Federal Government will not remove fuel subsidy, Says Kachikwu

Federal Government Will Not Remove Fuel Subsidy, Says Kachikwu…See Details

Contrary to previous reports that the fuel subsidy program will be scrapped next year, the Minister of State for Petroleum has revealed the real plan of the Federal Government.

Minister of State for Petroleum, Ibe Kachikwu

The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu yesterday said  the Federal Government will not scrap the Petroleum Support Fund (also known as subsidy) but will, instead, embark on price modulation, The Nation reports.

The minister denied saying  the price of petrol will go up in January.

While addressing a press conference in Abuja, Kachikwu said the Nigerian National Petroleum Corporation (NNPC) will alongside the Petroleum Product Pricing Regulatory Agency (PPPRA) sit to determine the new template to arrive at a new price which will be subject to quarterly review in line with the price of crude oil.

He explained that government is planning to use N87 and N97 as a ceiling for the price modulation at every given time instead of fixing the fuel price without basis.

Kachikwu said: “I did not say that refine product will sell N97 next year. That is not what I said. I said between a bound of N87 and N97. We are going to look at the prices.