Experts Warn Against Further Reduction in Pump Price

Those clamouring for further reduction in fuel pump price in the country have to desist from that as experts have warned that further reduction of fuel pump price would only enrich oil marketers at the detriment of everybody.

Speaking exclusively to MMS Plus Weekly, the Director, Research and Advocacy of the Lagos Chamber of Commerce and Industry, Vincent Nwani said that further reduction in pump price will aggravate the situation especially in the light of falling crude prices.

According to him “it will aggravate the situation and create more problems for the country.  It is reduced by N10 and we can feel the impact. If you reduce it again further, the impact if will have is that the amount of money government will be paying as subsidies to oil marketers and importers will be tripled.

“The money that should have been used to tar road, pay salaries, build more hospital, create more employment, pay judges, will have to be used to pay oil importers and marketers. It will amount to using money earmarked for developmental purposes for subsidy.”

Also corroborating the assertion is Blessing Akintayo, a Senior Staff of Richardson Oil and Gas .

Speaking in a telephone conversation she said that even though the masses would rejoice at a further reduction of fuel pump price, it was indirectly detrimental to them and the economy generally.

“If pump price is further reduced, first of all, it will be favourable to the citizens, but will affect the government very negatively in the sense that the government will have to subsidize the more she continued “fight now our foreign reserve has almost been depleted and we are running into debts. We are borrowing to sustain our economy.

We have crude but cannot sell. The Untied States are no longer buying our oil because of the shale gas revolution, we are competing with the countries from the middle east to sell. We have crude and still buying refined oil.

She further stated that the prevailing circumstances had compelled government to resort to multiple taxes.

“if we reduce pump price the government might not be able to maintain for a while and will drive them into resorting to taxes. Right now, the government is increasing tax everywhere. Just yesterday, I heard that government is trying to realize N75billion from non oil export sector by taxing”.