Senate President Godswill Akpabio has addressed the recent surge in petroleum pump prices, clarifying that it is largely due to deregulation rather than a straightforward price hike.
He explained that with the removal of consumer subsidies, consumers will now pay the actual market price for fuel.
Akpabio noted that this change could encourage individuals to limit their fuel usage, emphasizing that the shift aims to free up funds for other priorities.
He expressed confidence that market forces will determine prices moving forward and that the entry of multiple suppliers will enhance competition, potentially driving prices down.
While he acknowledged that initial price increases may occur, he is optimistic that production from Dangote and other refineries, along with a more open import market, could lead to greater availability of petroleum products and stabilize prices in the future.
Akpabio reassured the public that the Senate will keep a close watch on the situation and will intervene if needed.
“I haven’t actually assessed what is happening in terms of pump price increase, but it’s not pump price increase, it’s deregulation.
“If you are taking away the consumer subsidy and then you want people to pay for the actual price of what we consume, it means if you have five cars you will now use one or two.
“It simply means that you are going to stop the idea of subsidy in order to make sure that the monies are used for other things. So I don’t expect any increase in pump price.
“I will expect the market forces to determine prices.;I would expect that now that the NNPCL is no longer going to bring petroleum products into the country, it means those who have the capacity will bring it and the more the products are available, the cheaper the price.
“So at the beginning, it may seems to be increasing, but I believe strongly that with the production from Dangote and then the other refineries when they become functional and the fact that it is now open to all to bring in products into the country, I can assure you that we may not even see higher pump prices.
“So please let’s not dwell on the increase in pump price. We will assess it and if there is need for us to intervene we will intervene.”
