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Fuel Scarcity: FG declares18-month emergency on downstream sector

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-The payment of the disparity between N145 and N171 as subsidy was not previously budgeted for in the 2017 or 2018 national budgets

FG declares 18-month emergency on downstream sector

The Federal Government has declared an eighteen-month emergency period in the downstream sector of the petroleum industry.

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The emergency period is to ensure constant supply of fuel prior to the availability of new refineries in 2019, which would boost domestic supply.

The disclosure was made by the Minister of State for Petroleum, Ibe Kachikwu during a Senate public hearing on the current fuel scarcity.

During the public hearing Kachikwu emphasised the readiness of government to restructure the production, importation and distribution of petroleum products in Nigeria.

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The minister assured that the government is working through three key strategies to cover up the lapses in 18 months at the regular price of N145 per litre before new private refineries come on stream in 2019.

One of the major plans that the government says it is considering is

He added that the FG is considering whether NNPC should be permitted to import and distribute fuel to its retail stations at 145 per litre while oil marketers are permitted to import fuel and sell at any price landing cost is arrived at by the regulators and the importers.

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Also, the presidential committee is to look for how to reduce the effect within the eighteen months in a way that will ensure availability and effective distribution of fuel without an increase of the product from the current N145 per litre.

The Vice Chairman of the Committee Philip Aduda and Chairman on Gas, Albert Akpan said the payment of the disparity between N145 and N171 as subsidy was not previously budgeted for in the 2017 or 2018 national budgets.

However, Chairman of the downstream committee, Senator Kabiru Marafa told the Minister and NNPC officials not to respond to the questions, because as a new date will be scheduled for hearing on the proposed augmentation or subsidy by the Federal Government.