Business
IPMAN: Deregulation is the answer to fuel scarcity
Ibekimi Oriamaja Reports
For the umpteenth time, the Independent Petroleum Marketers Association of Nigeria (lPMAN) has stated that deregulation is the only way to restore normalcy to the oil industry’s downstream sector.
“Total deregulation remains the best solution to ending fuel scarcity.” The only effective and long-term solution to scarcity is the deregulation of the downstream sector. However, the policy’s cost implications will make petrol too expensive for Nigerians, as deregulation will shift the burden from the government to users of the product, according to Mike Osatuyi, National Operations Controller of lPMAN.
In response to questions about the recurring fuel scarcity, Osatuyi stated that it is clear that subsidy payment is no longer sustainable, and that the sooner Nigerians realize this, the better for everyone.
The outspoken IPMAN official was emphatic that the subsidy regime is a major blight that has led to an increase in the country’s budget deficit and is also encouraging petrol smuggling to other countries due to the huge profit margin.
“Subsidy kills efficiency in the procurement and supply chain of petrol business operations and deprives the government of huge revenue; subsidy does not allow competition and this may be why 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.
Though the IPMAN National Operations Controller advocated for the removal of subsidies, he also urged the government to put in place all necessary palliatives to mitigate the negative effects of the impending increase in petrol prices before removing subsidies.
For example, he warned that the Central Bank of Nigeria (CBN) should ensure that prospective oil marketers have access to foreign exchange at the government’s official rate in order to import the commodity once deregulation is implemented. Without this, he warned, importers of the product would be forced to source forex from the parallel market, raising the pump price of petrol to between N650 and N700 per litre.
-
News14 hours ago
Alleged defamation: Gani Adams replies Sanwo-Olu’s CoS, Ayinde Igboho
-
News20 hours ago
Elon Musk announces X will provide Premium, Premium+ subscription for free
-
News16 hours ago
MOSES AKANDA: Bayesa Govt Assures YeneZue-Epie of Justice
-
Politics15 hours ago
Gov. Diri Tasks New SSG On Performance
-
News5 days ago
287 abducted Kaduna school children regain freedom
-
Politics4 days ago
Gov. Diri Inspects Nembe-Brass Road, Says Development Cannot Be Arrested By High Cost Of Construction Materials
-
News7 days ago
Prof. Okaba Inaugurates Association of Ijaw Academics to Drive Development and Intellectual Investment in Ijaw Nation
-
Breaking News4 days ago
EXCLUSIVE: Detained Binance executive escapes from custody in Nigeria