The Group Managing Director, Rainoil Ltd, Gabriel Ogbechie has alerted Nigerians over possible increase in price of petroleum products.
His statement is coming, following the full deregulation of the downstream sector by the federal government.
Speaking on Channels TV’s Business Morning on Tuesday, Ogbechie hailed President Bola Tinubu’s decision on the removal of fuel subsidy.
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He added that the idea will allowed healthy competition in the downstream sector.
Recall that many Nigerians have been lamenting over the latest increase in prices of petrol, from N175 per litre as of May 29 2023, to N1300 per litre.
INFORMATION NIGERIA reports that the new price has affected businesses and inflation rate.
Ogbechie said: “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.
READ MORE: FG, NLC To Meet Today Over Petrol Subsidy Removal
“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.
“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.”
