In a move that is expected to bring relief to Nigerians, the price of Premium Motor Spirit (PMS), commonly known as petrol, is likely to decrease following the Federal Government’s announcement regarding the continuation of its crude and refined product sales in Naira initiative.
The Federal Government confirmed on Wednesday that this initiative, which facilitates the sale of crude and refined products in Naira, will now be a standing national policy, continuing indefinitely.
This decision was made during a meeting of the Technical Sub-Committee, which reviewed the initiative’s progress and addressed various implementation matters.
Officials stated that the initiative is not a temporary measure but a crucial policy aimed at fostering sustainable local refining, enhancing energy security, and reducing the reliance on foreign exchange within the domestic petroleum market.
The government has reaffirmed its commitment to the full implementation of this strategic initiative as directed by the Federal Executive Council (FEC).
The Federal Ministry of Finance reassured stakeholders of the government’s commitment to the full implementation of this initiative. They acknowledged that, “As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time. However, such issues are being actively addressed through coordinated efforts among all parties.”
The Technical Sub-Committee meeting, held on Tuesday, included key figures from various sectors. Notable attendees included Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy; Mr. Zacch Adedeji, Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service; and representatives from NNPC Limited, Dangote Petroleum Refinery, and several regulatory bodies, including the Nigerian Upstream Petroleum Regulatory Commission and the Central Bank of Nigeria.
The government’s decision to persist with the Crude and Refined Product Sales in Naira initiative is viewed as a strategic move that aims to have a lasting positive impact on Nigeria’s economy, promoting growth, stability, and self-sufficiency in the energy sector.
Mr. Sunday Dare, a government spokesperson, emphasised President Tinubu’s commitment to implementing ongoing reforms, particularly in the oil sector, stating that the extension of the Naira initiative is designed to keep petrol prices affordable for all Nigerians.
As the nation awaits the impact of these developments, many hope the changes will lead to more stable and economically viable petrol prices in the near future.
Petrol price reductions in terms of 8-10 naira per pump unit price is not helpful. Unless drastic reduction levels acceptable to the public are adopted inflation will not likely to be effectively checked.
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