Fuel scarcity: Implement full deregulation of petrol pricing, oil marketers tell FG

Major Oil Marketers Association of Nigeria (MOMAN), has called on the federal government to fully deregulate petrol pricing and the discontinuation of fuel subsidy as a panacea to the perennial fuel scarcity in the country.

Rising from an extraordinary online workshop for energy reporters on Tuesday, MOMAN said this would encourage investments and competition in the downstream petroleum subsector.

In the statement jointly signed by the Chairman of MOMAN, Olumide Adeosun and Executive Secretary, Clement Isong, the oil marketers stated that a “disruption in any part of the supply chain automatically causes ripple effects and results in queues at filling stations.”

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The group continued that “Having subsidised PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations.

“As a country, we must begin the process of price deregulation to reduce this inefficient subsidy. If the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food price inflation and generate more jobs for Nigerians.

“In tandem, we must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices.

“Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability,” MOMAN stated.

“The lack of investments contribute in no small measure to fuel distribution inefficiencies and high costs. Neither the new refineries nor the refurbished refineries will survive with the refining margins at current pump prices,” it added.