Olufemi Adeyemi
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, on Friday, explained that with the removal of subsidy, the market will dictate the pump price of Premium Motor Spirit, known better as petrol.
He explained
that under the liberalized market, market forces are allowed to dictate prices.
The market he noted is now open for everybody that wants to
import as far as they meet all the requirements.
Also, the NMDPRA promised to guide their operations whether
at the depot or wherever the product is but will not put a cap to say this is
what the price must be.
Ahmed explained that the NNPC’s role is to fix the prices of
the petrol it imports and not take over the responsibilities of the Authority.
This is to allow it recover its costs because it knows how much was used to
import the product
The NMDPRA chief also revealed that the Federal Government
has officially scrapped petroleum equalization as well as the national
transport allowance.
He added that the NMDPRA and the Federal Competition and
Consumer Protection Commission (FCCPC) will mount aggressive monitoring of
activities in the downstream sector to prevent profiteering by petroleum
marketers.
Ahmed said further that marketers are now free to source
their foreign exchange anywhere around the world to import petroleum products
and then recover their costs without impediment as The market structure will
also dictate the price swings at every point in time. He maintained that the
Dangote will help the nation in two ways by giving Nigeria easy access to
petroleum products on-land for security reasons and increase employment for
professionals
However, Ahmed was quick to caution against optimism for
cheap petroleum products, as the company will be buying crude oil at the
international price.
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