Hike in petrol price :
* Major Oil Marketers clear the air on new pump price
By Udeme Clement :
The Chairman, Major Oil Marketers Association of Nigeria, MOMAN, Mr Tunji Oyebanji, has said that pump prices of petroleum products will have to be adjusted to reflect the realities of increase in ex-depot prices by PPMC.
He said this sequel to increase in the price of Premium Motor Spirit, PMS, by the Federal Government.
According to him, “The magnitude of increase, timng and location are decisions left to each company.
“Consistent with global best practice, MOMAN does not dictate prices to its members, as this would be anti-competition in a fully deregulated market.’
He stressed, “We welcome government’s action in allowing the market to determine prices, as we believe it will prevent the return of subsidies while allowing operators the opportunity to recover their costs”.
He pointed out, “This will in the long-run encourage investment and create jobs. We all must remember the country is broke and can no longer afford subsidy. There is no provision for it in the budget. With this, the incentive for smuggling will be reduced.
“More funds will be available to government for investment in infrastructure, roads, health, education and power.
“Deregulation means that prices will go up and down. They went down in April, now they will go up, as we are entering the European winter season and demand for refined crude goes up. Already there are indications of more investments in local refining in Nigeria, which will moderate the cost.
“Competition will also moderate the prices. As you can see, not everyone is selling at the same price. So as things stand, we are into full Deregulation.
“Unfortunately, this is coming at the time when most of our citizens are struggling with difficulties created within the context of the post Covid-19 economy. We believe that Nigeria has been presented with a historic opportunity to get it right this time, as a country to rebuild its economy for the benefit of all Nigerians”.