Why FG’ll continue to determine petrol price, after deregulation of downstream sector

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Why FG’ll continue to determine petrol price, after deregulation of downstream sector — Minister

Why FG’ll continue to determine petrol price, after deregulation of downstream sector — Minister

[color=var(--atc)]Why FG’ll continue to determine petrol price, after deregulation of downstream sector — Minister



• Says intervention due to marketers’ exploitative tendencies

 
The Federal Government, said yesterday it has deregulated the downstream petroleum industry. [/color]

The government, however, said it would continue to intervene in determining the pump price of  Premium Motor Spirit, PMS, also known as petrol, to safeguard consumers of the commodity from being exploited by oil marketers.


Addressing newsmen in Abuja, Minister of State for Petroleum Resources, Chief Timipre Sylva, stated that the deregulation came into effect on March 19, 2020.


Sylva disclosed that the decision of the government to continue to intervene in fixing fuel price was a result of the ugly experiences the government was having with oil marketers who have deliberately refused to bring down the cost of diesel and other petroleum products whose landing costs had reduced.


He, however, bemoaned the fact that despite the slash in the pump price of Premium Motor Spirit, the prices of food items and other commodity were yet to come down, but were instead going up.


The minister noted that if the prices were increased by a little margin, prices of food items would have skyrocketed.
He said:  “Deregulation of the downstream petroleum sector was approved on the 19th of March. What was announced on that day was already deregulation, However, PMS and kerosene are strategic to the country, hence, we cannot allow their prices to be determined wholly by marketers. Consumers had to be protected. This is what obtains globally.
No impact of fuel price reduction on food prices, others


He bemoaned the fact that the reduction in the price of PMS had not impacted prices of food items and, transportation costs among others, while he called on Nigerians to hold market players accountable when the price of PMS begins to rise again.


He said: “We have reduced fuel price, but the prices of commodities in the market are not going down. But if we increase, you will increase the price of PMS, cost of these same items would skyrocket. Now, the market players should be held responsible to ensure prices do not go up inordinately while prices of fuel go up.”


LPG penetration

Sylva further stated that the Federal Government was kick-starting the Liquefied Petroleum Gas (LPG) penetration policy, June ending, hopefully, after the COVID-19 pandemic forced it to postpone the commencement twice, in April and May 2020.


In the LPG policy, he said the government was planning to set up 32,000 micro distribution centres (MDC) for LPG, also known as cooking gas, across the country, and would see the engagement of 5,000 youths across the country, while the existing illegal roadside LPG dealers would also be inculcated in the programme.


He said the LPG penetration programme would create a lot of jobs in the country and would encourage more Nigerians to use LPG.