Skip to main content

Kachikwu Talks On Solution To Fuel Scarcity

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, believes the major solution to the fuel scarcity challenges in the country is for Nigeria to fix its refineries.

Kachikwu gave the recommendation today during a public hearing convened by the Senate to investigate the fuel scarcity that hit the nation in the last few weeks.

He emphasised that Nigeria cannot run away from the fact that working refineries would go a long way to resolve fuel crisis and prevent further occurrence of the hardship the people faced during Christmas and New Year celebrations.

The minister, however, informed the lawmakers that the Ministry of Petroleum and relevant agencies were looking at an 18-month emergency period when they would need to address the pricing issue of the products which was at the centre of the recent fuel crisis.

According to him, the difference between the 170/171 naira landing cost of Premium Motor Spirit (PMS), also known as petrol, and the 145 naira actual cost needs to be addressed.
Kachikwu opined that the difference made the importers of petroleum products to hands off from the importation of fuel as they felt they were not making profit.

He, however, proposed solutions to address such gaps and further recommended some models to address the pricing issues.

One of the recommendations was working with the Central Bank of Nigeria (CBN) to fix an exchange rate of N204 to a dollar for importers, which will enable them to sell petrol at N145.

The other was the ‘plural pricing system’ which will enable NNPC stations to continue to sell petrol at N145 while private importers sell at a price profitable to them.

Senate President Bukola Saraki had directed the Senate Committee on Petroleum Resources (Downstream) to cut short its recess and urgently convene a meeting with stakeholders in the petroleum industry.

Dr Saraki gave the order in December 2017 in a bid to find a lasting solution to the fuel crisis and the untold hardship it was unleashing on innocent Nigerians.

Those present at the meeting are members of the Senate Committee, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, as well as representatives of trade unions in the oil and gas sector among others.

Comments

Post a Comment

Popular posts from this blog

Hurricane Hits Texas, One Person Reported Dead

Hurricane Harvey hit Texas as a Category 4 storm on Friday, battering the coast with 130-mph winds and torrential rain. It was the strongest hurricane to hit the United States in more than a decade leaving a massive destruction, loss of electricity, wrecked buildings and has so far killed at least one person. Scroll down to see more pictures of the incident:
Post a Comment
Read more

Kenyan Law Court dismisses case of man seeking compensation after his wife eloped with another man from hospital

  A lawsuit filed by a man seeking to be compensated by St Mary's Mission Hospital in Kenya for allowing his wife to leave the hospital with another man after giving birth, has been struck out by a law court.    The appellant had sued the St. Mary's Mission hospital at Kakamega law courts in 2020 seeking general damages from the facility on grounds that the hospital had discharged his wife and allowed her to leave with another man. After delivering and at the time of discharge, the wife of the appellant claimed he was the baby's father.   The court of appeal judges Patrick Kiage, Mumbi Ngugi and Francis Tuiyott sitting at the Kisumu Court of Appeal, empathized with the man, but disagreed that he (the appellant) be compensated by the hospital for not detaining his wife.  They upheld the lower court's judgement which added that there's no remedy that lies in the law for such grievances.   Kiage said;   "I agree that if a man takes the woman he loves to t...
Post a Comment
Read more

Togo prime Minister Komi Klassou resigns

Togo’s prime minister and his government have resigned, the West African nation’s presidency said late Friday. President Faure Gnassingbe congratulated prime minister Komi Selom Klassou and his team for their “economic, political and social efforts and the encouraging results despite the health crisis around the world”, a statement on the presidency’s official website said. Togo has been due for a political reshuffle since Gnassingbe was reelected in February for a fourth term in office, but changes were delayed by the coronavirus pandemic. The president’s election win, which came after a constitutional change allowing him to run, extended more than a half-century of dynastic rule over the former French colony by the Gnassingbe family. The victory was disputed by the main opposition challenger, who has faced official harassment in the wake of the vote. The president has led the country of eight million people since taking over in 2005 following the death of his father Gnass...
Post a Comment
Read more