As the astronomical rise in the price of petrol continues to push up cost of services and rise in food items, the Center For The Promotion Pf Private Enterprise, CPPE, has suggested that the Nigerian National Petroleum Company Limited, NNPCL, considers a direct intervention measures.

To help cushion effect of the ongoing hardship occasioned by the petrol subsidy removal, Chief Executive Officer, CEO, of the Center, Dr. Muda Yusuf, said the Company should consider selling petroleum products at a price which is 10 per cent less than that of other private sector marketers.

This in his view is to demonstrate the desired social sensitivity by the Government in this transitional phase of the subsidy removal and that it is also of great symbolic significance to do so.

Yusuf, noted that Government must be seen to be concerned about the social outcomes of this reform and this is without prejudice to the new status of the NNPC as public Limited Liability Company.

He however, said Government should immediately entrench competition in the importation and refining of petroleum products to put an end to the current monopoly structure of supply of petroleum products in the country.

He noted that the NNPCL, is currently a monopoly supplier of petroleum products which is partly responsible for exploitative pricing of petroleum products – diesel, aviation fuel and petrol, pointing that the best strategy to protect consumers in any economy is to create a good and sustainable competition framework.

He also said that since the new policy is affecting operators in the transportation industry, there is urgent need for Government to consider introduction and immediate implementation of key fiscal measures.

He suggested that import duty, Value Added Tax, VAT and other port charges on Semi Knocked Down, SKD, parts for the assembly of mass transit buses should be waived.

This he explained would not only make mass transit buses cheaper; but would also enhance industrial capacity utilization of the vehicle assembly plants in the country.

He suggested that, “Import duty on passenger buses of 15 passenger capacity and above should be reduced by 50 per cent for the next one year.

“Import duty on fairly used cars of engine capacity of 2000cc and below should be reduced by 30 per cent.This would enhance access of the middle class to vehicle ownership in the light of the high deficit in the provision of public transportation.”