Despite the announcement of a reduction in the price of petrol from N87 to N86.50 per litre by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, the product is still being sold well beyond the approved price in many parts of the country. Only a few filling stations in Lagos have complied with the new price regime, albeit with doubts over their metering.
Generally, a litre of petrol is being sold between N110 and N130 at many fuel stations. In Enugu, Anambra and other South-East states, the product sells between N130 and N140 per litre.
Besides the substantial non-compliance with the new official price, the inability of marketers to purchase the product has led to scarcity in some filling stations. The government’s approval of the new price regime through the Petroleum Products Pricing and Regulatory Agency (PPPRA) has done little to assuage the pains of users of the product. The new prices approved from January 1 under the new pricing template are expected to subsist till March 31.
Under the new price regime, petrol is expected to sell at N86 per litre at all retail outlets of the Nigerian National Petroleum Corporation (NNPC) while private retail outlets will sell at N86.50 per litre. Petrol users are, however, yet to enjoy the N1 and 50k reduction in the official price of the product announced by the Executive Secretary of the PPPRA, Farouk Ahmed.
It is regrettable that majority of filling stations across the country are yet to comply with the new petrol prices. Apart from the fact that some marketers are finding it difficult to obtain the products at the depots, there may be sabotage on the part of some fuel dealers who are out to make huge profits.
The government’s silence on the fuel subsidy conundrum is probably also fueling the current scarcity in some states and the non-compliance with the new pump prices. Government should be unequivocal on the matter of fuel subsidy. It should unambiguously state whether it has removed the subsidy or not.
Without preempting government’s position on this matter, we think it is time to do away with the corrupt subsidy regime. The current low price of crude oil in international market does not support any claim for subsidy.
This is, indeed, the right time for government to fully deregulate the petroleum sector so that many investors can come in, make it competitive and operate in line with global best practice. Government should provide an enabling environment that can attract foreign and local investors to the oil sector.
The need to urgently build more refineries cannot be overemphasised. With the continuing fall in the price of crude oil in the international market, it will make more economic sense if we refine our crude and sell finished products, rather than rely on the sale of crude oil alone. Let more investors be encouraged to build refineries in the country so that we can produce enough to meet domestic needs, and for export.All companies that have been given licences to build refineries should be compelled to do so. Those who do not should have their licences revoked and given to other willing investors in the sector.
Let the government muster the strong political will required to privatise our under-performing refineries. The recent revelation that our refineries contribute only 17 percent of our daily petrol consumption is not cheering. For the oil sector to work well, government should hands off the refineries and be a regulator only. It should consider the passage of the Petroleum Industry Bill (PIB), whether in bits or whole, to facilitate the expected turnaround of the sector for the benefit of all stakeholders.
Let government ensure that petrol is available at the official price at all filling stations across the country. It is important that it enforces compliance with the new petrol price regime. We say this because government cannot fold its hands while marketers defy its directives. They should not be allowed to derail the new price regime.
The relevant petroleum regulatory agencies should swing into action to stop the cheating of Nigerian fuel consumers.
Besides the substantial non-compliance with the new official price, the inability of marketers to purchase the product has led to scarcity in some filling stations. The government’s approval of the new price regime through the Petroleum Products Pricing and Regulatory Agency (PPPRA) has done little to assuage the pains of users of the product. The new prices approved from January 1 under the new pricing template are expected to subsist till March 31.
Under the new price regime, petrol is expected to sell at N86 per litre at all retail outlets of the Nigerian National Petroleum Corporation (NNPC) while private retail outlets will sell at N86.50 per litre. Petrol users are, however, yet to enjoy the N1 and 50k reduction in the official price of the product announced by the Executive Secretary of the PPPRA, Farouk Ahmed.
It is regrettable that majority of filling stations across the country are yet to comply with the new petrol prices. Apart from the fact that some marketers are finding it difficult to obtain the products at the depots, there may be sabotage on the part of some fuel dealers who are out to make huge profits.
The government’s silence on the fuel subsidy conundrum is probably also fueling the current scarcity in some states and the non-compliance with the new pump prices. Government should be unequivocal on the matter of fuel subsidy. It should unambiguously state whether it has removed the subsidy or not.
Without preempting government’s position on this matter, we think it is time to do away with the corrupt subsidy regime. The current low price of crude oil in international market does not support any claim for subsidy.
This is, indeed, the right time for government to fully deregulate the petroleum sector so that many investors can come in, make it competitive and operate in line with global best practice. Government should provide an enabling environment that can attract foreign and local investors to the oil sector.
The need to urgently build more refineries cannot be overemphasised. With the continuing fall in the price of crude oil in the international market, it will make more economic sense if we refine our crude and sell finished products, rather than rely on the sale of crude oil alone. Let more investors be encouraged to build refineries in the country so that we can produce enough to meet domestic needs, and for export.All companies that have been given licences to build refineries should be compelled to do so. Those who do not should have their licences revoked and given to other willing investors in the sector.
Let the government muster the strong political will required to privatise our under-performing refineries. The recent revelation that our refineries contribute only 17 percent of our daily petrol consumption is not cheering. For the oil sector to work well, government should hands off the refineries and be a regulator only. It should consider the passage of the Petroleum Industry Bill (PIB), whether in bits or whole, to facilitate the expected turnaround of the sector for the benefit of all stakeholders.
Let government ensure that petrol is available at the official price at all filling stations across the country. It is important that it enforces compliance with the new petrol price regime. We say this because government cannot fold its hands while marketers defy its directives. They should not be allowed to derail the new price regime.
The relevant petroleum regulatory agencies should swing into action to stop the cheating of Nigerian fuel consumers.
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