Kehinde Fajobi
Gabriel Ogbechie, Group Managing Director of Rainoil Ltd, has cautioned Nigerians to brace for full market prices on petroleum products as the federal government’s deregulation of the downstream sector takes full effect.
During a live appearance on Channels Television’s Business Morning on Tuesday, Ogbechie supported President Bola Tinubu’s decision to remove the fuel subsidy, stating it would foster healthy competition within the sector.
He remarked that the price of Premium Motor Spirit (PMS) has seen a dramatic rise from ₦175 per litre on May 29, 2023, to ₦1,300 per litre in some areas.
“President Tinubu did the right thing by saying the subsidy was gone. He removed the subsidy and then we saw the price of petrol slide upwards,” Ogbechie said.
While the government had previously stabilized prices, Ogbechie noted that such interventions would no longer occur, emphasizing that marketers must now source and set their prices independently.
He added, “The government now says marketers must source their products and fix prices.”
Ogbechie further explained that the prices of petroleum products would fluctuate based on changes in crude oil prices and the exchange rate.
He advised Nigerians to be prepared for market-driven prices, saying, “If we see a massive drop in the price of crude oil, the price of petrol will also drop. If we see a drop or devaluation in the exchange rate, there will also be a drop in the price of petrol.”
He concluded by reiterating the uncertainty surrounding future price trends but emphasized that deregulation is here to stay, warning, “Nigerians should just be ready to pay the market-determined prices for petroleum products.”