Minister of State for Petroleum Resources, Timipre Sylva, has reiterated the need to deregulate the downstream sector through market-driven pricing of products.
He expressed that deregulation is needed to boost the country’s economy.
Sylva made this known when he featured at the News Agency of Nigeria forum on Sunday in Abuja.
“I will say that my stand on fuel subsidy and deregulation is well known. I strongly believe that for this country to move forward, for our economy to make the progress it desires, we need to have a market-driven pricing of products,” he added.
“A situation where you produce something at a certain cost and you have to sell it at a lower cost to people because you are taking some of that burden off the people is not the best.
“It is a very desirable thing but it is also not too sustainable because what happens is that you produce it for N10, you sell it for N5; tomorrow, you produce it again at N10, you add N5 from somewhere, produce it again at N10 and sell it for another N5.
“So, the losses increase and compound on a daily basis and those accumulated losses have brought us to where we are.”