The former President of Nigerian Association of Petroleum Explorationists (NAPE), Abiodun Adesanya has expressed optimism about the new petrol price increase.
He identified that this would be an opportunity for refineries to be built and run as a business in Nigeria.
“However, if our refineries are properly built, that means we’ll drastically reduce our importation or stop importation of refined petroleum,” he said.
In a phone interview with Nigerian NewsDirect, the Managing Director, Degeconek, said, “I am assuming that the announcement confirms that petroleum subsidy has been removed.
“Prices are not being dictated by international oil prices and the standards “top ups”. This will pave the way for refineries to be built and owners run it as a business.”
Recall that the federal government has just increased the pump price of Premium Motor Spirit, also known as petrol from N140.80 to N143.80 per litre.
The Petroleum Products Pricing Regulatory Agency (PPPRA) announced the increment in a statement issued by its Executive Secretary, Abdulkadir Saidu on Wednesday.
“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80-N143.80 per litre for the month of July 2020.
“All marketers are advised to operate within the indicative prices as advised by the PPPRA.”
The agency had on May 31, 2020 announced a price band of N121.50 to N123.50 per litre for the product.
The agency noted that the rise in petrol price for July was primarily due to the increase in global crude oil prices, as PMS had been deregulated.