The Federal Competition and Consumer Protection Commission’s Executive Vice-Chairman and Chief Executive Officer, Babatunde Irukera, has stated that the competitive market is the best market for consumers.
According to Arise News, Irukera asserted during an interview that a competitive market offers variety, fair pricing, innovation, and the assurance that you received what you wanted for the best price.
He explained that the presence of subsidies simply fostered high pricing and decreased efficiency, thus their elimination will eventually motivate producers to become more efficient to draw in more customers and, in turn, provide a more competitive product for the players in the oil industry which would lead to better pricing and will, in turn, benefit consumers in the end.
“The only thing that is undeniably certain is that the optimal price of the commodity is what is negotiated in the marketplace where all the competitors are furiously fighting.
“In general, subsidies do not encourage efficiency; in fact, they even support high pricing. Because there is no incentive to be efficient or to get equipment that performs better than the equipment you now have, corporations are essentially what the government is subsidizing, rather than consumers.
“And so, for example, if there is no subsidy and the operators are not meeting to discuss price, that is the first step.”
“Thus, we shall subtly examine organizations like the Independent Petroleum Marketers Association of Nigeria.
“Once that changes and everyone is in a competitive market, prices will be fairer because everyone will want to be efficient”
Prices will be more equitable after this is no longer the case and everyone is in a competitive market since everyone will seek to maximize efficiency and gain business and competitiveness.
He then added that although the decision to end the subsidy may initially present some difficulties, doing so will ultimately benefit all customers and be the correct course of action.
