From Segun Amure, (The New Diplomat’s Abuja Bureau)
The Nigerian Petroleum Corporation, (NNPC) on Monday, summoned major marketers, independent marketers and other stakeholders to deliberate on petrol price as the landing cost of the product rose from N151 to N180 per litre, due to the ongoing oil price rally at the international market.
The rise in crude oil price from $58 to more than $63 per barrel, has led to marketers incurring additional cost, especially as a bulk of the product is currently imported into the nation.
Accrording to reports, pump price could rise from N162 to about N190 per litre when the marketers’ margins and other considerations are added.
It was disclosed that stakeholders were generally opposed to a further increase in price so as to prevent instability in the sector, and by extension the nation’s economy. Also, the NNPC may be forced to continue to bear the burden of subsidy as the government did not make provision for it in the 2021 budget.
It would be recalled that Chairman MOMAN, Mr. Adetunji on the 11 February, ‘After Deregulation, What Next?’ in Lagos, said, “With a fully deregulated downstream industry, the natural fear and anticipation of Nigerians is the increase in the price of transportation, food items, and the attendant economic hardships.
Olatunji added that, “Solutions to these challenges can only emanate from a collective resolve by all stakeholders to face up to these challenges together. We must have a national debate and share pragmatic and realistic initiatives to mitigate the impact of a pump price increase that could follow a fully deregulated downstream.
“We stand with Nigeria and Nigerians through this difficult time and support the Federal Government’s promise to pass the Petroleum Industry Bill, PIB this year and fully deregulate the petroleum downstream sector.
“The benefit of a liberalized downstream is the most visible means of growing the economy in the medium to long term. Nigeria can become the refining hub of West and Central Africa and eventually the whole of Africa if we stick to this path of investing in new refineries, adopting a cost optimization initiative, building an environment that promotes competition, and creates a sustainable petroleum sector. These actions would lead to increased employment, reduced poverty, and reduced social inequality. We must take advantage of the opportunities brought by the African Continental Free Trade Area agreement (AfCFTA) and fully benefit from our barrels of crude, getting the maximum value it can bring Nigeria” He, said
Therefore, “Moman submitted that beyond the debate on the arguments for the removal of petrol price subsidies. The discussion should focus on how best to maximise the benefits of the removal of price controls and subsidies while minimizing the adverse effects of this action on our citizens.”
