Petrol marketers in Nigeria have raised concerns about the monopoly in the supply of petroleum products in the country, emphasizing the need for increased competition in line with the provisions of the Petroleum Industry Act (PIA). They also confirmed the return of subsidies following government intervention.
At the annual conference of the Association of Energy Correspondents of Nigeria in Lagos, Tunji Oyebanji, MD/CEO of 11 Plc, and former chairman of the Major Oil Marketers Association of Nigeria (MOMAN), highlighted the inefficiency and unsustainability of the Nigerian National Petroleum Company Limited (NNPC) being the sole importer of fuel.
Since the removal of the petrol subsidy on May 29, 2023, by President Bola Tinubu, the government had expected private marketers to join NNPC in petrol importation. However, the uncertainty surrounding pump prices and global oil price fluctuations hindered marketers from fully participating in importation.
Oyebanji stressed the importance of breaking NNPC’s monopoly and introducing more players into the importation business to promote competition and efficiency in the petroleum sector.
Fuel Scarcity: Marketers Knocks Against NNPCL’s Import Monopoly
He also emphasized the need to enhance logistics and infrastructure in the industry, citing the potential benefits of having more facilities capable of receiving larger vessels.
Regarding the PIA, Oyebanji pointed out that the law established that petroleum prices should be determined by market forces, emphasizing the importance of adhering to this legal framework.
Clement Isong, the executive secretary of MOMAN, acknowledged the presence of subsidies but stressed that they should not return to their previous levels. He suggested that higher fuel prices should encourage consumers to be more efficient and operators to find innovative ways to reduce costs and remain competitive.
Isong also noted the need for infrastructural and operational investments in the sector, emphasizing their impact on working capital, cost of funds, public health awareness, and safety.
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.