REVEALED: Why Fuel Price May Never Be Increased
Recently, there were speculations that there will be an increase in the pump price of fuel.
That did not happen.
There had been calls for government to hand over all businesses relating to oil and gas to private businesses.
Even the Minister of State for Petroleum Resources, Ibe Kachikwu echoed similar sentiments recently when he said the government plans to end fuel importation in 2019.
But that is unlikely to happen as government may have no choice to continue to import petrol if it wants to control prices.
If government stops importing petrol and allows only businessmen to do that, prices would go up and that is not good for an administration which plans to remain in Aso Rock after the 2019 polls.
That was the point the Acting President Yemi Osinbajo made on Thursday while speaking at a forum in Abuja.
“There are those who are saying we need to deregulate fully. Why are they saying that? It is because if we do not deregulate, it is not cost-effective for those who are producing PMS to sell. At the same time, if you deregulate completely, prices of everything will go up.
“So, there are those complications, meaning we got to moderate all those things. Government has to come in to a certain extent and this is what is currently going on to try and balance things up. Because we cannot have just overnight another massive deregulation. If you do that, the consequences will be very dire for the economy,” Osinbajop said.