The full deregulation of the petroleum downstream sector and full implementation of thePetroleum Industry Act, PIA, 2021 clearly remains the most viable long-term solution to the country’s supply and distribution challenges.
The Major Oil Marketers Association of Nigeria, MOMAN, chairman, Olumide Adeosun, stated this in a virtual press briefing with Energy Correspondents on Wednesday.
“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 institutionalization of a viable petroleum downstream sector in Nigeria”, he said.
MOMAN empathizes with its customers as we all continue to grapple with recurrent scarcity of Premium Motor Spirit (petrol) in various parts of the Country.
The current scarcity of petrol is occasioned by two main reasons which he listed to include supply inadequacy in the last few weeks and distribution challenges created by the unavailability and continuous surge in international prices of Automotive Gas Oil (diesel)
“MOMAN members are working with The Authority, NNPC/PPMC, NARTO and other industry stakeholders to make the product (petrol) available at the pumps and eliminate the queues as quickly as possible”, he added.
He revealed that MOMAN, as an Association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country given the current state of Government finances and unpredictable international supply shortages. “We, therefore, recommend a gradual price deregulation with targeted palliatives (eg. transport and agricultural subsidies) to the public to ease implementation”, he maintained.
Also speaking at the Media Chat, the MOMAN Executive Secretary, Clement Isong, said that in the interim, MOMAN recommends that the current single supplier strategy be reviewed.
So also that the Federal Ministry of Petroleum Resources, in collaboration with the Ministry of Finance and other relevant MDAs, should set up a taskforce to immediately focus on increasing diesel supply through accelerated initiatives to increase local modular refining capacity.
This move according to him will tackle the supply and distribution challenges. Phased rehabilitation of existing NNPC refineries to hasten supply of middle Distillates (AGO & ATK).
“MOMAN recognizes and closely associates with the need to ease challenges with respect to high energy and transportation costs occasioned by extraneous circumstances”, stated the Executive Secretary.