Ending Petrol Subsidy Extremely Difficult But Inevitable – MOMAN

Although removing subsidies for Premium Motor Spirit (PMS) is extremely tough, the Federal Government has no choice given the current economic situation, according to the Major Oil Marketers Association of Nigeria (MOMAN).

In order to successfully wean Nigerians off of the petrol subsidy, MOMAN also urged the government to make major investments in a number of fields, including public transit, healthcare, and education.

The Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference, which just ended in Lagos, was where Olumide Adeosun, MOMAN, announced this, according to a statement placed on MOMAN's website on Friday.

Energy Transition, PIA, Petroleum Pricing, and the Way Forward for the Downstream Sector were the subjects of Adeosun's speech.

Adeosun, who was represented by Clement Isong, the Chief Executive Officer of MOMAN, claimed that weaning Nigerians off of cheap PMS, better known as gasoline, will continue to be very challenging.

“It is something that must be done as there are no more viable options.

“We are told that this year the subsidy bill to the Federal Government may be between N5 trillion and N6 trillion. Clearly, Nigeria cannot afford this.

“To wean Nigeria off this subsidy, a lot of investment must be done to sensitise Nigerians in convincing them and finding alternatives.

“We need to begin to remove the subsidy and mitigate the pains Nigerians will feel when petroleum prices begin to manifest their true value.”

Marketers, according to Adeosun, are confident that the industry is moving on the right path as a result of the passage of the great Petroleum Industry Act (PIA) 2021.

“We are now at the point of implementation, which is taking a bit longer than hoped but this is not necessarily a bad thing.

“The President postponed the implementation of free market pricing, which has caused a slowdown with respect to benefits expected from free competitive open market pricing, such as new investments and subsidy removal, ” he said.

According to Adeosun, the marketers were likewise satisfied that the Federal Government's declaration of the "decade of gas" in January 2021 represented the best course of action.

However, he claimed that the rise in gas costs across the board and the product's unavailability had made it slightly more challenging in the rollout.

The average Nigerian, who was supposed to switch to gas not just for cooking but also for generating electricity, is having difficulty as a result of the partial regulation of PMS pricing, according to Adeosun.

“It creates an aberration and additional challenge for the adoption of gas, as most people are still dependent on cheap PMS for their cars and generators.”

Although the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has a significant role to play in directing our destiny, the market is ultimately the best regulator, in his opinion.

“The market regulates prices if you are too expensive people would not buy from you.

"The market regulates quality as well as customer service. The market also rewards the best in class.

“We need to move to an era of transparency and information dissemination.

“Energy correspondents need to share as much information as possible with the market and public with respect to cost prices, quality, product specifications, customer service and pump prices.

“That is the best regulation you can ask for,” Adeosun said.