A Professor Emeritus of Petroleum Economics, Wumi Iledare, has urged the Federal Government to shift the national conversation on petrol pricing away from the cost of Premium Motor Spirit and instead focus on building a competitive, transparent and efficient downstream petroleum market.
According to the renowned petroleum economist, Nigerians should be more concerned about whether the pricing mechanism is working fairly than whether petrol prices are high, arguing that pump prices are merely the final outcome of several market forces.
Prof. Wumi Iledare
Speaking in a television interview with Television Continental on Monday, Iledare said the debate over fuel pricing had become overly emotional since the removal of subsidy, adding that the more important issue was ensuring that market institutions function efficiently and competitively.
He said, “The issue is no longer whether prices should be regulated. The issue is whether markets are functioning competitively, transparently, and efficiently. The pump price is merely the visible outcome; the pricing mechanism is what policymakers and regulators must continually improve.”
