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Former vice president, Atiku Abubakar and 2019 Young Progressive Party (YPP) presidential candidate, Kingsley Moghalu has commended the Federal Government’s decision to hands off regulation of fuel price and give marketers freedom to determine price of the commodity.
In a document signed by its Executive Secretary, Mr. Abdulkadir Saidu and released on Thursday, titled ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020′, the Petroleum Products Pricing Regulatory Agency (PPPRA) noted that henceforth the price of PMS would be determined by market forces.
“The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for Premium Motor Saint (PMS) shall take effect,” said PPPRA.
“The Agency shall monitor market trends and advise the NNPC and oil marketing companies on the monthly guiding Market-Based Price.
“The price of Premium Motor Spirit (PMS) advised by the Agency shall be guiding retail price at which the product shall be sold across the country.”
Atiku reacted in his verified Twitter handle on Friday, noting that the decision by the fuel price regulatory agency is a right move that ought to have come earlier when the nation’s economy was performing better.
“FG finally withdraws from the fuel subsidy and price-fixing bazaar that had been rife with corruption and stalling investments. This is something patriots have been calling for and for which I was demonised,” said the former vice president.
“The stoppage of subsidy and price-fixing is a right move, although it should have come earlier when the economy was stronger.
“FG and state governments should proceed to remove other impediments and roll out incentives to spur investments in the sector, especially the numerous refineries that had been licensed but are yet to be built. Then ensure the quality of fuel meets set standards. -AA.”
On his part, Kingsley Moghalu agreed with the former vice president that it was a right and necessary decision that was long overdue, adding that the continuous payment of fuel subsidy only deny the economy real growth and diversification and prevent the government from allocating resources to real human development and social infrastructure like healthcare and education.
“Subsidy removal/deregulation of petrol price by @NigeriaGov was long overdue, necessary, and is right. Govt should create enabling environment for individuals to create wealth and achieve their full potential, not stifle productivity by distorting or replacing the market,” Muoghalu noted.
“In a country without a clear ideology like ours, but which is essentially capitalist in orientation, excessive govt involvement in the economy has only created massive corruption and a rent-seeking State. This has been very harmful.
“The trillions spent on petrol subsidy could’ve built, staffed, equipped world class hospitals, better invested in education to give young people 21st century skills. This disastrous political populism that actually hurts Nigerians shouldn’t return with increased oil prices.
“Some wrongly think this populist econ (economic) management approach is “pro-poor”, but it blocks the economy from real growth and diversification, & government from allocating resources to real human development/social infrastructure like healthcare and education.This perpetuates poverty.
