- Isong conveyed this message during the Association of Energy Correspondents (NAEC) International Strategic Conference 2023 held in Lagos on Thursday
The Major Oil Marketers Association of Nigeria (MOMAN) has advised the federal government against implementing a partial fuel subsidy as a solution to the increasing petrol prices.
Clement Isong, the CEO, emphasized that any immediate measures should be precise, affordable, well-planned, and temporary, without causing negative repercussions on Nigeria’s economy.
Isong conveyed this message during the Association of Energy Correspondents (NAEC) International Strategic Conference 2023 held in Lagos on Thursday.
He further stated that MOMAN supports short-term interventions in imported petroleum product prices, provided they are time-limited and aimed at assisting consumers without detrimental impacts on the country’s economy in the long term.
He also acknowledged that the deregulation of the downstream sector had attracted investment throughout the value chain of the petroleum industry.
He, however, cautioned that the investment rate would significantly increase if the pricing of commodities becomes favourable and economically viable for investors.
The CEO said, “Deregulations are meant to enable people and businesses. Therefore, there is a need for the right decisions to be made based on the resources available.
“When the commodity pricing is right, this would serve as a confidence booster for the sector.
“If spending goes down, the industry should reduce its costs; people should consider the use of alternative energies available.”
He also said petrol prices would continue to rise due to market dynamics and the cost of crude oil.
Mr Isong said the price increase would likely compel consumers of petroleum products to prioritise energy efficiency and opt for alternative fuel types such as Compressed Natural Gas (CNG).
According to him, this will lead to a transition away from diesel-powered generators and modes of transportation in favour of CNG.
“The rise in diesel costs should help the average consumer move away from diesel-powered generators and diesel-powered modes of transportation rather than subsidise.