By Temitope Akintoye,
The Major Oil Marketers Association of Nigeria (MOMAN) has advised that pump price for petroleum products, especially of Premium Motor Spirit (PMS), should be deregulated and subsidy removed in order to benefit the sector and the nation as a whole.
The body explained that petroleum subsidy has yearly taken funds that could be expended on other equally important sectors such as health and education, and that if removed, would allow market forces drive the true product pump price.
The Chairman of the association, Tunji Oyebanji, added that the price deregulation, if implemented, would create sustainability in the downstream sector and that it would also boost the nation’s economy in various other sectors.
Oyebanji, in a statement released to newsmen on Thursday, stated that it was not appropriate that government would be unable to increase the pump price of PMS, irrespective of existing market price per barrel of the product.
He reiterated that such price policy posed great economic risks for the nation as it led to high and unsustainable subsidy payments which in turn, denied other economic sectors the necessary funds for growth.
The association boss, while addressing the coronavirus threat in the nation, said that the incidence of cases in Nigeria had showcased the inadequacies being faced by the nation’s health sector and that availability of funds to be injected had been cut short by the country’s dependence on petroleum subsidy payments.