Oil & Energy
Fuel Import Duty: PETROAN Fears Monopoly In Oil Market, Urges Regulatory Checks
Sequel to the newly introduced 15% import duty on petrol and diesel, the
Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have expressed fears of the upsurge of monopoly should local refineries not properly checked by regulators.
PETROAN called on regulatory agencies including the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) to be on red alert against monopoly, as not regulating the sector properly might harm the market.
The National President, PETROAN, Dr Billy Harry, made the remark while speaking during a Courtesy Visit to the new Pro-Chancellor and Chairman of the Governing Council of Ignatius Ajuru University of Education (IAUE), Port Harcourt, Dr Chinyere Igwe, at the weekend.
According to a Press Statement signed by the National Public Relations Officer (PRO) of PETROAN, Dr Joseph Obele, Harry reiterated that the benefits of this policy will outweigh the potential disadvantages.
He stated that importers of petroleum products, which were a price check mechanism against profiteering, would be out of business if not properly managed urging the importers to look inwards towards patronizing local refineries.’’
Harry praised President Bola Tinubu for approving the 15% import duty on petrol and diesel, with the policy aiming to protect domestic refineries, stabilize the downstream oil market, and promote energy security.
The statement partly reads, ‘’Billy Harry highlighted the benefits of the approval, including increased local refining capacity, improved price stability, and enhanced energy security. He noted that this policy will boost local refining, promote economic growth, create more job opportunities, and create a level playing field for domestic refineries.
‘’The benefits of this policy include increased local refining capacity, reduced dependence on imported fuel, improved price stability, enhanced energy security, boost to local economy, benefits to foreign reserves, benefits to the Naira gaining strength, and attracting investors. The potential disadvantages include potential price increase, loss of jobs on the side of importing firms, and short-term challenges.’’
The PETROAN boss also icalled on the Nigerian National Petroleum Company Limited (NNPC) to ensure the availability of crude oil to local refineries, as this is crucial for the success of the policy.
,‘’The new policy has also prompted NNPC to seek private partners in managing the four nation-owned refineries. According to Bayo Ojulari, NNPC’s Group Chief Executive Officer, the company is looking for technical equity partners to help revive its long-dormant refineries, which have yet to resume operations despite years of heavy investment.
“This move is seen as crucial to Nigeria’s long-term energy security and could potentially transform the country from a fuel importer to a net exporter.
‘’Dr. Billy Harry also calls on NNPC to complete the partnership agreement very soon and start production at Nigeria’s refineries before December to avert any form of fuel scarcity or price hike during the Yuletide season. This timely action will help ensure a stable supply of petroleum products and support the country’s economic growth”, the statement said.
By: Lady Godknows Ogbulu