The former Managing Director of Nigerian National Petroleum
Company Limited Retail, Prof. Billy Okoye, has said the implementation of
deregulation in Nigeria’s oil and gas industry will force the newly revived
Port Harcourt and Dangote Refineries Premium Motor Spirit (Petrol) ex-depot
prices below the current N1030 and N970 per litre.
Okoye disclosed this on Friday in an interview with Dailypost in Abuja at an event organised by the Petroleum Products Retail Outlet
Owners Association, PETROAN.
According to him, President Bola Ahmed Tinubu’s remark on
fuel subsidy removal in May 2023 set the tone for full deregulation of the oil
industry.
He explained that the coming on stream of Dangote and Port
Harcourt Refinery had heralded the full implementation of deregulation, where
market forces determined prices.
He stressed that the commencement of the domestic refinery
will crash the prices of PMS in Nigeria.
This comes as he clarified that there is no price war
between NNPCL and Dangote Refinery following the commencement of operations at
Port Harcourt Refinery.
He added that the operations of both refineries were good
for Nigerians as the prices of petroleum products will crash in the shortest
possible time.
“When the president, Bola Ahmed Tinubu made that
announcement, subsidy was gone, what it means is that the market is fully
deregulated.
“So with Dangote Refinery coming on stream and NNPC Refinery
(Port Harcourt refinery) coming on stream, what does it mean that the market is
fully deregulated?
“You buy where you see that is most economically viable for
you, and the market now determines the price.
“So there’s no price war. It’s the same thing as in any
market where the forces of demand and supply will determine the price.
“So it’s a good thing for Nigeria. And I tell you that
within the shortest possible time, the price of petroleum products will crash.
This is exactly what happened with the SIM card.
“Before, SIM cards were N5,000, N30,000. Today, with the
competition, SIM cards are almost free now.
“So with this competition in this industry, Dangote Refinery
coming up, modular refineries will also start producing PMS, and with all the
NNPC refineries coming on board now, you find out that the price is going to
crash and Nigerians will start to enjoy,” he told DAILY POST.
PETROAN had also hinted at a fresh PMS price reduction.
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