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Reduction in Oil Price Counterproductive – Oil Marketers

The members of the Private Depot of Oil and Gas Marketers Association of Nigeria (PDOGMAN) and other stakeholders have reacted described as counterproductive the new pump price reduction announced by the federal government.

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The government had approved the reduction of the pump price of Premium Motor Spirit (PMS), popularly referred to as petrol, from N145 per litre to N125 per litre with immediate effect. According to reports, this is coming on the backdrop of the crash in crude oil prices globally.

Speaking with the Nation in a telephone chat, the pioneer National President of the Association, Chief (Dr.) Kolawole Adewoyin, said although the government must have had good intentions but it was not in the overall interest of the country.

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Adewoyin said the reduction was faulty in its entirety.

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“Is the price reduction going to be a temporary or permanent measure? What happens if the global oil price increases again, are we going to review the price upward?”, he asked.

According to him, the decision to reduce the pump price was “Taken arbitrarily without due consultation with relevant stakeholders. Such unilateral decision reminds one of the policy initiatives under the military regime which do things in fiat. It’s not in the overall interest of the operators and ultimately in the public interest because the policy is not founded on solid ground.”

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“The question is why can’t the government make up its mind and take a firm stand on deregulation of the sector instead of committing so much to subsidy which cost the taxpayers a lot of money and denies us all of reaping the true dividends of democracy such as good road networks, efficient healthcare delivery system and what have you. How many people have cars compare to those who don’t have? Kerosene was deregulated and it’s on record we have a high percentage of the population consume this compared to petroleum.”

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On his part, the National Secretary of PDOGMAN, Mr. Fred Ufua, said the federal government need to ensure equitable distribution of wealth in the nation’s oil and gas sector as the current arrangement which granted the sole monopoly to the NNPC to determine the fate of other stakeholders who contribute their quota to the sustainability of the sector.

. Reduction in Oil Price Counterproductive – Oil Marketers Follow iDONSABI.

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Reduction in Oil Price Counterproductive – Oil Marketers

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