FG forecasts zero fuel subsidy in this year


The Federal Government has said that the novel price modulation mechanism currently in place will ensure that it records zero expenses on fuel subsidy in 2016. The Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Emmanuel Ibe Kachickwu, said this last week, at the 45th Convocation Lecture of the University of Nigerian Nsukka, Enugu State. \r\nHe spoke under the theme: The Petroleum Industry and the Future of the Nigerian National-Oil Resource Management and the Implication for National Security & Economic Survival. Kachikwu said the zero fuel subsidy will be sustained based on prevailing modified pricing template for petroleum products, which has eliminated extraneous cost elements. \r\nAccording to him, \”Without necessarily removing subsidy the government will spend zero amounts in subsidy in 2016. This may sound unbelievable to some people but that is part of the change agenda of the present administration of President Mohammadu Buhari.\” He also disclosed that large chunks of vandalised pipelines are being recovered which will supply more crude to the refineries.


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