Petrol prices in Nigeria may increase to as much as N800 per liter if the government removes subsidies on the product, according to the Major Oil Marketers Association of Nigeria (MOMAN).
In a statement, MOMAN said, "The removal of subsidy on petrol will result in an increase in pump price to N800 per litre." The association also warned that the removal of subsidies could lead to an increase in the cost of goods and services, as well as inflation.
The government currently subsidizes petrol to keep prices low for consumers, but MOMAN suggests that this is not a sustainable solution. Instead, the association recommends that the government invest in infrastructure and regulations to improve the efficiency and competitiveness of the domestic oil industry.
"We believe that the government should focus on creating a conducive environment for the growth of the downstream sector of the oil and gas industry, rather than relying on subsidies," MOMAN said in the statement.
Despite the potential increase in petrol prices, MOMAN emphasized that it is committed to ensuring a steady supply of the product to consumers.
"We assure the general public of our continued commitment to ensuring a stable and adequate supply of petroleum products to all parts of the country," the association said."©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.