FORMER Minister of Petroleum and Energy,
Prof. Tamunoemi David-West, said that
Nigerians should expect sharp drop in
petrol price
from the current N87 to about
N40 per litre, saying, “the president-elect,
Gen. Mohammed Buhari, will reduce the
fuel pump price to N40 per litre.”
In a telephone interview with Vanguard, the
former minister argued that Nigeria
produces millions of barrels of crude oil
daily, and if properly harnessed will boost
the performance of the industry.
His words: “I want to assure you that by
the time he takes over, petrol will be
dispensed at N40 per litre. This is possible
and he has the credibility to make it work.
The major assignment of the president-
elect when he is eventually inaugurated is
to restore confidence to the industry.
He noted that the president-elect is
familiar with the petroleum industry,
adding that he is a straight forward person
that has respect for democratic principles.
“As military head of state, he dealt with the
Federal Executive Council with the tenets
of democracy. Buhari will build new
refineries to make petroleum products
available for the masses. No responsible
government will allow the masses to suffer.
“He will strengthen the refineries within a
year. It is possible as we won’t spend any
amount in setting up a green field refinery.
We already have a blueprint as we shall
use what we have to get what we want,” he
added. He further stated that on many
occasions, the president – elect had
disclosed that the subsidy initiative is a
fraud which has distorted the progress
expected in the sector.
He is also said to have frowned at the
spate of corruption, which has
characterised the subsidy regime to
include the trillions of Naira spent on both
Petrol and Kerosene subsidy within the
past few years, thus inhibiting efforts to
properly carry-out the Turn Around
Maintenance TAM, for the refineries. He
added that on countless occasions, he had
argued that the country is forced to pay for
scam carried out by oil cartel.
Also contributing, a UK-based economic
analyst, Mr. Seyi Odetola, noted that the
president-elect has expressed doubts on
the credibility of the subsidy claim. He
added that there may be the need to
investigate the several claims made by
marketers, which will further reinforce his
earlier submission on the subsidy claim.
According to him; “The fact that most
filling stations in the country are now
dispensing petroleum products after the
presidential election, despite the threat by
major oil marketers to stop selling the
product, in view of the subsidy arrears
owed to them by the Federal Government,
indicated that most of the marketers have
been benefiting from the fraud.
Removal ofsubsidy
He argued that “Where did they get funds
to import the product, given the nature of
the forex? If after the presidential election
fuel is still available as if nothing had
happened, it is then apparent that there is
no fuel subsidy. “It would be difficult for
him, to unitarily remove subsidy without
the proper consideration of the plight of
the major players in the sector.
He will need to re-appraise the cause of
inefficiency of the sector.” He further
hinted that the president-elect, with his
pedigree and respect for the rule of law,
will completely phase out importation by
the time the local refineries are working.
This, according to him, will totally remove
subsidy, adding that subsidy as it is
presently constitutes the promotion of
corruption and impunity.
“I am optimistic that the president-elect
will look into the subsidy regime as soon
as he finally settles down for the business
of governance. He stressed that renewed
attention will be given to the revamping of
the four refineries as well as focus on the
construction of new ones.”
He concluded that “In the long term,
through the confidence that will be
restored in the downstream and upstream
sectors, investors will be encouraged to do
business which will stimulate the growth
from the level it is.
On his part, the Director, Strategic
Planning, Research Intelligent, Mr.
Olubunmi Martins, argued that the subsidy
regime is riddled with corruption, a sign
post of the present administration. He said
the challenge before the industry is the
gradual restoration of the local refineries,
which will take care of the local
consumption for petroleum products.
He insisted that if activities at the various
refineries are up scaled up, subsidy will no
longer be a major concern in the country.
He however urged the president-elect to
scrutinise the various marketers, as most
of the companies were floated solely for
the sake of benefiting from the subsidy
regime, thereby snowballing into cartels
that have held the sector back.
Olubunmi maintained that subsidy has
distorted all the major economic activities
that should have taken place in the
country. “I am still at a loss with the
concept of the whole subsidy, what is
being subsidised and who are the
beneficiaries? But it will be unwise for the
president-elect to remove the subsidy
immediately he takes over the mantle of
leadership, as such an action could force
him into a trap set by the oil cabals.
“Notwithstanding, Gen. Buhari will have to
do a complete evaluation of the sector to
properly understand areas of non-
performance and take appropriate action,”
he added.
