Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has assured that price of fuel might tumble down to surprised low level within six months of operating the increase in the product to N145 per litre.
He said that Nigerians will be amazed at what will become of the price of fuel in the next six months following the removal of fuel subsidy.
Kachikwu, who spoke on Channels Television’s programme: the Sunrise Daily today, Thursday, said that the market dynamics would take hold fast “because there are a lot of Nigerians who are very active, very bullish, and very talented in doing this, they just have been prevented by government intrusions.
“As it gets better and it gets to a point where we find that the market has stabilized in terms of supply, we will begin to pull back a bit in terms of determinants for pricing.”
He said that by opening up the space for people to perform, to practice their trade, “you will be amazed at what will happen to your N145 price because it will go downwards.”
Kachikwu said that the removal of subsidy had become necessary in order put an end to fuel scarcity in the country, adding that if the government did not take the step it took, massive subsidy would continue and that there was no foreign exchange for importation.
According to the minister, as a result of the decline in government earnings from oil, it could no longer provide foreign exchange for the importation of fuel. [myad]