Chairman of Oil and Gas Traders Association of Nigeria in Ogun State, Alhaji Surajudeen Bada has expressed support for the Federal Government for sustaining the current pump-price of N162 per litre for petrol in the country
Nigeria's Minister of State For Petroluem Resources, Chief Timipre Sylva on Friday assured Nigerians of no hike in the pump price of the product until the completion of the talks between the government and Organized labour
The Nigeria Governors Forum had recommended pump price of N385 during the last Thursday's Federation Accounts Allocation Committee (FAAC) meeting, to reflect the market reality of full deregulation of the down stream in the country
But Bada in an exclusive chat with Edu-Biznews in Abeokuta, the state capital, cautioned against such hike in the pump price, saying the proposed over 100 percent increase in pump price of the product would cause more hardship for Nigerians and even the independent oil marketers who would need to increase their working capital to sustain themselves in business
The former State Chairman of the Independent Petroleum Marketers Association of Nigeria(IPMAN) stressed the need for the Federal Government to continue to use part of the country's essence earnings from the crude oil which is now $66.44 per barrel at the international market above $40 bench mark used for the 2021 budget, to subsidize the product
"Nigeria is earning more dollars than the benchmark for the 2021budget, the international market price is near $70 per barrel and Nigeria budgeted below $50, definitely we are getting more revenue than expected, our position is that government should use part of the essence earnings from the International oil market to subsidize at home for people to enjoy, though we are never in support of the Subsidy but government should block the leakages in the system",he stated
The Chief Executive Officer of Surrey Bee Oil Nigeria Limited, however expressed strong support for full deregulation of the downstream sector, as recommended by the governors, particularly the handing over of the three refineries being rehabilitated to the private sector to run effectively as well as encourage setting up of more private refineries in the country before the removal of the Subsidy
He explained that the Nigeria Governors Forum based its recommendations of N385 per litre of petrol on market reality and to discourage the smugglers who usually take advantage of the government's provision for subsidy, by diverting the product imported into Nigeria to Cameroon, Niger Republic, Benin-Republic and other neighbouring countries
He emphasised the need for government to block the leakages in the system, encourage more participation of the private sector in establishing local refineries before removing the subsidy on the product in the country
The Nigeria National Petroluem Corporation (NNPC) could not remit as expected into the federation account for the month of April, because of the huge amount being spent by government for the subsidying the product
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