Uche Uwaleke, a Professor of Finance and Capital Market, says the July price band for Premium Motor Spirit aka petrol, means the federal government is ready to end subsidy regime.
The former Imo Commissioner of Finance said this in an interview with the News Agency of Nigeria (NAN) on Friday.
The Petroleum Products Pricing Regulatory Agency (PPPRA) on July 1 announced a price band of N140.80 to 143.80k per litre for petrol pump price.
In his reaction, Uwaleke said the Nigerian economy was fortunate as the OPEC+ production-cut agreement was yielding positive result and helping oil price recovery.
The don observed that this had translated to higher cost of petroleum products imports.
He said until Nigeria develops the capability to refine enough crude oil for domestic consumption, “the pump price of PMS will continue to be exogenously determined. This is the sad reality.”
Uwaleke stressed that Nigeria could not afford fuel scarcity as the government had lifted the ban on interstate travel as part of measures to restart the economy.
The Professor called for the full deregulation of the downstream oil and gas sector of the economy.
He expressed confidence that this would pave way for private investments and generate a competitive environment that will drive down petroleum products prices ultimately.
“Only then, will the hand of the PPPRA become less visible,’’ Uwaleke added.