Kachikwu Proposes Plural Fuel Prices, Two Other Solutions








MINISTER of State for Petroleum Resources, Dr. Ibe Kachikwu has suggested three possible solutions to end lingering fuel scarcity in the country, one of it; plural fuel pricing.


Dr. Kachikwu told the Senate Committee on Petroleum Downstream that the Nigeria Nationwide Petroleum Company – NNPC, under the plural pricing, would sell at N145 while independent marketers would import and dispense at their own rate.

“What this nation needs is to make sure that the refineries work. It is shameful that after greater than 50 years, we still don’t have working refineries. Promoting crude is like promoting uncooked agricultural supplies. As soon as the personal refineries start working, this shortage problem might be behind us. Earlier than we get there, we’ve 18 months to manage this drawback,” Kachikwu said.

Apart from that, the minster of state for Petroleum Resources also suggested that a special foreign exchange price modulation as well as special tax consideration for independent oil marketers to reduce their financial burden.

“Is there a option to grant tax holiday for them? Government can look into the taxing system. If they do this, marketers could have extra funds to import products. Potential of getting a plural pricing system? That’s, NNPC retailers can promote at N145, while unbiased marketers can import at their price and promote at their own fee. Till we cope with this challenge, we won’t get out of the issue.

Lastly, Kachikwu asked for a better border policing, saying that since it was more lucrative to sell PMS in neighbouring countries, marketers will likely divert their products to those places.

“We now have not been capable of cope with the difficulty of border policing. It is nonetheless more lucrative to sell this product outdoors the country. I’m proposing that trackers be placed on vans leaving the depots. That’s one strategy to cope with this concern.”



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