Prof. Wumi Iledare, former President, National Association of Energy Economies (NAEE), says that reducing the pump price of Premium Motor Spirit (PMS), also known as petrol, is a short term solution to the nation’s supply situation.
Iledare said this in an interview with our reporter in Abuja on Thursday.
It was reported that the federal government after a meeting with the organised Labour on Dec. 7, agreed to reduce the pump price of petrol by five Naira, effective Dec. 14, 2020.
“Our discussion was fruitful and the Nigerian National Petroleum Corporation (NNPC) which is the major importer and marketers of petroleum product and customers have agreed that there will be a slide down of the pump price of PMS.
“The price cut will get us about N5 per litre and the price cut will take effect from next Monday, (Dec. 14),” the minister of Labour and productivity, Dr Chris Ngige, had said.
But Iledara said that the decision remained a short term solution to the situation in the country.
He also noted that the decision was also not in favour of the deregulation of the downstream oil and gas sector.
“All things are lawful but not always expedient.
Reducing the price is economic populism and may seem okay in the short run but it may make the public more suspicious of and resistive to deregulation benefits,’’ he said.
He further called for the speedy passage of the Petroleum Industry Bill (PIB) to help the development of the oil and gas industry for economic growth and development of the country.