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Addressing frequent fuel market disruption

Addressing frequent fuel market disruption
Photo by Arnaldo Motta- Ask Nigeria

NMDPRA admits to patches of negligence in their operational services.

Since its discovery, Nigeria’s downstream petroleum sector has continually encountered bad or menacing situations. The industry, so volatile, is consistently sucked into a whirlpool of despair. Presently, the hard condition experienced by Nigerians, especially motorists in a bid to get petrol commenced late in 2022 and has climaxed this year. This situation has evidently disrupted the sub sector of the transportation system in the country and in fact, threatening the crucial rudiments of the just concluded general elections.

While the country was preparing for perhaps, the most significant election in the country, to elect a representative that would overtly curb the socio-economic dilapidations and restore the citizens’ hope in the country, there was an imminent fear over the surging distribution crises. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is responsible for the regulation of the petroleum industry, was noted to have admitted patches of negligence within their operations. The agency, through a Chief Executive, however disclosed that efforts were being made to collaborate with other stakeholders in mitigating the challenges being experienced in the distribution of petrol.

Petrol still being sold above N200 per liter in many parts of Lagos.

With the current issues that have ravaged the structure of distribution within the production process, marketers have noted that deregulating the downstream industry was the only way to engender competitiveness, address the inconsistencies of the petrol prices and curb the arbitrary hike and smuggling operations in the industry. The marketers were quick to react to the report that petrol was still being sold above N200 per liter in many parts of Lagos and across the country, even after the request of Independent Petroleum Marketers for direct product supply was granted. Though the Independent Petroleum Marketers Association of Nigeria (IPMAN) pushed for uniformity in the pricing structure, some independent marketers were still found to have been selling above the stipulated price. In fact, the queues have been ever-present, as some marketers prefer to sell to smugglers for onward smuggling to Benin Republic.

Elder Chinedu Okoronkwo, the National President of IPMAN, noted that these operators were working against the interest of the general public and country. Reports gathered showed that products from the NNPCL were sold to the independent marketers at N172 and upon associated cost, was expected to be sold at N185 per liter in outlets. This is entirely a different scenario compared to Port Harcourt, where products are sold to marketers at N188 and outlets selling petrol at N200 or N210 per liter. This, Elder Okoronkwo said, must be replicated across the country. The Petroleum Product Retail Outlets Owners Association of Nigeria (PETROAN) however indicated that the group was ensuring an overt compliance to the open market operations. Dr. Billy Gillis-Harry, the group’s President explained that the difference in price was mostly as a result of the differing associated cost and operating environment.

Inadequate investment in data collation technology affecting transparency.

In other hand, oil marketers have attributed inadequate investment in advanced technology for data collation as a significant factor affecting the transparency and accountability in the downstream petroleum industry. The Marketers Association of Nigeria (MOMAN), in a bid to facilitate accountability within the industry, launched a demand for automation of the industry. MOMAN’s executive Secretary, Mr. Clement Isong, speaking at a virtual workshop on the International Data Day, focused on the significance of data and automation in facilitating the downstream businesses.

He explained that the inclusion of automation will not only improve excellence in customer service, but will also curb fraud and wash the country’s reputation. Mr. Isong however beseeched the Midstream and Downstream Petroleum Regulatory Authority to consider investing in advanced implements for gathering data. He stated that this was fundamental for deregulated systems, nothing that this would significantly benefit the customers. He also urged the agency to consider optimization of businesses, in a bid to make good business decisions.

Muda urges for the removal of fuel subsidy and plugging of revenue leakages.

Additionally, Dr. Muda Yusuf, the Chief Executive Officer of the Center for the Promotion of Private Enterprise (CPPE), urged for the swift removal of petrol subsidy and plugging of all identified revenue leakages in the oil industry. He stated that one major consideration needed to stabilize the macroeconomic operation was the performance of a wide-ranging reform, checking the regulatory environment and actively pursuing fiscal consolidation. He also noted that the government must create quality economic conditions to further boost the confidence of investors.


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Editor
2 months ago

Addressing frequent fuel market disruption.NMDPRA admits to patches of negligence in their operational services. Express your point of view.

Abusi
Member
9
2 months ago

There needs to be a general regulation regarding oil price. It should be regulated in a way to avoid and prevent fluctuation of prices.

Member
9
2 months ago

The people in charge of the oil industry should try to work with other groups to solve the problems with distributing gasoline in our country.

Member
10
2 months ago

The petroleum removing has been a serious problem in the country and this has draw the country backward in many aspect and this also affect the citizen because of the opaque nature of the payment.

Member
8
2 months ago

I agree that technology should be added because not only does it make service experience better, but it will also cut down on embezzlement and help things to get better.

Member
9
2 months ago

This market disruption is hindering the growth of our economy because petroleum is our major source of income in the country and if it is being breached like this we will lose a lot.

Member
9
2 months ago

It is necessary for the government to establish favourable financial climate in order to continue boosting the trust of investors and this will allow investors to collaborate with the government and contribute to the prosperity of the nation.

Member
10
2 months ago

Addressing frequent fuel market disruption. All this problem can be surve but due selfish and greed they keep telling us stories instead of doing the right thing

Member
9
2 months ago

We should work hard in regulating the oil market especially the price necessary thing to make our oil market progress should be done

Member
8
2 months ago

The right thing should be done to our oil sector we have been suffering from oil causing fuel subsidy how long are we going to be suffering from this, right step should be taken to solve all this

Member
9
2 months ago

I am just hoping the incoming government will be able to revamp the oil industry because it’s already bad.

Member
8
2 months ago

From the distribution to the supply stream the oil sector is already disorganized and needs proper regulation and monitoring.

Member
8
2 months ago

Nigeria is praised by all for the huge oil reserves but we still suffer from the same oil in the country due to bad management and regulations.

Member
8
2 months ago

The government must create a financially stable environment to continue attracting oil investors and revitalizing the sector.

Member
8
2 months ago

As petroleum exports are a significant part of our country’s revenue, any disturbance to the market has a chilling effect on our economic development.

Member
9
2 months ago

The oil industry is currently unregulated and poorly monitored at every stage of the supply chain. I hope it gets better

Member
9
2 months ago

Inconsistencies in prices to sell petrol is not really cool. Uniformity is crucial. To address inconsistencies issue, transparency and accountabity for operations are key.

Member
9
2 months ago

Enough of all these display of power by the marketers. The federal government should go and revival all our refineries to address the frequent fuel market disruption.

Member
9
2 months ago

The marketers are given this opportunity to function this way because government are not rebuilding the refineries couple with the subsidy that is made available to them. These are some factors give room to such nonsense.

Member
8
2 months ago

The proper action should be made to address our oil sector’s problems, which include gasoline subsidies brought on by oil. How long will we continue to experience these problems?

Member
8
2 months ago

The fact that petroleum is our main source of income in the nation and that if it is broken in this way, we will suffer significant losses, is why this market disruption is impeding the expansion of our economy.