A non-governmental organisation under the aegis of Concerned Energy Consumers In Nigeria (CECIN), has called for total deregulation of the petroleum industry in Nigeria to accommodate the right market template for investors and ensure maximisation of investments, availability of products as well as stop arbitrary increase in pump price.
The group which spoke through its coordinator Comrade Innocent Agwa, during a press conference in Makurdi, said absolute deregulation would put an end to the practice of hoarding fuel and arbitrary increase in the price of the product in the regulated economy.
According to him, deregulation of the market, will attract more foreign investors, eliminate shortage of refined petroleum products, and combat refined petroleum smuggling around the country’s boundaries.
The Nigerian National Petroleum Company Limited, had on Wednesday 9th October 2024, announced an increase in the pump price of Premium Motor Spirit (PMS) from N885 per litre to N1,030.
The group who were speaking against the backdrop the recent increase called on Nigerians to join hands together and champion the campaign for full deregulation of the petroleum market to save the nation.
According to them, the policy is very critical and remains the best way to go for now, stressing that it will allow the industry to reach its full potential and guarantee wider participation of individuals and cutdown excesses of some authorities.
“With hoarding as a common practice, a free-floating price model for oil and gas will ensure competition while preventing one party from taking advantage of generous subsidies (that were originally made to benefit consumers) to buy too many quantities, thereby creating severe supply shortages.
“True competition, independent market regulator, consumer protection and investor protection will strive in the atmosphere of a fully and totally deregulated petroleum market sector.
“It will further increase the country’s local refining capacity, provides increased investment in the rehabilitation and maintenance of industry infrastructure, storage facilities, pipelines, trucks etc and also enhances development of open access reception facilities and adoption of industry best practices”, Agwa stated.
Comrade Agwa further enjoined NNPCL not to relent in its effort towards ensuring that deregulation take its pride of place in Nigeria as it will strike a balance between maintaining sustainability growth of the crude oil value chain( Upstream through downstream) and providing value for the Nigeria consumer and the Nigerian economy.
