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FG Officially Removes Fuel Subsidy | Says New Price Will Not Exceed N145 Per Litre

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The Federal government has on Wednesday, removed the subsidy on fuel. This was announced in a press release signed by the Minister of State, Petroleum Resources, Ibe Kachikwu.

Read the press release below:

We have just finished a meeting of various stakeholders presided over by His Excellency, the Vice President of the Federal Republic of Nigeria.

The meeting had in attendance the Leadership of the Senate, House of Representatives, Governors Forum, and Labour Unions (NLC, TUC, NUPENG, and PENGASSAN).

The meeting reviewed:

1. The current fuel scarcity and supply difficulties in the country.

2. The exorbitant prices being paid by Nigerians for the product. These prices range on the average from N150 to N250 per litre currently.

3. The meeting also noted that the main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government. As a result, private marketers have been unable to meet their approximate 50% portion of total national supply of PMS.

Following a detailed presentation by the Honorable Minister of State for Petroleum Resources, it has now become obvious that the only option and course of action now open to the government is to take the following decisions:

1. In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.

2. All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources and accordingly PPPRA template will reflect this in the pricing of the product.

Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.

We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.

We share the pains of Nigerians but, as we have constantly said, the inherited difficulties of the past and the challenges of the current times imply that we must take difficult decisions on these sorts of critical national issues. Along with this decision, the federal government has in the 2016 budget made an unprecedented social protection provision to cushion the current challenges.

We believe in the long term, that improved supply and competition will drive down prices.

The DPR and PPPRA have been mandated to ensure strict regulatory compliance including dealing decisively with anyone involved in hoarding petroleum products.

 

43 Comments

  1. TeeA

    May 11, 2016 at 6:39 pm

    Lobatan!
    So it begins…

    • TeeS

      May 11, 2016 at 7:43 pm

      How bag is this ?
      Sorry , how much is gasoline per liter?
      How much of a hike?

    • FasholasLover

      May 11, 2016 at 8:58 pm

      Ofoneh! Did anybody engage anybody before this subsidy yank off? Did anybody occupy Nigeria? Well, change is here ya’all embrace it.

  2. Ouch!

    May 11, 2016 at 6:45 pm

    Finally! Hope it works

  3. Ogochukwu

    May 11, 2016 at 6:47 pm

    Change!!! More untold hardship!!!!

  4. Californiabawlar

    May 11, 2016 at 6:51 pm

    Toh mandela. As I don’t live in Nigeria right now. I have no say. I can’t complain, I can’t support. It’s he who wears the shoes that knows where it pinches…no he got sold the same shoes but is currently wearing another pair.
    All I know in my heart is that I genuinely hope things get better. That the storms pass. I don’t care about who the leader is, not to mention the past president or administration… I just really hope that someone somewhere makes the right decisions and the nation comes out of the financial crisis standing.
    What will the youth protest this time? There’s no Gucci rice and Louis beans in the budget this year fa? God dey (na poor man prayer).

    • nene+

      May 11, 2016 at 8:38 pm

      I wept, my heart sank, the worst has come to Nigeria. It felt like Lucifer has been chased to Nigeria.
      What a timming? what untold hardship? what a time all bad things happening at the same time for Nigerians. Sorry Nigerians my heart goes out millions of you who earn less than N50,000.
      Your i better pass my neighbor gen which makes you happy will function less.

      What are the palliatives provided, is it free medicals , educational, denied N5k per month, tell me Nigeria???

      But you know what? Its good for you….you got what you asked for.
      Trust me some gas stations will sell 200 and above after-all isn’t FX so much?

      You chose Buhari. You got what you needed.Now we will have more beggars, more thieves, more kidnappers,more one chance,more area boys,more pick-pockets, more corruption. as govt has chosen to turn her blind eyes on her people.

      Tell me how a man can survive with 18K minimum wage.

      I tot Buhari promised to pay the subsidy to only people who brought fuel so they don’t pay to corrupt marketers?
      I weep for Nigeria.

  5. December Wind

    May 11, 2016 at 7:02 pm

    What a shame! Just when you thought we’ve seen the worst , they’ll show you that there’s something called “worstest” N145 per litre in a country with unstable power supply … Don’t this corruption have a limit?

    • Nne Umu Boys!

      May 11, 2016 at 7:46 pm

      People like you just weaken me I swear! Did you read the entire statement? Do you even understand exactly why there is economic stand still in Nigeria now? Have you any clue what is going in the country and globally? are you one of those who actually believed Buhari will come and wave a magic wand and vaaam hardship disappears and change comes? The least you people can do is to enlighten yourselves na eh! So that when other countries come on here to read comments they can at least get educated! I have so many things I want to say to you but biko before I sound like a troll let me just end it here.

      Ka December Wind eburu kwala your sense of reasoning ..

  6. pappy

    May 11, 2016 at 7:25 pm

    Lobatan where are all those rams shoutin CHANGE,Change may ass.

  7. Noms

    May 11, 2016 at 7:35 pm

    Okay.
    Hope this new government isn’t trying to give an explanation to the “devil giving you cap and taking your head”adage? Remove subsidy ,buy fuel higher. Manage to get power,increased tariff. I hope when we finally get constant power is will be affordable to everyone not minding social status and earning power.
    I still remember when fuel was N11 Abacha’s regime and there was serious “we nor go gree sef” only that I was too young to know if there was subsidy or not.
    Apart from our leaders being “wicked/selfish/not doing what will benefit the masses most times, we as Nigerians have the acceptance mentality. It’s a good thing to adjust to situations but situation where we have people to hold accountable should be exceptions.
    Can we all come out and say NO enough is enough? This government is just going here and there. The budget has been past at almost the middle of the year and they still claim to implement 100%? allnewsandreports.com/udoma-assures-100-per-cent-budget-implementation/ tomorrow they will come back and say that wasn’t what they said or meant…Daddy Lai Lai (lie lie) to the rescue.
    I believe NIGERIA is a great nation and the Western World have seen our greatest and are scared of what we will become but our leaders are doing follow follow. The eyes of our minds will be opened in Jesus Name…God bless Nigeria and Nigerians. E pain me well well. Sorry for the epistle. I love my country.#datsall

  8. Lindy

    May 11, 2016 at 7:51 pm

    2 schools of thought
    1 – It is so disheartening that we would have long gone past this if today’s proponents of subsidy removal had not opposed the policy four years ago. I hope Nigerians can see clearly how they were fed lies to stir up their anger against Jonathan. It is the way to go, but Nigerians need to ask those who came up with the policy why they resisted the removal four years ago. The APC must apologize to Nigerians, particularly families of those who lost their lives during the subsidy protests. It is the only way of showing contrition for misleading millions of people.

    2 – The circumstances during Jonathan/PDP and now under Buhari/APC are not the same: Jonathan had surplus earnings from crude (at over $150/barrel) to spend on subsidy when he was presiding over his corrupt wasteful govt; while Buhari/APC is only having about 1/4 of such earnings from crude (at about $40/barrel) and clearly do not enjoy the same luxury Jonathan had – there is therefore no cause for APC to apologize because they cannot be blamed for the fall in current crude price and therefore the attendant fall in revenue that could have otherwise sustained such subsidy – rather, the govt should be commended instead for taking this bold step.

    • Ekene

      May 11, 2016 at 8:27 pm

      Those surplus earnings was advised by the then minister of finance to be saved, but Oshimole and Amaechi refused and even sued the federal government untill it was shared. Our foreign reserve is almost non-existing due to this “we must share it” . Oshimole can’t even pay his workers.

      For the supposed benefit of this subsidy to manifest, it will take four years of hardship for a country with structure and little or no corruption. Imagine a structureless nation like Nigeria riddle with institutionalised corruption. I pray we survive this hard times.

      This social change in the present socio- economic Nigeria, will only be get social problems.

    • CovertNigerian

      May 11, 2016 at 10:11 pm

      States sued and the money was shared, but did the courts also order the federal government not to save its share?

    • Mazi Okafor in Baltimore

      May 11, 2016 at 8:36 pm

      Point No.2 is irrelevant.
      I remember when Fashola said that the pump price of petr0l should fall because the price of crude oil has fallen. This is from arguably the most intelligent man in Buhari’s cabinet.
      If we had removed subsidy since 2012, we wouldn’t have to take such a painful step. Even though I supported subsidy removal and still support it now, it is painful to see the APC take a step for which they villified the past president

    • ElessarisElendil

      May 12, 2016 at 12:53 am

      Perhaps that statement was premised on the assumption that we had currency reserves to maintain our currency in the face of reduced crude earnings.

      Why did we have less in our reserves despite historic crude oil prices???

  9. Engoz

    May 11, 2016 at 7:51 pm

    I must have missed something and someone should bring me up to speed if I missed something. I thought the fuel subsidy was removed under Jonathan’s administration. And the APC led opposition demonstrated through the Occupy Nigeria protests for subsidy to be reinstated. The hike in fuel price was reduced from about the same 145 naira to 97 naira due to the protests. The premise for removing fuel subsidy is arguably understandable because having subsidy only ends up enriching the suppliers whether they delivered or not. But why was the APC so against subsidy removal during Jonathan’s administration and then turn around and do the same thing? This is obviously a clear case of sabotage. APC was on a mission to deliberately discredit the sitting government whether the intention of the government was good or bad. Damnnnnn!

    • ElessarisElendil

      May 12, 2016 at 12:55 am

      Democracy 101.

      The ruling party can do no right. Although the argument could be made that GEJ’s administration could afford subsidy, this one can’t. Blame Saudi Arabia and American shale.

  10. Adaeze Writes

    May 11, 2016 at 7:57 pm

    145 naira per litre! This would lead to a hike in transportation, food costs and many other things and worst of all, the country is hard, salaries are not being increased, many companies are letting staff go and many others are slashing salaries. I don’t see any balance here. What is really happening?
    Generator front- no light, the heat is amazingly terrible as even the rains haven’t even been able to cool the earth for more than one day. How can we survive without power? Since there’s no electricity, we have no choice but to resort to generators and now that the prices have gone up, life is going to be pretty expensive.
    What of those who have nothing? Those living below one dollar, those forced into extreme hardship and poverty because yes, this is hardship….this is not what we expected.
    You can’t remove fuel subsidy when things aren’t working in the country….what is happening to Nigeria?

    For interesting stories, visit adaezewrites.com

  11. Jesse

    May 11, 2016 at 8:03 pm

    God will help us

  12. Fola Coco

    May 11, 2016 at 8:04 pm

    We bought it at 180,200,even 300naira. Increasing it or removing subsidy is not the issue,but the same government is owing workers 5months salary.. There’s no power,food is expensive,exchange rate is still high,salaries are not being increased. Companies are still moving and will still move out of Nigeria,people are being laid off,the list is endless. At least improve the lives of the citizens,provide electricity etc put some things in place before removing subsidy on fuel.
    It is well even in the well…..

    • ElessarisElendil

      May 12, 2016 at 12:56 am

      Hold up, I think you’re confusing the Federal and state governments, are any Federal workers being owed??

  13. Time is a Vindicator.

    May 11, 2016 at 8:08 pm

    This is the “”change””? From Jonathan’s policy to Jonathan’s policy? APC is quiet NOW? All the artistes and musicians that were singing in Ikeja are quiet NOW? All the Occupy Nigeria activists, actors, entertainers, actresses, NGOs, Labour Unions, Trade Unions, Nigerians are quiet NOW? Wow. Wow. Wow. I didn’t want Jonathan to stay but all of you who still have consciences and who keep blaming him for everything in Nigeria blameable (when we all know very well it didn’t start with him, and no matter the noise, I, personally, still don’t think any looting and stealing was the worst under him; he just happens to be from a “”minority”” (so-called) group and in the age of social media) ought to repent now and be fair. All the (some really unprintable) insults that were heaped, and are still heaped on this man; the way he’s just used as a convenient scapegoat for everything, honestly, we should fear God. Nobody should read what I am not saying into this comment. I have not said he was/is a saint and all his cabinet were saints. History is bearing witness. We were all witnesses when he tried to do this exact same thing. And we are all witnesses now. On this matter, GEJ has been vindicated; and no one can say otherwise and be right.

    • Wendy

      May 11, 2016 at 8:35 pm

      GEJ is not vindicated. People perceived that his government was frivolous and opposed to making even more money available to him and his cohorts.
      Have you heard the amount of money his cabinet members stashed away?!! What did they need the extra revenue for?
      Please lets be real. Get your head outta the former president’s butt. The circumstances are overwhelming different. And even if all you said are true what does your support for Jonathan do for you today? You have a new president, your economy is down in the dumps. Arab countries don remove subsidies since last year not long after the prices crashed.
      My dear just be constructive in your criticisms and hope for the best. Because at the end of the day, you’re a common man, and you e go pinch pass. Not Jona. Not Buhari. At least not until the next elections.

    • Mama Ijebu

      May 11, 2016 at 9:16 pm

      We never ‘chin chun chin’

      Expenses have increased and income has remained the same. In fact, for some people income has gone down! Has anyone tried to buy tomatoes from the market? I almost fainted at the market 2 days ago.. I wonder what the price will be from tomorrow??

      Baba Ijebu has to do something about review of house allowance o…Yepa! Make I carry paper and biro calculate first… We have to embrace the healthy life style , no eating anyhow…hian!

  14. toti

    May 11, 2016 at 8:10 pm

    Nigeria o Nigeria who will deliver her people from hardship..they av been betrayed by their leaders..wit failed hopes and promises…the people suffer in denial..t the poor becomes poorer while d average becomes poor…corruption and self centeredness as eaten d nation like a cancer. oh God of the universe..the creator of man..d one whi hears d voice of the one crying in d widerness…arise destory dis betrayals..let them eat their own flesh andbdrink dir own blood. come to our resque . heal our land and restore our lost hope and dignity.

  15. Chu

    May 11, 2016 at 8:18 pm

    I believe the fuel Crisis was leading to this. To prepare our minds for paying more for fuel. Who hasn’t paid up to 150 per litre in the past 4 months. Now people will be resigned to paying that amount as long as the fuel is readily available. It’s all strategy. Maybe Jonathan should have borrowed a leaf from Buhari when he wanted to remove subsidy. Now the price of everything will double if not triple. I just want to leave this country. Fantastically corrupt nation.

  16. bruno

    May 11, 2016 at 9:13 pm

    I dont understan most nigerians.
    any time buhari’s government does something stupid the next thing is to start mentioning GEJ.

    wtf does GEJ have to do with anything. his government was terrible, buhari’s government is terrible so pls stop comparing which garbage smells the most. all na garbage.

  17. Honestly speaking

    May 11, 2016 at 9:23 pm

    They have come again

  18. Ojasweb

    May 11, 2016 at 9:43 pm

    Subsidy has been removed unofficially since February because i have been buying fuel at the rate of #150/liter. Now that it is official, my fear is that these devil marketers will start selling well above the approved pump price, We still have many things to fix in this country.

  19. presh

    May 11, 2016 at 9:54 pm

    More untold hardship” desperate measures indeed, yet our senators and governors live a luxirious lifes, and earn plenty of salaries and allowances. what about them volunteering to serve without been paid.
    God help us

  20. NG

    May 11, 2016 at 10:11 pm

    Ordinarily should one complain if a government in sincerity takes policy actions as exigencies of the hour demands? Emphatic ‘no’ is the answer. What with this decision? It is the insincerity of previous actions/reactions that beclouds it. Now we know that added to the numerous problems of Nigeria is also the fact that those who through some good fortune have media-influence capability can undermine the policies of a government and set it up for failure so as to take over political power. It has happened in our time! Shall we not raise a clap to them at their collective infamy? It proved successful after all!

    However, you all murdered sleep when you threw all caution to the wind and allowed yourselves to be led by the nose by self-serving men of equal infamy parading as political leaders in unleashing the worst disrespect and insult on a sitting president. Bad enough, but also working to undermine that government and now expecting all of us to embrace your deceit is an indescribable crime. You have divided the land. You have sown seeds of discord- check out the SS and their reaction. They may not have the strength the rest of us think we have on social media- numbers? Resources? Etc? They however have capacity for violence, at least on oil installations, as their own contribution to the destructive manoeuvrings from all sides.

    The trillions of oil money stolen from the Niger Delta over the years to develop other regions and empower other people groups of Nigeria were pilfered through dummies sold to us as policies for national development which at the end of the day ended up enriching lands far from where the blood and sweat of environmental pollution flowed. They are all saints now and free to keep their loots for themselves and their own and only Jonathan’s administration was corrupt. What confidence do we then have that the money from these general pains will not just flow out for NE dev commission and such-like subterfuges by a president madly in love with his own and ready to do all to access money to repay their blind love?

    Bayelsa is crying of marginalisation. 2nd Niger bridge is becoming history. All focus are on developments far from where the golden geese is forcefully drained of her eggs to nourish the lords and masters of the nation. We live to see where all these leads

    • Ekene

      May 12, 2016 at 12:07 am

      “It is the insincerity of previous actions/reactions that beclouds it”, that’s how we will continue to create unnecessary and unsolicited excuses for the present government. They said they can save us in a jiffy, let them do it. STOP THE SILLY EXCUSES.

    • nnenne

      May 12, 2016 at 12:10 am

      NG… Thanks.
      I wasn’t going to comment but thanks.
      Nice to know that people are following events and people still have conscience! !!

      FAIRNESS is the mother of peace!
      Peace doesn’t just happen, people make it happen. Peace is earned! !
      May God give us a country that belongs to all and he continue to bless us.

    • ElessarisElendil

      May 12, 2016 at 12:59 am

      Pardon me but didn’t Bayelsa get its 13% deriviation (close to 3bn per month), what did they do with it??

  21. baby

    May 11, 2016 at 10:58 pm

    I wish we as citizens would move away from Jonathan vs buhari. This is about us. Even if you bring back Jonathan, things will still be tough. If you used to earn 150k and you’re now earning 50k,your purchasing power will be less. You go hear am except you have serious money saved or you have a side hustle. We do not have savings or side hustle as a nation. My concern is that these marketers will seize this opportunity to fleece people and the prices will never go down. In aba they’re selling 130 per liter. By tomorrow now you’ll see 150 and up. I don’t see this as a good move.

  22. Nunulicious

    May 11, 2016 at 11:22 pm

    As a Nigerian I’m used to hardship and I know the leaders don’t care about me.

    So now you choose to remove the subsidy, that’s more hardship for me. Nothing new. I will survive. I will have heart attack and there would be no ambulance to take me to the hospital or insurance to help with the bills. But i have one question: can i have the f****ng fuel NOW?

    I will work honestly and retire at age 65 without a roof over my head because there was no mortgage scheme for house financing for me but can i have the f****ng fuel NOW?

    I work for 6 hours a day, spend 3 hours commuting for a take home that can’t take me home but can i have the f****ng fuel NOW?

    Is this going to stop the palpitations I have on monday mornings when I see the endless queues bearing in mind there was no queue on Sunday evening? Can I have the fre****ng fuel now?

    is this going to stop the heartbreak I as a medical practitioner feel while treating a 4 year old with 3rd degree burns because her dad had to store fuel in the house since he wasn’t sure when next he’d get fuel? Can i have the freaking fuel now?

    Can I as a 73 year old pensioner not have to wake up at 6am carrying my GENERATOR TANKER to the fuel station only to still be on the line at 3pm waiting for my turn? can i at least have the fuel now?

    I was about 8/9 year old when I first experienced what it meant to queue for fuel. I’m now in the 3rd decade of my life and I’m still experiencing queues. What the heck, can I just get the bl***dy fuel?

    I can moan, groan, wail, tweet, vent and rant but at the end of the day, what I really want to know is Can I just have the ga****am fuel without STRESS?!!!

  23. Fleur

    May 12, 2016 at 1:33 am

    This change is amazing. To the govt of Nigeria, there is something called a balancing act. While economists and all kinds of advisors say removing subsidy is a must have tool for economic progress, doing it at a time when people are being shellacked by the high dollar rate, unpaid salaries, high personal debt, uncommon suffering, etc, shows lack of concern for the well-being of the people. THe president could have waited to at least get payment of salaries steadied before unleashing this new policy. Those women in the market would by now have hiked the price of garri and fish and the keke drivers would now be charging double. Have you seen the suicide rate among our young people? Oh I forgot, the nation is not tracking, so the issue does not exist. Many young people are now committing suicide. GOd, I call upon you, whatever our people have done to deserve this, for the sake of a few who might be innocent and free of sin, save us from the merciless hands of acute deprivation, failed hopes, crushed dreams, uncommon debasement and unbridled imposed worthlessness. Please help the common man dear Lord. All they ever did wrong was trust in and vote for people.

    • Mz Socially Awkward...

      May 12, 2016 at 10:39 am

      Amen. Amen. AMEN!

      I’ve been wondering about the truly average Nigerian worker since I saw the news of this price hike yesterday. Frustration must be manifesting in very many homes right now… bread winners at their wits’ end and wondering how to make ends meet. Plus, may God truly help us so that our crime rate (kidnapping, armed robbery, institutional corruption etc.) doesn’t increase to new heights. God help us all.

  24. Tayo

    May 12, 2016 at 3:22 am

    What exactly does this govt do for its people? Why do we have a govt? seriously lets play a game, name one thing, let’s praise the Nigeria govt small, I’m waiting.

  25. Nigerians, THINK

    May 12, 2016 at 9:19 am

    What is stark from the comments above is that most Nigerians don’t get it. Why are we still talking about subsidy removal? There has been no subsidy removal. There has only been an increase in the pump price of fuel.

    Ask yourselves, if there ever was a subsidy, how much was it? It’s was N9.09 per litre!!! If you remove the subsidy, wouldn’t that mean adding said amount to the previous pump price of petrol?

    This is a blatant disregard of the masses’ plight as has been shown by this administration time and time again. Why do this now when things have not been put in place to buffer the effect of this price hike?

    There’s still no power, the price of food in the market is increasing daily, transportation costs have gone through the roof and insecurity is rife. Why now?

  26. Peaches77

    May 12, 2016 at 12:33 pm

    That is exactly the reason subsidy should have been removed. There was (some sort) of stable power supply then and people would have generally survived better. But then, did the opposition argue based on principle ?? No!
    Do we want to begin to count the benefits we would have been enjoying today had we deregulated in 2012?
    Too bad we are here now. The fed govt has no choice other than to remove subsidy, absolutely no choice… This current situation was predicted.
    It’s going to be veeeery difficult but eventually prices will fall. Now the FG and NNPC(or whatever the new name will be) must see to it.

  27. Ebony

    May 12, 2016 at 12:45 pm

    Hahahaha.
    #Occupy… never mind.
    Y’all proved you can afford it.
    Sigh.
    For the first time in my life, I’m actually considering relocating to another country.

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