Accounting body commends FG over deregulation of petroleum downstream sector

The Institute of Chartered Accountants of Nigeria (ICAN), Ikeja District Society, on Friday commended the Federal Government over the deregulation of the downstream sector of the petroleum industry.

The Chairman of the society, Mr Gbenga Adewole, told the News Agency of Nigeria (NAN) in Lagos that deregulation would ensure product availability across the country.

Adewole said that this would also enable investors in the downstream sector to come in and do business, adding that this would encourage job creation.

He, however, said that government should have allowed the forces of demand and supply to determine the price instead of fixing the price for the product.

"I support deregulation of the petroleum sector but what government did is partial deregulation and not total because you don't deregulate and still dictate the price.

"After deregulation, it is the forces of demand and supply that will determine the market prices.

"By fixing the price, you are telling marketers to sell petrol for N145 per litre.

The chairman urged the government to do all within its power to ensure stability of foreign exchange, adding that only stabilised foreign exchange would encourage marketers.

He appealed to Nigerians to support the government in its effort to ensure total deregulation of the downstream sector.

NAN reports that the Federal Government on Wednesday announced a new price regime for petrol with the highest price of N145 per litre.

The Petroleum Products Pricing Regulatory Agency (PPPRA) said in Abuja that the new price regime had taken effect from Wednesday.

NAN reports also that on Thursday, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said the new pump price of N145 for petrol would help to sustain supply and reduce hardship in getting the product.

The minister told newsmen in Abuja that NNPC did not have the resources to supply the product to meet the demands of the nation.