EDITORIAL: Petrol costs and the lingering ghost of subsidy
As with the related test of ensuring that deregulation works in a market where domestic refining capacity is uneven, the national oil company’s refineries do not work, crude supply is constrained, and a single private refinery has become strategically important, the honourable finance minister will clearly need another briefing to reassure the markets and the citizenry.
Evidently, the honourable minister’s press briefing is one huge answer in search of innumerable smaller questions, including where the NNPCL will find the refined fuel stocks with which to run the scheme, and why the choice of a 30-day trial window for the roll out of the margin discount arrangement?
The federal government intends under the arrangement described at the minister’s briefing that where petrol costs exceed this ceiling, refiners and importers will bear the ensuing shortfall and later offset this loss when costs ease.
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