…says cooking gas prices to drop
Federal Government says petrol will still sell at between N162 and N165 per litre inspite of the signing of the Petroleum Industry Bill into law by President Muhammadu Buhari.
On Monday, Buhari assented to the PIB passed by the National Assembly in July.
The President’s assent gives legal backing to full deregulation, giving oil marketers the power to fix prices based on market forces.
Minister of State for Petroleum Resources Timipre Sylva, on Tuesday, however, said price of fuel per litre still remained N162.
He disclosed that the government won’t immediately implement the aspect of the law covering fuel price deregulation.
“No fuel price at least for now. We are not starting the implementation of that aspect (deregulation) now. We would do that only when we have put many things in place to cushion the effects on Nigerians,’’ he assured.
Sylva noted that full deregulation would bring hardship and suffering on Nigerians, stating, “That is the best thing to do.’’
The minister also explained 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.
Sylva, however, said for the FG to continue to subsidy fuel price was “like cutting our faces to spite our noses”.
The minister added that the three per cent to host communities fund in the PIA was the fairest rate to all stakeholders.
He argued that giving more than this to host communities would scare away investors.
He stressed that the National Assembly and other stakeholders settled for the three per cent for Host Communities’ Fund because that would encourage more investors in the oil producing areas.
“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,’’ he said.
Sylva also noted that out of the $50billion oil and gas investments that Africa got last year, only $3billion came to Nigeria because foreign investors were sceptical about the investment climate in the country.
Sylva also said that the Federal Government would meet with gas suppliers in the country to ascertain the reason for the increase and find ways to reduce it.