Buhari’ll reduce petrol to N40/L —David-West

FORMER Minister of Petroleum and Energy, Prof.
Tamunoemi David-West, said that Nigerians should
expect sharp drop in petrol price from the current
N87 to about N40 per litre, saying, “the president-
elect, Gen. Mohammed Buhari, will reduce the fuel

pump price to N40 per litre.”
In a telephone interview with Vanguard, the former
minister argued that Nigeria produces millions of
barrels of crude oil daily, and if properly harnessed
will boost the performance of the industry.
His words: “I want to assure you that by the time
he takes over, petrol will be dispensed at N40 per
litre. This is possible and he has the credibility to
make it work.
The major assignment of the president-elect when
he is eventually inaugurated is to restore
confidence to the industry.
He noted that the president-elect is familiar with
the petroleum industry, adding that he is a straight
forward person that has respect for democratic
principles.
“As military head of state, he dealt with the Federal
Executive Council with the tenets of democracy.
Buhari will build new refineries to make petroleum
products available for the masses. No responsible
government will allow the masses to suffer.
“He will strengthen the refineries within a year. It
is possible as we won’t spend any amount in
setting up a green field refinery. We already have a
blueprint as we shall use what we have to get what
we want,” he added. He further stated that on
many occasions, the president – elect had
disclosed that the subsidy initiative is a fraud
which has distorted the progress expected in the
sector.
He is also said to have frowned at the spate of
corruption, which has characterised the subsidy
regime to include the trillions of Naira spent on
both Petrol and Kerosene subsidy within the past
few years, thus inhibiting efforts to properly carry-
out the Turn Around Maintenance TAM, for the
refineries. He added that on countless occasions,
he had argued that the country is forced to pay for
scam carried out by oil cartel.
Also contributing, a UK-based economic analyst,
Mr. Seyi Odetola, noted that the president-elect
has expressed doubts on the credibility of the
subsidy claim. He added that there may be the
need to investigate the several claims made by
marketers, which will further reinforce his earlier
submission on the subsidy claim.
According to him; “The fact that most filling
stations in the country are now dispensing
petroleum products after the presidential election,
despite the threat by major oil marketers to stop
selling the product, in view of the subsidy arrears
owed to them by the Federal Government,
indicated that most of the marketers have been
benefiting from the fraud.
Removal ofsubsidy
He argued that “Where did they get funds to import
the product, given the nature of the forex? If after
the presidential election fuel is still available as if
nothing had happened, it is then apparent that
there is no fuel subsidy. “It would be difficult for
him, to unitarily remove subsidy without the proper
consideration of the plight of the major players in
the sector.
He will need to re-appraise the cause of
inefficiency of the sector.” He further hinted that
the president-elect, with his pedigree and respect
for the rule of law, will completely phase out
importation by the time the local refineries are
working. This, according to him, will totally
remove subsidy, adding that subsidy as it is
presently constitutes the promotion of corruption
and impunity.
“I am optimistic that the president-elect will look
into the subsidy regime as soon as he finally
settles down for the business of governance. He
stressed that renewed attention will be given to the
revamping of the four refineries as well as focus
on
the construction of new ones.”
He concluded that “In the long term, through the
confidence that will be restored in the downstream
and upstream sectors, investors will be
encouraged to do business which will stimulate the
growth from the level it is.
On his part, the Director, Strategic Planning,
Research Intelligent, Mr. Olubunmi Martins, argued
that the subsidy regime is riddled with corruption,
a sign post of the present administration. He said
the challenge before the industry is the gradual
restoration of the local refineries, which will take
care of the local consumption for petroleum
products.