– Subsidy only benefiting few corrupt individuals
Nigeria’s Federal Government has disclosed that Premium Motor Spirit otherwise known as fuel will soon be sold for less than a ₦100 per litre.
This was revealed by the Senior Special Assistant to President Muhammadu Buhari on Niger Delta Affairs, Senator Ita Enang during a meeting with the Domestic Refinery Owners Association of Nigeria who paid him a visit in Abuja.
Senator Enang stated that as soon as local refineries begin to function, the pump price of petroleum products would be forced to crash.
Enang explained the reason behind the increase in pump prices of petroleum products prices is due to the fact that the process of extracting, exporting, refining and bringing it back to Nigeria is very cumbersome and expensive.
“As we succeed with you, which I believe that we will succeed, we will eliminate and be able to crash the price of refined petroleum product because what makes refined petroleum products costly is one, the cost of freight, sending it abroad to be refined, you pay Port Authority, you pay NIMASA, you pay for the chatter of the vessels that take it there, you pay the duties in the in Nigeria, you pay the duties in the country that it is landing, you pay the duty of those countries, you pay the labour of those countries where they refined and then you bring them back, you pay the freight, you pay the vessel if it is not landing early and it is hanging somewhere in the sea, and all that is transferred to the price of the refined products.
“And finally you’ll now see that NNPC will put their price, Petroleum Price agency will put their price.
“So what Nigerians are actually paying for is not the real cost of the product, it is the services, and by the time we engage with you and we are able to have the domestic Nigerian Refinery, all those other charges will be eliminated and like you have been telling me, the price of refined petroleum products will come under N100 per litre”, he further explained.
He also asserted that the payment of subsidy was not benefiting ordinary Nigerians, but only a few corrupt individuals, hence the need to remove it became necessary.
“As we were locked down, the price of crude oil collapsed, I think it led consequently to the lowering of the price of refined product and I think we relaxed and we thought we’ve ended it now suddenly the price went up, we said look, we no more can sustain subsidy in this country because subsidy only benefits a corrupt set of people and it doesn’t really touch the ordinary man.
“And having withdrawn subsidy it becomes that refiners are petroleum product must sell it at a market-driven price, and the price went up, therefore, it becomes necessary for us to accelerate our engagement with you as our Nigerian resources to solve Nigeria’s economic problem”, he said.
Addressing the Association members, Senator Enang said for the purpose of integrating them and their efforts into the planning for the economy of Nigeria, the government had also engaged with the team that constructed the locally fabricated refinery in Ahmadu Bello University Zaria, and they attended a briefing with the Minister of Science and Technology.
“We’ve also engaged with the team in federal University of petroleum, Efurum, they have a department that is fabricating locally, Nigeria Refinery, which will produce and refine petrol diesel, kerosene and make other byproducts available for other institutions.
“So since after the last meeting, these are the things that we’ve done to take the ministry forward, so it became necessary to have to invite you one, to brief you on what we’ve done, that although we were on National lockdown, we were not locked up in terms of thinking and planning for the economy”, he added.
On his response, the National Chairman of Domestic Refinery Owners Association of Nigeria, Godwin Sunday suggested that a Presidential Committee be inaugurated to look into the activities and the demands of Artisanal Oil refiners in the Niger Delta.
He also requested that approval be given for the establishment of Modular refineries of 10 units of one thousand Barrels daily per Niger Delta state.
Sunday also asked that the Federal Government provide a guarantee for the refiners to the tune of $15 million per refinery.