By Wilson Adekumola
The Group Chief Executive Officer, of the Nigeria National Petroleum Company Limited, Mr. Mele Kyari, has disclosed that the removal of fuel subsidy would encourage more competitors wherefore, naturally reduce the current price of Premium Motor Spirit, also known as petrol.
Kyari made this disclosure while featuring on Arise TV’s Morning Show on Thursday.
The recent increase in the petrol pump price emanated from the announcement of the Federal Government’s subsidy removal of petroleum which consequently resulted to queues in fuel stations across the country.
The NNPC had on Wednesday said it had adjusted the pump price of petrol to reflect the market realities.
As a result of this development, several retail outlets sold the product between 550 and N800 in Abuja, Lagos, Ogun, depending on the state you reside.
However, Kyari opined that the removal of subsidies would create new entrants into the market and aid competition, and phase out monopolies.
According to him,“The beauty of this fuel subsidy removal is that there will be new entrants [into the market] because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place.
“As soon as competition comes in, people will become more efficient in their depots, in managing their trucks and in managing their fuel stations so that people can come to their stations. And it is showing already, right now, you will see motorists going to stations where they can have price differences, so this will regulate the market and on its own, the price will come down naturally and I don’t see any doubt about this.”