IN other to counter the uproar that has greeted the new fuel pump price, the Federal Government said new price regime for the downstream petroleum sector is comprehensively designed to tackle the hardship faced by Nigerians and create additional 200,000 jobs in the country.
In a bulletin issued by the Ministry of Petroleum Resources, It said that the new price template would potentially create jobs through the envisaged new investments in refineries and retailing of crude oil products.
It stated that the new pricing template would also prevent potential loss of nearly 400,000 jobs in existing investments in the sector. The bulletin explained that new framework would on the long run solve the recurrent fuel scarcity crisis by ensuring the availability of the products at all locations of the country.
It said the measure would also ensure the total elimination of hoarding, smuggling and diversion of the product while also stabilising price at the actual product price.
It stated that government, through the new price regime, would monitor the new price to ensure that citizens got a fair value for the products they purchased.
It said the new price would enable marketers to source their foreign exchange independent of the Central Bank of Nigeria and ensure adequate product supply in all locations of the country.
It explained that the measure would enable government to deliver on its statutory functions of power generation, security, provision of education and health.
The document explained that the new price regime would permanently eliminate subsidy payments and ensure the availability of funds for the full payment of monthly Federal Accounts Allocation Committee.
It will also provide additional funds for other palliatives and help in stabilizing the economy by creating access to development loans.