Nigeria, Africa’s biggest oil producer, will reduce gasoline costs and scrap fuel subsidies under a pricing mechanism to come into effect as of January, Petroleum Minister of State, Emmanuel Kachikwu said, Bloomberg reported.
Prices will fall to $0.44 (85 naira) per liter from 87 naira, according to a Petroleum Ministry’s statement.
Kachikwu, who is also the Managing Director of the state-owned Nigerian National Petroleum Corporation said that the new price would convince Nigerians that the pricing modulation, which the Federal Government had promised to embark on a few days ago, was not a trick, Premium Times informed.
Nigeria relies on fuel imports to meet domestic needs since its refineries produce a fraction of their overall 445,000b/d capacity after decades of poor maintenance, corruption, and mismanagement. Following a completion of repairs, the Port Harcourt refinery in the country’s southern oil hub will begin production in January, Kachikwu told reporters during his recent visit to the Port Harcourt Refinery Company.