Let market forces determine petrol prices – NACCIMA

Fuel pump

The Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture has urged the Federal Government to allow market forces to determine the prices of Premium Motor Spirit, otherwise known as petrol.

The association made this known in a recent statement signed by the President, NACCIMA, Dr. Bassey Edem.

Edem in the statement commended the Federal Government for taking the bold step of removing subsidy on petrol noting that it had reduced incessant fuel scarcity and the pressure on the nation’s external reserves.

He however noted that a deregulation regime that allowed government to influence pricing was not good for the economy and counselled that the government should allow market forces to determine price instead of fixing a price ceiling of N145 per litre.

He added, “Accordingly, we counsel that the Department of Petroleum Resources and the Petroleum Products Pricing Regulatory Agency be restructured and merged into one body for better monitoring and efficient service provision.

“We wish to reiterate the need for government to ensure quick commencement of budget implementation to alleviate the negative impact of this policy on the purchasing power of the average Nigerian.

“In view of the expected reduced pressure on our foreign reserves which this policy will bring about, it is also important that the resultant benefit on our foreign exchange allocation be directed more towards the real sector to hasten development of our economy.”

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