The spokesman for All Progressives Congress, APC’s Presidential Council Dele Alake has urged the African Democratic Congress, ADC, Presidential candidate and former Vice President Atiku Abubakar to explain to Nigerians the legal and physical basis of his proposed petrol subsidy, noting that the proposal raises important legal, fiscal and practical questions that Atiku must answer.
This is contained in a statement by Dele Aleke where it notes that “at his press conference in Abuja on Friday, Atiku Abubakar reiterated his proposed “production subsidy” for locally refined petrol, which he said would reduce pump prices and further asked President Bola Tinubu to slash the cost of diesel and petrol at the pump.
It adds that section 205(1) of the Petroleum Industry Act 2021 provides that unrestricted free-market conditions shall determine wholesale and retail prices of petroleum products. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, in a statement on Saturday, explained that it neither fixes pump prices nor issues administrative price templates, except where the statutory conditions for intervention are met. The PIA provisions guide its function. At the moment, “No such market failure has been declared,” NMDPRA said.
Atiku should therefore explain whether a refinery receiving his proposed subsidy would be required to sell petrol at a prescribed price.
If the answer is yes, he should identify the legal framework under which the government would impose that price condition and explain how it would operate consistently with the Petroleum Industry Act.
If the answer is no, he should explain how public support to refiners would guarantee lower prices at filling stations. Without an enforceable mechanism, refiners could receive the benefit while consumers continued to pay market prices.
NTA News
