The Nigerian National Petroleum Corporation believes there will be no fresh subsidy in the 2016 budget.

At a media interaction in Abuja, the Group General Manager, Corporate Planning, Mr Bello Rabiu, explained that a new framework was being worked on for the management of subsidy on petrol.

Mr Rabiu said that the new template would eliminate subsidy in the next few months, leaving the price of petrol at a capped price of 97 Naira.

He, however, insisted that the 2016 budget would only capture arrears of subsidy payments.

On Thursday, the Minister of State for Petroleum, Dr Ibe Kachikwu, told reporters that contrary to speculations, the government was not interested in the removal of subsidy on petroleum products, but that a price modulation that would reduce its involvement in pricing starting 2016 would be introduced.

The Minister of State for Petroleum, Dr Ibe Kachikwu, briefed reporters of the government’s position on Thursday.

Dr Kachikwu said a periodical review of the Petroleum Pricing Template and a flexible management of the pricing system would be considered.

He said the review would allow marketers to trade freely and reflect prevailing international price of crude.

According to him, the review will be the key focus in the first quarter of the coming year.

At the moment, the nation is facing shortage of petrol, with queues seen at different service stations across the oil-rich nation. (Channels TV)