Recent fuel price increase due to deregulation, not direct hike — Akpabio

Senate President Godswill Akpabio has attributed the recent increase in petroleum pump prices to the deregulation of the sector, rather than a direct price hike. Speaking on the issue, Akpabio explained that the removal of consumer subsidies means Nigerians are now paying the actual market price for fuel.

He elaborated on the impact of the change, noting that it could lead to a reduction in fuel consumption.

He said, “I haven’t actually assessed what is happening in terms of pump price increase, but it’s not a pump price increase, it’s deregulation.

“If you are taking away the consumer subsidy and then want people to pay the actual price of what we consume, it means if you have five cars, you will now use one or two.

“It simply means that you are going to stop the idea of subsidy to make sure that the money is used for other things. So, I don’t expect any increase in pump price.”

Akpabio expressed confidence that market forces will regulate prices in the long term. He noted that increased competition from multiple suppliers, including production from Dangote and other refineries, could enhance availability and eventually drive prices down.

He acknowledged that initial price increases may occur but remained optimistic about future stabilisation.

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“I would expect the market forces to determine prices; I would expect that now that the NNPCL is no longer going to bring petroleum products into the country, it means those who have the capacity will bring it in, and the more the products are available, the cheaper the price.

“So at the beginning, it may seem to be increasing, but I believe strongly that with production from Dangote and other refineries when they become functional, and the fact that it is now open for all to bring in products into the country, I can assure you that we may not even see higher pump prices.

“So, please let’s not dwell on the increase in pump price. We will assess it, and if there is a need for us to intervene, we will intervene.”