Posted by From LUCKY NWANKWERE, Abuja on
The Federal Government on Wednesday said it had no immediate plans to hike the pump prices of petroleum products.
The Federal Government on Wednesday said it had no immediate plans to hike the pump prices of petroleum products.
It added contrary to speculations about possible price hike that it would continue to subsidize the fuel price.
The Minister of State for Energy in charge of Petroleum, Mr. Odein Ajumogobia made the statement in Abuja while briefing State House correspondents on the outcome of the Federal Executive Council meeting.
However, Ajumogobia pointed out that the prices of petroleum products were determined by the international price of crude as well as the cost of the products landed in the country.
'I don't know where that (rumour) is coming from. The price of petrol, let's take diesel as an example, is a function of the international price of crude and the cost of the products landed in Nigeria. Today, the price is over N140, then you add the margin of what the marketers can make. How somebody gets it up to N200 is what I don't know.
'That notwithstanding, government is looking at measures to cushion the effects of the rise in the price of crude in the international market. In the interim, it will be through subsidy, but as an interim measure," he further stated.
The minister equally announced the council's approval for a contract for the Nigerian National Petroleum Corporation (NNPC) to renew its consultancy services contract for the Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company, Warri Refining and Petrochemical Company and Engineering and Technical Services Department for Euro 20.7 million (N3.5 billion).
He said the contract was part of efforts to rehabilitate and restream the three existing refineries, operating but at less than optimum capacity due to their general poor state.
Another major outcome of the council's meeting, according to Ajumogobia, was another contract for the refurbishment of the 10-storey Lagos headquarters' office of the Department of Petroleum Resources for N897.2 million.
The contract, he explained, would among others, see the extension of part of the frontage by two floors as well as the removal of the roof and construction of an additional floor and re-roofing.
At the briefing coordinated by the Minister of Information and Communications, Mr. John Odey, the minister of state for Energy said the building was constructed over 15 years ago with no major renovation work till date.
'With the re-organization of the department for better efficiency, it has become necessary to carry out the proposed major renovation so as to accommodate the newly employed staff and create better working environment," he stated.