By our reporter/ The federal government on Tuesday assured that the price of petrol will still sell at between N162 and N165 per litre despite the signing of the Petroleum Industry Bill (PIB) into law.
President Muhammadu Buhari on Monday signed into law the PIB act passed by the National Assembly in July which gives legal backing to full deregulation which means oil marketers would now have the power to fix prices based on market forces.
But the Minister of State for Petroleum Resources Timipre Sylva on Tuesday said fuel price still remained N162 per litre as there would be no immediate implementation of the aspect that covers fuel price deregulation.
Sylva said, “No fuel price at least for now. We are starting the implementation of that aspect (deregulation) now. We would do that only when we have put many things in places to cushion the effects on Nigerians.’’
The minister who admitted that full deregulation would add to hardship and sufferings for Nigerians, said “that is the best thing to do.’’
According to him, the Governors’ Forum was agitating for full deregulation because they knew that was the only way they could get more allocations for capital projects.
The minister further stated that the 3 per cent host communities fund in the PIA, is the fairest rate to every stakeholder, adding that giving more than 3 % as host communities fund would scare away investors.
According to him, the National Assembly and other stakeholders settled for 3 % for Host Communities Fund because that is what will attract more investments into 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,’’ the minister said.
Out of $50bn oil and gas investments that came to Africa last year, the minister disclosed that only $3bn came to Nigeria because foreign investors weren’t so sure of the investment climate in the country.
On the hike in prices of cooking gas, Sylva said the Federal Government would meet with gas suppliers in the country to know why the increase and find ways to bring the prices down.
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