APC national chairman predicts what would happen to fuel price in three months
– The All Progressives Congress (APC) says the pump price of fuel would crash within the next three months
– John Odigie-Oyegun, the national chairman of the ruling party, referred to the situation with SIM cards: they used to be extremely expensive, but now they are virtually free
– The APC national leader asks Nigerians to remain patient, as the economy is still in bad shape
John Odigie-Oyegun predicted on Friday, May 13, that the price of premium motor spirit (PMS) is likely to crash, used drastic reduction in GSM services rates over the years as an example.
“From our point of view as a party, it has become necessary to fully and in order to recover from the economic situation which we have been plunged to totally free the economy and let the normal laws of demand and supply operate.
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“… in the medium term, in three months at best, I foresee that the prices will come crashing down when there is availability. NNPC will continue to be in the field anyway either through the refineries whenever our pipelines are allowed to function or through importation and so will continue to be a player in the fuel supply market.
“Prices are bound to come down. A typical example is what happened when mobile phones were introduced. I remember that I bought a SIM card for over N30,000, but today, it is virtually free. If we free the fuel market, that same thing will happen which was as a result of competition is likely to happen,” Oyegun said.
He added that the 2016 budget did not provide for subsidy. In his view, return of the subsidy could only divert resources from the crying needs of other sectors, including the programme to help the poor Nigerians.
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“So, the appeal which is a very sincere appeal to the Nigerian people; yes there is a lot of hardship, yes increased pump price will also increase that hardship. But the economy is being freed in a way that the ordinary Nigerian will become the major beneficiary and we are talking of a matter of months from removing this one last bottleneck that has held the Nigerian economy down.
“So, it is an appeal and we should watch what happen in the next few months as far as the fuel issue is concerned because I am sure it will come crashing down.
“That is the message the party wants to convey. The economy is in bad shape as a result of which our people are going through hard times,” the APC leader concluded.
The federal government hiked fuel price from N86.5 to N145 per litre on Wednesday, May 11. Many people tagged it as the ‘removal of fuel subsidy’.
However, the presidency cleared the air on May 13, said it the subsidy did not really exist and the move was needed due to the growing pressure on the naira (foreign exchange issue).
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