Gabriel Ogbechie, the Group Managing Director of Rainoil Ltd, has advised Nigerians to brace for full market prices for petroleum products following the federal government’s complete deregulation of the downstream sector.
Ogbechie made these remarks during an appearance on Channels Television’s live program, *Business Morning*, on Tuesday.
He praised President Bola Tinubu’s decision to remove the fuel subsidy, noting that it fosters healthy competition within the downstream sector.
His comments come as Nigerians face a significant price surge in Premium Motor Spirit (PMS), which has risen from N175 per liter on May 29, 2023, to N1300 per liter.
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“President Tinubu did the right thing by saying the subsidy was gone. He removed the subsidy and then we saw the price of petrol slide upwards.
“At some point, I think the government had to intervene to calm things down and then NNPCL went back to fixing the prices of petroleum products.
“But in October, we saw the government now saying such would not be allowed anymore, directing marketers to source their products and fix prices.
“I also don’t believe that the exchange rate has been floated. Every day you go to the market, it is now a willing buyer, willing seller situation.”
When asked if prices of petrol at the pump would continue to rise, he said; “The key thing is that deregulation is here to stay. Petrol is anything between N1000 and N1060 per litre towards the coast, and maybe N1300 as you go further north.
“As long as the price of crude oil keeps changing, as long as the exchange rate keeps changing, prices of petrol too will keep changing.
“If we see a massive drop in the price of crude oil, the price of petrol will also drop. If we see a drop or devaluation in the price of the exchange rate, there will also be a drop in the price of petrol. “Nobody can exactly tell you what will happen in the next six months. But Nigerians should just be ready to pay the market-determined prices for petroleum products,” he said.
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