CPPE advises NNPCLtd to adjust own price to cushion economic impact

AS the removal of petrol subsidy continues to take its toll on Nigerians economically, the Centre for Promotion of Private Enterprise (CPPE) has suggested that the Nigerian National Petroleum Company Limited (NNPCLtd) should reconsider price adjustments. 

The chief executive officer of the Centre, Muda Yusuf, told The ICIR that the national oil company should consider selling petroleum products at a price which is 10 per cent less than that of other private sector marketers.

He argued that the NNPC, being the sole importer of petroleum products, would have easier access to the dollar.

He believed such intervention by the national oil company should be able to lessen the economic burden on Nigerians and demonstrate the desired social sensitivity by the government.

Yusuf further said that government must be seen to be concerned about the social outcomes of its reform, without prejudice to the new status of the NNPCLtd as a public limited liability company.

He said government should immediately entrench competition in the importation and refining of petroleum products to put an end to the current monopoly structure of supply of petroleum products in the country.

He said that the NNPCLtd’s monopoly as supplier of petroleum products was partly responsible for exploitative pricing of petroleum products – diesel, aviation fuel and petrol – pointing out that the best strategy to protect consumers in any economy is to create a good and sustainable competition framework.

He also said that since the new policy is affecting operators in the transportation industry, there is the urgent need for government to consider introduction and immediate implementation of key fiscal measures.




     

     

    He suggested that import duty, value added tax, and other port charges on semi-knocked down parts for the assembly of mass transit buses should be waived.

    This, he explained, would not only make mass transit buses cheaper, it would also enhance industrial capacity utilisation of the vehicle assembly plants in the country.

    He suggested, “Import duty on passenger buses of 15-passenger capacity and above should be reduced by 50 per cent for the next one year.

    “Import duty on fairly used cars of engine capacity of 2000cc and below should be reduced by 30 per cent.This will enhance access of the middle class to vehicle ownership in the light of the high deficit in the provision of public transportation.”

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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