Home Business Abuja residents express mixed reactions to reduction in petrol pump price

Abuja residents express mixed reactions to reduction in petrol pump price


Abuja- Motorists in the Federal Capital Territory (FCT) have expressed mixed opinions over the Federal Government’s reduction of petrol pump price from N87 to N86 per litre at NNPC stations from Jan. 1, 2016.

A cross section of the motorists, at different petrol stations in Abuja on Wednesday, told the News Agency of Nigeria (NAN) that they were positive that it would ease the suffering of Nigerians.

Some others, however, said it would not make any difference.

Mr James Akande said that the decision was “a welcome development as long as it would create availability of the product for Nigerians”.

Akande said though the action might not bring an immediate change in fuel availability in the country, Nigerian’s should focus on the long term results.

“As long as the measure will lead to availability of the product in the market then it is a very welcome idea,’’ he said.

Another motorist, Mr Jonathan Momoh, said that considering the current economic situation, even when the difference was not much, it was still appreciable.

”Directly or indirectly, most things depend on the cost of fuel because you need transportation to move around to provide goods or services; so it should affect the cost of products positively,’’ he said.

He said if the policy was properly implemented and everyone in the business was carried along, the problem of scarcity of the product would not occur anymore.

However, Mr Kelechi Okoronkwo, another motorist, does not agree with the new price, saying it will not be beneficial to the economy.

“It does not add up because subsidy is going to be removed and the international price of crude oil has not picked up, yet we are reducing the pump price of petrol in Nigeria.

“I don’t see how the economy is going to be improved with this kind of controversy in pricing. Besides, with the imminent deregulation of the sector, what right does the government have to fix the price for the marketers.

“Government ought to hands off at this stage and allow the marketers to operate smoothly,’’ he said.

An official at the NNPC Mega Station in Central Area of Abuja, who preferred anonymity, said that it would affect the general price of other products because of the multiplier effect on them.

“We expect that the new price will reduce hoarding of the product and that the consumers will get more.

“Nigerians should stop panic buying because most times they buy in excess of their needs and that is not necessary because they do not know what the market will be tomorrow.

“People should buy what they need and not in excess and for the marketers, it is not advisable for them to hoard the product because they cannot foresee the future of the market,’’ the official said.

Another official at Forte Oil filling station, Central Area Abuja, expressed the fear that it might reduce sales of the product as many motorists would rather buy in small quantities than fill up their tanks which was the usual practice.

Another official at Oando filling station in Wuse Zone 4 Abuja, said it was a good idea but not very realistic as it would not affect the quantity of sale of the product.

“The reduction in the pump price is not the problem but the availability of the product; besides, will reduction in pump price give us what we are looking for.

“We should be thinking of diversifying the economy; Nigeria is a place where people do not pay tax yet you are reducing the pump price of fuel.

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“What will you use in running the government; taxation should be one of our core principles but it does not work in Nigeria. I do not agree with the reduction in pump price for now.’’

NAN reported that the Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Mr Farouk Ahmed, on Tuesday announced the reduction of the pump price of PMS.

Ahmed said that other oil marketers would sell at N86.50k per litre.

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