Mixed feelings as PMS(petrol) officially Becomes 145 per Litre

It has been a long standing argument by critical assessors of
the economy that deregulation remains the tonic to turn around
the fortunes of the downstream sector of the oil and gas
industry. Those who canvass this position argue that it will
provide enduring solution to the recurring scarcity of petroleum
products and halt the corruption in the subsidy regime.
The payment of subsidy has been digging a hole in Federal
Government’s purse to the tune of about N1trillion annually.
Apart from halting the payment, which not a few Nigerians
describe as a scam,
deregulation will also encourage investors to build refineries
and sell products at market prices, boost investments and
create jobs.
More importantly perhaps, those clamoring for deregulation say
that it will end the paradox of a nation dependent on importation
of petroleum products despite being world’s sixth largest oil
producer.
However, the Federal Government’s announcement of an
increase in the pump price of Premium Motor Spirit (PMS),
otherwise called petrol to N145 per liter did not go down well
with some.
Labour union leaders are literarily up in arms over the decision.
Some of them, who spoke with The Nation, could barely hide
their anger and frustration over what they termed as “wrong
timing and ill-conceived” manner the Federal Government
deregulated the sector.
But the Director-General, Enugu Chamber of Commerce,
Industry, Mines and Agriculture (ECCIMA), Sir Emeka Okereke,
said:“ We have always said let subsidy go; deregulate so that
market forces will determine the price of petroleum products
and the dollar.” . He recalled that because of political exigency,
Goodluck Jonathan failed to take the bull by the horns and
deregulate the sector.
He said this was why the administration buckled under the
pressure by labour unionists and civil society in 2012 when
there was a nationwide protest against the removal of fuel
subsidy.
“ Subsidy doesn’t make economic sense anymore. It has
become unsustainable . We will never come out of the woods as
long as we continue to subsidize the price of petroleum
products,” Okereke said.

The Petroleum Products Pricing and Regulatory Agency

(PPPRA), which statutorily moderates pricing for the industry

said Nigerian National Petroleum Corporation (NNPC) Retail

stations on the outskirts of major cities are advised to sell at

price lower than N145/litre.

Labour kick, says increase is unacceptable

NLC President Ayuba Wabba claimed that increase in pump

price of petroleum products would impoverish more Nigerians

and distabilise the country. “Any increase in the price of

petroleum products is unacceptable to labour and we are going

to fight it,” he threatened.