Removal Of Fuel Subsidy Will Solve Fuel Supply Shortage – Oil Marketers
Nigeria oil marketers under the umbrella of the Major Oil Marketers Association of Nigeria (MOMAN), have resumed calls for removal of fuel subsidy by the federal government.
The association argued that deregulation of petrol prices in the country will solve the problem of petrol supply deficiencies currently being experienced.
Speaking during a media briefing on Wednesday, MOMAN chairman, Olumide Adeosun, noted that based on the current state of government finances and unpredictable international supply shortages, the current supply framework cannot guarantee steady supplies of petroleum products to Nigeria.
The marketers recommend that the federal government adopt a gradual petrol price deregulation with targeted palliatives like transport and agricultural subsidies to Nigerians to ease implementation.
According to the oil marketers, the current fuel scarcity in the country is caused by supply inadequacy and distribution problems orchestrated by the unavailability and continuous rise in international prices of diesel known as automotive gas oil.
However, Adeosun disclosed that MOMAN members were working with the authority, NNPC/PPMC, NARTO, and other industry stakeholders to make petrol available at the pumps and eliminate the queues as quickly as possible.
But recommended that the “current single supplier strategy be reviewed” adding that “MOMAN shall continually do its best to distribute petrol to its customers across the country and keep exploring opportunities to partner with industry stakeholders, the authority, and the government to ensure the sustainability and institutionalisation of a viable petroleum downstream sector in Nigeria.
“The full deregulation of the petroleum downstream sector and full implementation of the Petroleum Industry Act (PIA) 2021 clearly remains the most viable long-term solution to the country’s supply and distribution challenges.
“Meanwhile, Adeosun also said the oil marketers were in talks with Pipelines and Product Marketing Company (PPMC) for the provision of diesel to transporters to allow for efficient distribution of petrol from depots “to hinterlands and our stations.”