By Adewale Sanyaolu
Major Oil Marketers Association of Nigeria (MOMAN) has opened up on the lingering fuel scarcity, saying Nigerian institutions have diminished capacity to deal with energy crisis.
This was even as it warned that new and refurbished refineries may not survive with refining margins at current pump prices.
The warning is coming at a time that the National Nigeria Petroleum Company (NNPC) Limited has commenced rehabilitation works on the 210,00 barrels per day Port Harcourt refinery at a cost of $1.5 billion through a facility it secured from the African Import-Export Bank in equity funding in November 2021.
Executive Secretary of MOMAN, Mr. Clement Isong, disclosed this at a media workshop with the theme “Deregulation: Understanding the Downstream Supply Chain,’’ facilitated by MOMAN in Lagos, yesterday.
He maintained that the exploration, production, refining of crude oil and distribution of refined products is an international business with ebbs and flows and specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain.
Having subsidised Premium Motor Spirit (PMS) popularly called petrol for so long, Isong said Nigerian institutions now have a diminished capacity to deal with the current local energy crisis, lamenting that a disruption in any part of the supply chain causes ripple effects and results in queues at fuel 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.
In tandem, we must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. 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.’’
He noted that 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.
These lack of investments according to him contribute in no small measure to fuel distribution inefficiencies and high costs.
The MOMAN boss advised that the Government and the industry in Nigeria must demonstrably apply these accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations.
To cut corners, he said, would be irresponsible, unaccountable, and unsustainable.
‘‘MOMAN continues to work with other key stakeholders to ensure that we ramp up supplies to our retail sites and return to normalcy as soon as possible. We envisage a rise in demand during the yuletide season and are prepared to work round the clock to keep our stations running.
As always, MOMAN a full deregulation of the petroleum downstream sector in phases to cushion the effects of the impact of a sharp rise in PMS prices on the long-suffering, hardworking citizens of Nigeria.’’