By Eyo Nsima

There were fears of a possible new price of petrol emerging soon as the landing cost of the product rose from N151 to N180 per litre because high crude oil prices.

The consistent rise of crude oil prices from about $58 to more than $63 per barrel has compelled operators to incur additional cost in the process of refining petroleum products.

Consequently, it was reliably learnt that the pump price could rise from N162 to about N190 per litre when others variables, including marketers’ margins are added.

Nevertheless, the Nigerian National Petroleum Corporation, NNPC has met with marketers and other stakeholders in order to maintain stability in the sector.

In his recent presentation on, ‘After Deregulation, What Next?’ in Lagos, February 11, 2021, Mr. Adetunji Oyebanji, Chairman, MOMAN, had stated: “With a fully deregulated downstream industry, the natural fear and anticipation of Nigerians is the increase in the price of transportation, food items, and the attendant economic hardships. Solutions to these challenges can only emanate from a collective resolve by all stakeholders to face up to these challenges together.

“We must as a national debate and share pragmatic and realistic initiatives to mitigate the impact of a pump price increase that could follow a fully deregulated downstream. We stand with Nigeria and Nigerians through this difficult time and support the Federal Government’s promise to pass the Petroleum Industry Bill, PIB this year and fully deregulate the petroleum downstream sector. The benefit of a liberalized downstream is the most visible means of growing the economy in the medium to long term. Nigeria can become the refining hub of West and Central Africa and eventually the whole of Africa if we stick to this path of investing in new refineries, adopting a cost optimization initiative, building an environment that promotes competition, and creates a sustainable petroleum sector. These actions would lead to increased employment, reduced poverty, and reduced social inequity.

“We must take advantage of the opportunities brought by the African Continental Free Trade Area agreement (AfCFTA) and fully benefit from our barrels of crude, getting the maximum value it can bring Nigeria. MOMAN is calling for a national discourse among all stakeholders including Government, Labour, Civil Society Organizations, the Organized Private Sector, and Operators, not on the merits or demerits of petrol subsidy removal, but on the initiatives that can be taken to ease the impact of the subsidy removal on the most vulnerable in our society.”