The Minister of State for Petroleum Resources Dr. Ibe Kachikwu, says increasing fuel pump price from N145 to N185 per litre, remains the only solution to the lingering crisis in the sector.
He said given the landing cost of N171 per litre for the product, the government regulated pump price of N145 is no longer feasible.
Dr. Kachikwu, disclosed this to the National Assembly Joint Committee on Petroleum (Upstream and Downstream) and Gas, during a public hearing, which sought answers to the fuel crisis that grounded the country during the yuletide period.
Speaking at the hearing, the Minister said about four thousand five hundred trucks, loaded with Premium Motor Spirit (PMS) were diverted by marketers during the Christmas
period, which resulted in the acute scarcity witnessed during the festive season.
Kachikwu, further stated, that such will continue to occur until the federal government, implements a three pronged model of pricing efficiency, enforcement and infrastructure or logistics in the downstream sector.
While explaining that the landing cost of N151 per litter has other specific charges, including charges by government agencies, such as NIMASA, NPA, among others, amounting to N19.
He blamed factors like, logistics, hoarding and diversion, price disparity issue for the crisis, adding that the ministry has created an eighteen month emergency window to permanently resolve this issue.