By Udeme Akpan, Energy Editor

THE Major Oil Marketers Association of Nigeria, MOMAN, Thursday, cautioned the Federal government against returning Nigeria to another round of fuel subsidy.

The association said that the ongoing short-term intervention should be targeted, affordable, well thought out and time-bound and should not negatively impact the Nigerian economy in the long run.

The Chief Executive Officer/Executive Secretary of Moman, Clement Isong, disclosed this in his presentation at the annual Nigeria Association of Energy Correspondents, NAEC, International Strategic Conference 2023 in Lagos.

He said: “The previous subsidy arrangement had adverse effects on the Nigerian economy. That method of subsidy was untargeted, expensive and unsustainable.

“The government has an opportunity now to intervene on a short-term basis to manage escalating energy costs.

“MOMAN supports these short-term interventions, provided that they are targeted, affordable, well thought out, time-bound and do not negatively impact the Nigerian economy in the long term.”

Isong further stated that the deregulation of the downstream sector of the petroleum industry has attracted investment into the value chain. He however cautioned that the pace of investment would increase substantially if the commodity pricing were right and economical for investors.

He said: “Deregulations are meant to enable people and businesses, therefore there is a need for the right decisions to be made based on the resources available. When the commodity pricing is right this would serve as a confidence booster for the sector.

“If spending goes down, the industry should reduce its costs, people should consider the use of alternative energies available.

The MOMAN ES further revealed that petrol prices will continue to increase based on market dynamics and the cost of crude oil. He added that the increase in prices will force petroleum product consumers to be more efficient in their energy usage and choices of fuel type.

He noted that fuel consumers are now transitioning from diesel-powered generators and diesel-powered modes of transportation to Compressed Natural Gas (CNG).

“The rise in diesel costs should help the average consumer move away from diesel-powered generators and diesel-powered modes of transportation- rather than subsidize. The rising price is a tough situation but an inevitable reality.

“The vision of the downstream is to move away from cheap petrol, expensive diesel, and alternative energies, move to mass transit, and be more