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Stakeholders applaud reduction in fuel price

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Marketers yet to comply

Stakeholders in the oil and gas sector have applauded the federal government’s recent measures to reflect the failing crude oil prices at the international markets on the pump prices of petroleum products in the Nigerian market.

The current landing cost of petrol is N64.32 after a barrel of oil in the international market dropped to $27 on Thursday.

According to the President, Lagos Chamber of Commerce and industry (LCCI) Muda Yusuf, the report of a slash in petrol price from N145 to N125 per litre is a welcome development, especially in the light of the slump in global crude oil price.

He, however, said that what is desirable ultimately is for the federal government to come up with an exit strategy to pave the way for a complete liberalisation of the downstream oil sector.

‘’This is an opportune time to do so.  Over the years the Nigerian economy has suffered huge losses as result of over-regulation of the downstream oil sector.  The sector had been denied private investment over the years because of the challenge of the pricing policy.  We hope that this price review signals the commencement of the liberalisation of the sector.’’ He noted

Also, Engr. Josiah Anisiofor, Managing Director of Alpha better gas, Lagos, stated that the price supposed to be lower than #110 per litre considering the international benchmark prices of crude oil.

He noted that the reduction is a welcome development, as his gas company has also reduced the price of cooking gas fromN3,300 to N2,800 per 12.5kg at the gas plant presently.

The oil marketers under the umbrella of Major Marketers Association of Nigeria (MOMAN) have thrown their  support behind measures Federal Government takes to bring about relieve to the people

In an interview with Daily champion, Mr. Tunji Oyebanji, MOMAN chairman disclosed its support  against the backdrop of government directives on reduction in the petrol price from N145 per litre to about N125 per litre

According to Oyebanji, As at now we have not seen any official communication on the price reduction but what will like to say is that certainly , MOMAN is in support of whatever policy government comes with to bring succour to Nigerian people at this very hard and trying period of the country.

” We (MOMAN) will do whatever in our power to make whatever policy government is coming up to work.  We are assured that in implementing this policy, government, will have the best interest of industry at heart as we looked forward to getting other details.

” People may have to bear in little time, as we don’t really know the details but there is a template on which prices are made, which we have not seen. A lot of things were still not cleared.

” The main message here is that we are on total support in whatever policy government comes up with that will bring  succour to Nigerians and improves the downstream operations.

The MOMAN chairman said that the association is optimistic that the process will be beneficial to the downstream sector of the oil and gas industry.

Oyebanji  said: ” We are not sure whether it’s a reduction or complete deregulation. It is a bit difficult to say now, but we hope that in the process the marketer’s margin will be improved within the industry, so as to attract more investment that people will invest in the business.

But major and independent oil marketers in Ondo State are yet to implement the new pump price of petrol.

The Federal Government had on Wednesday announced an adjustment of the pump price of petrol from N145 to N125.

Channels Television crew which went round Akure, the state capital to monitor the situation reported that as early as 8 o’clock Thursday  morning, the mega station of NNPC in Akure have started selling petrol to customers at the new approved rate of N125 per litre.

There were, however, few buyers coming because many people in the city are not aware of the reduction.

Meanwhile, the major and independent marketers are pleading for more time to dispose of the product they bought at the former rate before reverting to the new price.

In Jigawa State, although some filling stations are yet to comply, others are doing so with commercial drivers set to reduce transport fare.

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