Rising Fuel Prices Top Agenda as OTL Marks 20 Years

Fuel and transport costs, energy security and competition will be the main topics of discussion at the 20th anniversary of Oil Trading & Logistics (OTL) Africa Downstream Energy Week in Lagos. The event, themed "Secure Energy, Shared Prosperity," will gather policymakers, regulators, investors and operators to explore how Africa can turn its growing refining capacity into a steady supply and affordable energy.

Amid households and businesses facing financial strain, OTL Africa's Advisory Board Chairman, Mr. Adetunji Oyebanji, called on the federal government to steer clear of reintroducing petrol subsidies. Oyebanji insisted relief measures should focus on areas most suffering, particularly public transportation. He cautioned that artificially lowering pump prices to alleviate hardship could lead to scarcity, divert products to pricier markets, and undermine investor confidence in the downstream sector.

Oyebanji suggested that interventions should target specific pain points rather than disrupt pricing. He recognized that deregulation has raised consumer prices but eliminated the long queues and supply disruptions associated with regulated pricing. However, he warned that forced price controls would penalize investors who invested heavily in refineries and infrastructure, anticipating cost recovery.