Marketers Reject Partial Petrol Subsidies over Oil Price Concerns

To combat the growing cost of petrol, the Federal Government has been forewarned by the Major Oil Marketers Association of Nigeria (MOMAN) against partially introducing gasoline subsidies.
According to the organisation’s Chief Executive Officer, Clement Isong, any short-term intervention must be carefully targeted, reasonably priced, well-planned, time-bound, and should not have a detrimental long-term impact on the Nigerian economy.
The Association of Energy Correspondents (NAEC) International Strategic Conference 2023 was held in Lagos on Thursday, and Isong announced this during the event.
“Energy Transition, PIA, Petroleum Pricing, and the Way Forward in the Downstream Sector” is the conference’s theme.
As long as they are time-limited and especially targeted at assisting consumers, he claims, MOMAN is in favour of short-term interventions in the cost of imported petroleum products.
Isong claimed that these actions shouldn’t have a long-term negative impact on the economy of Nigeria.
Isong stated as well that the petroleum industry’s value chain has attracted investment as a result of the liberalisation of the downstream sector.
He did, however, issue a warning that if commodity prices improve and become economically viable for investors, the rate of investment will dramatically rise.
The CEO said, “Deregulations are meant to enable people and businesses. Therefore, there is need for the right decisions to be made, based on the resources available.
“When the commodity pricing is right, this would serve as a confidence booster for the sector.
“If spending goes down, the industry should reduce its costs, people should consider the use of alternative energies available.”
In addition, he predicted that the cost of crude oil and market dynamics will drive up the price of petrol.
Isong predicted that customers of petroleum goods will prioritise energy efficiency and choose alternative fuels like compressed natural gas (CNG) as a result of price increases.
He predicts that this will result in a switch to CNG from diesel-powered engines for transportation and generators.

Source: allnewsng.com

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