MY VIEW ON PETROLEUM SUBSIDY REMOVAL

The implications of fuel subsidy removal will absolutely lead to increase in the prices of other essential commodities and transportation fare.

In all forms of economic systems adopted by governments of various countries, there are absolutely economic capitalists and socialists interests involvement in capitalism, socialism, communism and mixed economic systems.

In capitalism, profit-making is the motive. There are choices of production and consumption thereby making commodities available at competitive prices to the consumers which is absolutely determined by the forces of demand and supply.

In socialism led economy, it is driven by provisions of public welfarism with minimal profit.

In removing petroleum subsidy, genuine economic palliatives measures aimed at cushioning the effects of subsidy removal must be put in place to meet people's expectations.

In considering the fixation of petroleum pricing, the cost of crude oil refining, landing and transportation costs are considered before fixing the prices, it should be a benchmark prices that will not adversely affect the masses population who are at the receiving end of bearing the adverse effects of subsidy removal.

The petroleum marketers, petroleum stations and distributors can still maximize profit without increasing the prices of petroleum products of kerosene, diesel and petroleum motor spirit (PMS) without increasing prices beyond the affordability of the population.

There must be regular production, refining and supply of petroleum products to ensure affordability and it should be within the reach of consumers.

The implications of fuel subsidy removal will absolutely lead to increase in the prices of other essential commodities and transportation fare.

Stakeholders in the Petroleum industry are interested parties in the fixing of prices of petroleum products. There are vested interest in the money spinning Petroleum industry

Going Forward:

Government, NNPC, Marketers, Petroleum Stations and Distributors must collectively work towards ensuring adequate production, and distribution at affordable pricing, still whilst making normal profit and not supernormal profit.

Wealthy Nigerians and the general population with interest in the petroleum sector should be given Oil licences to come onboard to establish refineries such as Dangote Oil and the likes with a view to ensuring sufficient production, refining, marketing and distribution of petroleum products including PMS, kerosene, diesel, engine oil, and aviation fuel to serve the numerous consumers of petroleum products.

Sufficient production and supply of petroleum products will absolutely lead to price stabilization or decrease in prices of petroleum products.

Our refinance should be made functional for optimum production.

Nigeria is a member of OPEC and there must not be scarcity and unnecessary hike in petroleum prices.

There must be regular maintenance and adequate local content refining to ease the scarcity of petroleum products.

Palliatives measures intended to put in place MUST serve the interests of majority of the Nigerian population who are at the receiving end of the removal of petroleum subsidy.

The intended palliatives measures must not have a politcal and economic undertones.

Intending palliatives measures must be strictly monitored and implemented by the appropriate and constituted regulatory agencies with a view to achieving its aims.

The NNPC in collaboration with the Federal Ministry of Petroleum Resources, Marketers, Depots and Petroleum Stations must ensure sufficient production and distribution of petroleum products and thereby prices shall be regulated and stabilized and revenue realized after subsidy removal must be channeled appropriately to real development of the country.

Simeon Okoro is both an economist and educationist. He's a published author of books on economics and English language.