Gubernatorial candidate of the Alliance for Democracy (AD) in the 2019 general elections in Oyo state, Engineer Oyedele Hakeem Alao, has declared that subsidy removal and total deregulation of the oil sector is the only solution to instability in the price of Premium Motor Spirit (PMS) across the country.
Our correspondent gathered that price of PMS also known as petroleum was recently increased from N148 to about N162 depending on the company and location. While some stations sell at N159 per litre, others fix their pump price at N160, N161 or N162.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier directed its members in the South-West States to sell Petrol at N162 per litre, this decision which made car owners, commercial drivers and other users of petroleum to be at the mercy of marketers who fix prices that suit them.
But, Alao while reacting, declared that the only solution to the instability in the price of petroleum across the country is to remove subsidy totally and deregulate the oil sector.
Alao while addressing journalists on Tuesday in Ibadan, noted that the oil sector would have been stabilized by now, had it been that the oil sector had been deregulated long ago.
The AD gubernatorial candidate who noted that it is sad that the current increment in the pump price of petroleum is coming at time when COVID-19 has disrupted the economic activities across the globe, lamented that the funds being earmarked yearly and over a long period of time in the history of Nigeria for subsidy have always gone into private pockets.
Alao while speaking further stated that it was the insincerity in the management of the four refineries in Nigeria that made it difficult for Nigerians to enjoy affordable fuel pump price.
He said, “Removal of subsidy and total deregulation is the way Nigeria ought to have gone very long time ago. If it had been done long ago, the oil sector regarding availability and affordable pricing would have become stabilized by now.
“It is sad the current increment in the pump price of fuel is coming at time when Covid-19 has disrupted the economic activities of everybody around the world.
“In line with deregulation system, the petrol price would be varying on monthly basis as it’s been done in other countries where there is full deregulation.
“The funds being earmarked yearly and over a long period of time in the history of Nigeria for subsidy have always gone into private pockets. With the current state of the four refineries, it will require complete rehabilitation and de-bottlenecking.
“All heads (including contracts specialists) of multimillion dollar companies handling contracts in the Gulf countries were invited to a meeting by the government of each country, including my company, to find a solution to the problem created by the fall in the world oil price and Covid-19 pandemic.
“We told the governments to cut down the cost of running the government and all the contracting companies also agreed to give discounts to government on all the ongoing contracts and projects and in the end, one of the Gulf countries was able to achieve 25% reduction in their budget for the year.”
Alao, however, advised Governor Seyi Makinde to take the advantage of the agrarian nature of Oyo State by investing heavily in the agric sector, utilizing crops like cashew, cassava, maize and mango to drive the industrial sector of the state, and lamenting that it was a pity that a lot of people who got to power did not understand the running of government, especially the government financial translations, and all that are involved because they never engaged in due diligence before they got to office.
Concluding, Engr Oyebode Hakeem Alao stated that Nigeria had the best of brains and policies to move the country forward but “implementation is always the problem,” stressing that “both the leaders and the followers have attitudinal problem and until we all change from this corrupt lifestyle, indiscipline and mental attitude, the nation cannot move forward.”
