There is nationwide pandemonium over the increment in the price of petrol. The Minister for state of Petroleum Resources Dr Ibe Kachikwu, announced an increment on official pump price from 88.6 Naira to 145 Naira per liter. Nigerians have since been pouring out their discontent with the removal of fuel subsidy.
However, the increment has blinded most citizens as we refuse to look at the positive effects of this the new price regime. According to a press release by Kachikwu, Nigerians stand to benefit from the new price regime in so many.
On this list are five of them.
No more Nationwide Queue
Truly it’s a terrible situation when you walk into a fuel station and see a large crowd of customers battling to buy fuel. Economically the hours we spend at these fuel stations reduce our level of productivity as a nation. According to Kachikwu “any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by regulatory agencies.” This simply means the importation doors to more businessmen.
Possible Reduction Of Price
The new petrol price will be an opportunity for marketers and business men home and abroad has this will create a healthy competition among marketers. Marketers will strive to sell at a lower rate in order to attract more customer and of course every sensible consumer will be after the petrol station that sells the product at a cheaper rate.
Development of Local refineries
According to Kachikwu, the new decision will encourage investments in refineries and other parts of the downstream sector.
He added that it will also prevent the diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.
Reduce Hoarding and Diversion Of petrol Product
The recent petrol scarcity can be attributed to act of hoarding by marketers who claim they didn’t have enough forex to import more. Also Nigeria has been exporting petrol products illegally to some neighbouring countries such as Chad, Niger and Cameroon. However the new price regime will end that, Kachikwu also stated that “the relevant regulatory institutions (DPR, PPPRA) will be further empowered to ensure strict compliance with market rules by all stake holders and consumer protection”.
Create Over 200,000 Jobs
Already the fuel scarcity had force marketers and other stake holders in the industry to stat cutting cost due to the in availability of Forex to import goods. Cutting cost here will be done by laying off employees. According to Kachikwu, “the new price regime will create over 200, 000 jobs nationwide through new investment in refineries and retails and it also prevent the loss of 400,000 jobs in existing investments”.