Business
Association Okays Subsidy Removal …Wants Refineries Fixed
The Natural Oil and
Gas Suppliers’ Association of Nigeria (NOGASA) has applauded the decision to remove the subsidy on Premium Motor Spirit (PMS), also known as petrol.
The association, however, called on the Federal Government to fix the refineries.Secretary, Board of Trustees of the association, Chief Eddy Nwosu, who briefed newsmen on Saturday in Abuja said the removal of subsidy would help transform the oil and gas sector.
He,however, advocated that the deregulation would have been done without any price cap, as the imposition of a price cap would hinder competition which should drive down the price.
“The removal of subsidy is eminent, but we are worried about the price benchmark of N145 per litre.
“The removal of subsidy should be full blown to promote effective competition in the oil and gas sector.
“PPPRA should only regulate the importation of petroleum through their template in a deregulated sector.
“We also implore the Federal Government to as a matter of urgency, repair the existing oil refineries and create an enabling environment for investors to build new refineries.
“These outlined factors, driven by demand and supply, will determine the price and ultimately ease the suffering of Nigerians,” he said.
He urged oil and gas suppliers to go about their normal business, saying that the Federal Government was making conscious efforts to reorganise the sector.