The Minister of State for Petroleum, Dr. Ibe Kachikwu has finally appeared before the members of the House of Representatives after a rowdy session earlier today prevented him from appearing before the house.
After all the commotion and rowdy session, Minister of State for Petroleum, Dr. Ibe Kachikwu, has told members of the House of Representatives that the Federal Government had no other option than to increase the price of fuel.
According to him, the hike in petrol was neccessary because of the diminished foreign exchange supply situation in Nigeria, which forced marketers to stop importation and imposed over 90 per cent supply on the Nigerian National Petroleum Corporation (NNPC) since October 2015.
According to him, the government has no provision for subsidy. He said there was no provision for subsidy in the 2016 Appropriation Act and as at Monday, the fuel price of 86.50 gave an estimate subsidy claim of 13.7 Naira per litre, which translates to 16.4 billion Naira monthly.
The minister also said that as a result of significant decline in government’s foreign exchange revenues and renewed sabotage and pipeline vandalism in the Niger Delta it was necessary to increase the price of fuel.
The NNPC would no longer resort to federation barrels and would endeavour to meet its obligation to pay FAAC 100 percent of its entitlement from the 445,000 barrels per day in the coming months.
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