creation of more jobs and taxes will be paid when 50 per cent or more of products are being brought in by marketers.
“So, we must begin to move the market to a point where private sector operators are more involved. If we achieve that, everybody will compete and have a longer term view of the market from an investment standpoint”, he added.
Gabriel Ogbechie, Group Managing Director, Rainoil Limited buttressed Kachikwu’s notion. He said “at a time like this, the industry stakeholders should come together to discuss the way forward. We are convinced that significant changes are needed if we are to move forward.”
- Bola Kougbe