According to Minister of State for Petroleum Resources, Ibe Kachikwu, the new price for PMS will not be above N145 per litre. A couple of other decisions were also made.
Here are three possible positive outcomes of the fuel price increment:
1. Bye-bye pesky fuel queues
Yes, we've all been there. You've been on the queue at the station for hours and when it's your turn to buy, the fuel attendance says "fuel don finish." The best thing to do at that moment is to hold someone's hands and hymn Kumbaya.
However, with the new rules put in place, those pesky fuel queues may totally be a thing of the past. Part of the decision FG made before approving a new fuel price was to open the importation doors to more businessmen. According to Kachikwu, "any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by regulatory agencies."
As a result, the market is expected to be flooded with the product. This will automatically make fuel queues disappear. Heck, maybe we won't be needing fuel attendants at petrol stations again.
2. Cheap Fuel. Maybe, most likely.
Don't curse me yet.
Remember when MTN came to the Nigeria and started selling a SIM card for N50k? What happened after Airtel came? Glo? Etisalat? It's the same everywhere, competition always benefits the customers. MTN and co now hawk SIM cards on the streets and rates are also falling and becoming competitive.
We can expect the same in the fuel market. A strong competition between oil marketers will surely drive down the price of the commodity.
3. Development of Nigeria's refineries
According to Kachikwu, the new decision will encourage investments in refineries and other parts of the downstream sector.
He added that it will also prevent the diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.
Written by Emmanuel O.
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