Experts React to Petrol Subsidy Removal by FG as NNPC Announces Price Adjustment

Prof. Wunmi Iledate, Professor Emeritus Omowumi Iledare, the Ghana National Petroleum Commission (GNPC) Chair of the University of Cape Coast (UCC), has said. NNPL recently released pricing framework, which looks to me like a dominant firm market behaviour. It is basically anticompetitive that is derived from a monopoly import market structure for PMS.. ” NNPCL is basically setting the price of PMS indirectly as a dominant firm in the downstream market, which is really not supported by PIA 2021. Unfortunately, the Petroleum Authority, which ought to have checkmate such a firm dominant behavior is handicapped Publishing its price just because BAT inadvertently said what he should not have said seems authoritarian and not transformational. I guess presidential pronouncement has became synonymous to petroleum policy pronouncement of the FG. I guess this perhaps, explains why the PIA2021 was disregarded since August 2021 because of the pronouncements of PMB on subsidy. A democracy as big as Nigeria cannot be governed on the basis of political expediency. I am a little worried at the suddenness at which NNPCL released this pricing framework just like that. The Authority and perhaps the Consumer Protection Agency need to ensure that Consumer surplus has not been compromised. Just an opinion” Prof Iledaresaid.

Dr Dunni Owo, President, Women in Oil and Gas responded saying “Prof, I share your sentiments. Its an insensitive move..A so called unguided pronouncement should at least have sequence of action for implementation with defined timeline not a response to stimuli”

The Managing Director of 11 Plc, Dr. Tunji Oyebanji, said as a consequence of the adjustment in prices ex-depot, marketers also have no choice but to adjust their prices as they cannot sell at a loss. But on balance, given how long we have been battling to remove the subsidy(almost 30years ) and its devastating impact on the economy, the “mistake ” maybe the catalyst to get us out of this quagmire despite the unpleasant consequences.

“NNPCL did not release their pricing framework or retail prices to the publi as assumed. Apparently, what leaked was their instructions by NNPC Retail or NRL to their service providers to go change their station pump prices.As NRL also sell exdepot to independent filling stations, they are obliged to publish their exdepot prices.

NNPC Trading or NTL, who remain the sole importer supplier, also need to publish their selling price to coastal.buyers.

This does not in any way diminish the call to vigilance in guarding against abuse of a dominant market position by an operator who remains the sole supplier of PMS for now.

Vigilance by NNPCL themselves, the regulators, NMDPRA and FCCPC, and also by civil society and the market itself!” MOMAN Secretary General said.