Editor’s note: The government of President
Muhammadu Buhari has on May 11, officially
stopped the subsidy regime on premium motor
spirit. The price of petrol may now start from N145
per litre. Emmanuel O. in this piece first published
on Nigerian Bulletin lists three benefits of fuel price
increase.


The federal government of Nigeria, in a bid to
deregulate the downstream oil sector has
announced an imminent change in the pump price
of petrol.


According to Minister of State for Petroleum
Resources, Ibe Kachikwu, the new price for PMS
will not be above N145 per litre.
Here are three possible positive outcomes of the
fuel price increment:


1. Bye-bye pesky fuel queues
Yes, we’ve all been there. You’ve been on the queue
at the station for hours and when it’s your turn to
buy, the fuel attendance says “fuel don finish.” The
best thing to do at that moment is to hold
someone’s hands and hymn Kumbaya.


However, with the new rules put in place, those
pesky fuel queues may totally be a thing of the
past. Part of the decision FG made before
approving a new fuel price was to open the
importation doors to more businessmen. According
to Kachikwu, “any Nigerian entity is now free to
import the product, subject to existing quality
specifications and other guidelines issued by
regulatory agencies.”


As a result, the market is expected to be flooded
with the product. This will automatically make fuel
queues disappear. Heck, maybe we won’t be
needing fuel attendants at petrol stations again.


2. Cheap fuel. Maybe, most likely.
Don’t curse me yet.
Remember when MTN came to the Nigeria and
started selling a SIM card for N50k? What
happened after Airtel came? Glo? Etisalat? It’s the
same everywhere, competition always benefits the
customers. MTN and co now hawk SIM cards on
the streets and rates are also falling and becoming
competitive.


We can expect the same in the fuel market. A
strong competition between oil marketers will
surely drive down the price of the commodity.


3. Development of Nigeria’s refineries
According to Kachikwu, the new decision will
encourage investments in refineries and other parts
of the downstream sector.


He added that it will also prevent the diversion of
petroleum products and set a stable environment
for the downstream sector in Nigeria.


This article expresses the authors’ opinion only. The
views and opinions expressed here do not
necessarily represent those of NAIJ.com or its
editors.

https://www.naij.com/827552-must-read-3-positive-outcomes-fuel-price-increase-nigerians-list.html

simtosul:
Editor’s note: The government of President
Muhammadu Buhari has on May 11, officially
stopped the subsidy regime on premium motor
spirit. The price of petrol may now start from N145
per litre. Emmanuel O. in this piece first published
on Nigerian Bulletin lists three benefits of fuel price
increase.


The federal government of Nigeria, in a bid to
deregulate the downstream oil sector has
announced an imminent change in the pump price
of petrol.


According to Minister of State for Petroleum
Resources, Ibe Kachikwu, the new price for PMS
will not be above N145 per litre.
Here are three possible positive outcomes of the
fuel price increment:


1. Bye-bye pesky fuel queues
Yes, we’ve all been there. You’ve been on the queue
at the station for hours and when it’s your turn to
buy, the fuel attendance says “fuel don finish.” The
best thing to do at that moment is to hold
someone’s hands and hymn Kumbaya.


However, with the new rules put in place, those
pesky fuel queues may totally be a thing of the
past. Part of the decision FG made before
approving a new fuel price was to open the
importation doors to more businessmen. According
to Kachikwu, “any Nigerian entity is now free to
import the product, subject to existing quality
specifications and other guidelines issued by
regulatory agencies.”


As a result, the market is expected to be flooded
with the product. This will automatically make fuel
queues disappear. Heck, maybe we won’t be
needing fuel attendants at petrol stations again.


2. Cheap fuel. Maybe, most likely.
Don’t curse me yet.
Remember when MTN came to the Nigeria and
started selling a SIM card for N50k? What
happened after Airtel came? Glo? Etisalat? It’s the
same everywhere, competition always benefits the
customers. MTN and co now hawk SIM cards on
the streets and rates are also falling and becoming
competitive.


We can expect the same in the fuel market. A
strong competition between oil marketers will
surely drive down the price of the commodity.


3. Development of Nigeria’s refineries
According to Kachikwu, the new decision will
encourage investments in refineries and other parts
of the downstream sector.


He added that it will also prevent the diversion of
petroleum products and set a stable environment
for the downstream sector in Nigeria.


This article expresses the authors’ opinion only. The
views and opinions expressed here do not
necessarily represent those of NAIJ.com or its
editors.

https://www.naij.com/827552-must-read-3-positive-outcomes-fuel-price-increase-nigerians-list.html

only a deep thinking person(s) would understands this.This is very good.@ no 2 point,simply put Abundance= choice=freedom,in a country where Scarcity=Dependency= Control.

Sir u no make any sense what is MTN and co with fuel price simply the GOVT no understand how to handle this issue simply

Are u kidding me? fuel is gonna to be sold for as high as N200/liter.Reason this filling stations now have a union,they fix a price and everyone of them adheres to it Besides hws is govt gonna be able to make the marketers adhere to N145/liter?.Its unlike the Gsm business where everyone is OYO

was it not what GEJ was saying before you guys occupied Ojota?

Royals1st:
Sir u no make any sense what is MTN and co with fuel price simply the GOVT no understand how to handle this issue simply

What's is there you don't understand

The OP just gave a simple analysis of the short RUN and long RUN effect of the subsidy removal

Even an SS two student should understand that simple economics

Royals1st:
Sir u no make any sense what is MTN and co with fuel price simply the GOVT no understand how to handle this issue simply

What's there you don't understand

The OP just gave a simple analysis of the short RUN and long RUN effect of the subsidy removal

Even an SS two student should understand that simple economics

OP ur own zombism is powered by the sun