The Group Managing Director of Rainoil Ltd, Gabriel Ogbechie, has alerted Nigerians to prepare for market-based pricing of petroleum products following the federal government’s complete deregulation of the downstream sector.
Speaking on Channels Television’s Business Morning on Tuesday, Ogbechie commended President Bola Tinubu for his decision to eliminate the fuel subsidy, stating that this move promotes healthy competition within the industry.
His comments come amid the recent surge in the price of Premium Motor Spirit (PMS), which has skyrocketed from ₦175 per litre as of May 29, 2023, to ₦1,300 per litre.
“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,” he noted.
When asked whether petrol prices at the pump would continue to escalate, Ogbechie affirmed, “The key thing is that deregulation is here to stay. Petrol is anything between ₦1000 and ₦1060 per litre towards the coast, and maybe ₦1300 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,” he explained