The withdrawal of subsidy on fuel and the recent announcement of a new pump price for the premium motor spirit or petrol by the Federal Government have been hailed by the Association of Luxury Bus Owners of Nigeria (ALBON) as decisions that would have positive impact on the availability of the products to end users.
Reacting the efforts by government to address the unending problem of scarcity, the President of ALBON, Sir Dan Okemuo, disclosed that members are of the view that the removal of fuel subsidy would also result in massive private sector investment in the downstream sector of the oil and gas industry.
“It is self-evident that no private investor would invest huge sum of money in a sector that is heavily and rigidly regulated by the Government”, Okemuo argued.
The association, however, appealed to government to plough the savings from the subsidy removal into the maintenance and rehabilitation of major highways across the country.
Last week while announcing government’s latest move to address the problem of availability of fuel in the country, the Minister of State for Petroleum Resources, Dr. IbeKachikwu, had disclosed that any Nigerian entity could now import PMS, subject to existing quality specifications and other guidelines issued by regulatory agencies.
Dr. IbeKachikwu, said all oil marketers would be allowed to import petroleum on the basis of foreign exchange procured from secondary sources.
The ALBON President also said: “The association notes with satisfaction that the de-regulation would ensure that petroleum products are readily available in the country as it is envisaged that private investors would embark upon both the importation of petroleum products and the establishment of private refineries.
“However, as we support the removal of fuel subsidy, we also urge the Federal Government to channel the money that would be saved by this removal to the development of the nation’s infrastructures especially the urgent repair and re-construction of major arterial roads across the country to enhance easy movement of people and goods across the country”.