Senate supports total deregulation of petrol

THE Senate has called for total deregulation of premium motor spirit (PMS) otherwise called petrol. The Chairman, Senate Committee on Downstream, Senator Marafa Kabir Garba, CON, has argued that total deregulation is the solution and the 8th Senate is determined to give Nigerians a direction in the downstream and curb the corruption in the sector.

According to him, “we are addressing the governance aspect of the PIGB because we know that PIGB will address the challenges confronting total deregulation of the downstream sector.”

He said the Department of Petroleum Resources (DPR) will be made stronger in order to regulate effectively. Failure of the downstream sector necessitated introduction of PIGB, but it hasn’t seen the light of the day for several years.

“This assembly is determined to pass it and it will be passed latest by next month (April). We will later look at the fiscal terms and followed by the hits community issues. Dr Bukola Saraki, the Senate President, took it upon himself to ensure it is passed this year. As a nation, we have to make deliberate and cautious decision on what we want as a people.”

He said the Senate has ordered investigation into subsidy claims because the Nigerian National Petroleum Corporation (NNPC) collected over N5trillion as subsidy claim since 2006.

“The civil society and labour unions should frown against subsidy regime and embrace total deregulation. If you combine NNPC and marketer’s subsidy claims, you will see that it is over N9trillion in 10 years. This is almost twice of our budget.”Does a common man get value for this subsidy regime? If the money is directed into other infrastructure development, we would have gone far in infrastructure building. AGO is deregulated and we are better off. Why are people afraid of subsidy removal? Right now, government is indirectly paying subsidy.

“We have to be realistic and take the right decision. We have to choose between building more infrastructures and consuming subsidy. Deregulation will promote local refining of crude oil and create more value and generate employment.

“Competition will drive down the prices in the long run. Hypocrisy of the elites is what I see in regulation of petroleum price. Most big men don’t visit filling stations but Nigerians even buy it at above the recommended retail price. All the people benefiting from fuel importation will never let deregulation happen,” he said.