Speaking on Channels Television programme, "Sunrise Daily" on Thursday, Ibe Kachikwu, the Minister of State for Petroleum, said the lifting of petrol price should not be the basis for which government will provide palliatives to its citizens.
The minister who defended the change in pump price for Premium Motor Spirit (PMS) by the federal government from N86.50k to N145, stressed that no marketer has been told the amount to sell its product, but that the Nigerian National Petroleum Corporation (NNPC) will be hoping to sell at 135 Naira per litre.
"As we go into the hinterlands, NNPC stations will be hoping to head towards more of 135 Naira than the 145 Naira band.
"If you convert it and throw it in you will get about 141, 142 or 143. So there isn’t much of palliative elements left there for you to use. It is simply, ‘go out, find your product, your cost is covered, there is an opportunity for your efficiency to make money, come and deliver’.
"It is not the lifting of petroleum pricing that should be the basis in which government provides a palliative, government has a responsibility to provide social palliatives in an ordinary course of running the day to day administration of a government and they are doing that. If you look at 2016 budget, there are loads of such palliatives," he said.
"The ultimate of what we are headed for is that everybody should be able to do the business, bring in the product.
"I hear people want to have an argument about whether it is full deregulation or partial deregulation but at the end of the day, the objective is what was achieved with diesel or AGO, which is that the government will have less control over the business and individuals will be free to compete so that Nigerians will have the advantage of that competition," he said.
"Because of the sensitivity of PMS, you want to be sure that at the initial stage there are some guidelines in terms of how you do your pricing but ultimately, obviously we will let the market dynamics take place.
"What we have done is an upper cap, we have not told anyone what price to sell. We expect that the efficiencies will force people to determine their prices,” stressing that the price band of 135 to 145 Naira are 'guideline prices'.
The Minister noted that the decision was made with the input of major players in the sector, stressing that this is a 'transition period' towards achieving sufficient availability of the product.