The Traffic

Group Upbeat About Significant Drop in Petrol Prices
...commends Tinubu for reforms
A non-governmental organization, Friends of Nigeria (FON), has commended the substantial decrease in Premium Motor Spirit (PMS) better known as petrol prices that the nation is currently experiencing, saying that the falling prices attest to the efficiency of President Bola Tinubu’s reforms.

As of last Sunday, petrol prices have fallen to a record low of 899 Naira, a significant reduction from the previous highs of 1,200 Naira after the removal of fuel subsidy. 

Experts attributed this latest reduction in prices largely to the concerted efforts of the Nigerian National Petroleum Corporation Limited (NNPCL) in restreaming its refinery and Dangote Refinery also played a pivotal role in reducing prices since December.

Reacting to the development in Abuja on Thursday, FON commended President Bola Tinubu for his courage in ending the subsidy era, which it described as a major milestone for the nation's economy. 

FON’s national coordinator, Razaq Mallam said, “The removal of subsidies has allowed market forces to play a crucial role in determining prices, fostering healthy competition within the industry. This shift has led to a more dynamic and competitive market environment, benefiting consumers and businesses alike.

“We have taken time to research and what we found was that one of the key factors contributing to the reduction in petrol prices is the resurgence of local production. Through the intensive efforts of NNPC, the Warri and Port Harcourt refineries are now back in operation, significantly boosting the domestic production of PMS. These refineries, along with the Dangote refinery and other local refining capacities, are playing crucial roles in meeting the nation's demand for petrol and other products.

“The increased local production also means a notable reduction in the reliance on petrol imports. This reduction in imports has further stabilized the market, contributing to the lower prices that consumers are currently enjoying,” he explained.

 
Friends of Nigeria commended President Bola Tinubu’s government's efforts to fully deregulate the sector, allowing for a more competitive and efficient market. 

Malla noted that “This deregulation has encouraged investment in local refining capacities, further boosting domestic production and reducing the need for imports. This has been instrumental in achieving the current milestone of reduced PMS prices. 

“We want to emphasise the importance of continued collaboration and investment in the energy sector to sustain these gains and further enhance the efficiency and competitiveness of the downstream sector.

“This is because the reduction in petrol prices has a positive impact on the nation's economy. The lower prices will alleviate the financial burden on consumers, providing much-needed relief to households and businesses. Additionally, the increased local production and reduced imports would strengthen Nigeria’s energy security, ensuring a more stable and reliable supply.

“We at the Friends of Nigeria are hopeful that lower petrol prices will stimulate economic growth by reducing the cost of transportation and other goods and services. This, in turn, will positively impact the overall cost of living, benefiting Nigerians.

“We are consequently calling on businesses and all stakeholders to take the necessary steps to ensure that the benefits of reduced PMS prices are passed on to consumers and that the gains from increased local production are reinvested in the sector,” Mallam stated.

He expressed optimism about the future of Nigeria’s energy sector and its potential to drive economic growth and development in the country.