Business
Deregulation, Solution To Petrol Scarcity – IPMAN

The Independent Petroleum Marketers Association of Nigeria (lPMAN) has, again, said for normalcy to return to the downstream sector of the oil industry, deregulation remains the answer.
“Total deregulation remains the best solution to ending fuel scarcity. The deregulation of the downstream sector remains the only potent and lasting solution to scarcity.
“But the cost implication of the policy will make the price of petrol too expensive for Nigerians, as deregulation will shift the burden from the government to users of the product”, according to the National Operations Controller of lPMAN, Mike Osatuyi.
Osatuyi, who was responding to questions on the recurring fuel scarcity, said it is glaring that payment of subsidy is no longer sustainable, and that the earlier Nigerians come to the realisation of this the better for everybody.
He was emphatic that the subsidy regime is a major bane that has led to increase in the country’s budget deficit, and which is also serving as an encouragement for smuggling of petrol to other countries as a result of the huge profit margin.
“Subsidy kills efficiency in the procurement and supply chain of petrol business operations and deprives government of huge revenue; subsidy does not allow competition and this may be reason the Nigerian National Petroleum Company (NNPC) Limited has continued to enjoy the monopoly of being the sole importer, manager and distributor of petrol in the country,” Osatuyi said.
However, while advocating for the stoppage of subsidy, he appealed to government to put in place all necessary palliatives to cushion the negative effects of the imminent increase in price of petrol before removing subsidy.
For instance, he cautioned that the Central Bank of Nigeria (CBN) should ensure that foreign exchange is available to prospective oil marketers at government official rate so as to be able to import the commodity once deregulation kicks in.
“Without this, importers of the product will be forced to source forex from the parallel market and will in turn lead to an increase in the pump price of petrol to between N650 to N700 per litre”, he stated.
Business
NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content
Business
Food Security: NDDC Pays Counterpart Fund For LIFE-ND Project
Business
Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP
-
Business3 days ago
Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP
-
News3 days ago
Demonstrate Commitment In Improving Host Communities, Ibas Tells Corps Members
-
Politics2 days ago
Tinubu’s Contribution To Buhari’s Presidency Marginal – Ex-SGF
-
Opinion3 days ago
How Reliable Is AI
-
News2 days ago
RSG Tasks Rural Dwellers On RAAMP …As Sensitization Team Visits Akulga, Degema, Three Others
-
Politics3 days ago
Keyamo Inaugurates Ganduje As FAAN Board Chair
-
Rivers3 days ago
HOS Tasks Rural Dwellers On RAAMP … As Project Sensitization Team Visit Degema, AKULGA
-
Politics2 days ago
Reps Constitution Review Committee Holds Zonal Hearing For Rivers, C’River, Akwa Ibom In Calabar