Gabriel Ogbechie, the Group Managing Director, Rainoil Ltd, has asked Nigerians to prepare to pay full market prices for petroleum products as a result of the full deregulation of the downstream sector.
After President Bola Tinubu announced that subsidy was gone, the pump price of petrol rose from N198 to N545 per litre and the Nigerian National Petroleum Corporation Limited (NNPCL) regulated pump prices at its outlets nationwide.
But two weeks ago, NNPCL exited its middleman role, forcing the pump price of fuel to sell between N998 and N1,250 per litre.
While appearing on Channels Television’s Business Morning on Tuesday, Ogbechie lauded Tinubu’s decision on the removal of fuel subsidy, saying that it allowed for healthy competition in the downstream sector.
“President Tinubu did the right thing by saying the subsidy was gone. He removed the subsidy and then we saw the price of petrol slide upwards.
“At some point, I think the government had to intervene to calm things down and then NNPCL went back to fixing the prices of petroleum products.
“But in October, we saw the government now saying such would not be allowed anymore, directing marketers to source their products and fix prices.
“I also don’t believe that the exchange rate has been floated. Every day you go to the market, it is now a willing buyer, willing seller situation.”
When asked if prices of petrol at the pump would continue to rise, he said; “The key thing is that deregulation is here to stay. Petrol is anything between N1000 and n1060 per litre towards the coast, and maybe N1300 as you go further north.
“As long as the price of crude oil keeps changing, as long as the exchange rate keeps changing, prices of petrol too will keep changing.
“If we see a massive drop in the price of crude oil, the price of petrol will also drop. If we see a drop or devaluation in the price of the exchange rate, there will also be a drop in the price of petrol.
“Nobody can exactly tell you what will happen in the next six months. But Nigerians should just be ready to pay the market-determined prices for petroleum products.”
