The Major Oil Marketers of Nigeria (MOMAN) has said, frequent instability in supply and distribution of Premium Motor Spirit (PMS), also called petrol, across the country clearly shows institutional failure occasioned by inability of the system to absorb the subsidy regime.
MOMAN, in a statement, yesterday, observed that having subsidized PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis, adding that any disruption in any part of the supply chain causes ripple effects and results in queues at stations.
“As a country, we must begin the process of price deregulation to reduce this inefficient subsidy. If the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food price inflation and generate more jobs for Nigerians,” the association said.
In addition, it added that, in tandem, the authorities must find a way to liberalise supply and also bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices.
According to MOMAN, imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost recovered prices for Nigerians for sustainability.
The association said, the dialogue with the Nigerian people needs to begin to identify, negotiate and agree these areas and begin implementation to save the downstream industry which has been in degradation freefall due to a lack of investment to maintain, renew and grow assets and facilities such as refineries, pipelines, depots, trucks, and modern filling stations.
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