2 weeks Ago By Johnson Babajide
Some stakeholders in oil industry, known as ‘Concerned Energy Consumers In Nigeria’, CECIN has renewed the call for total deregulation of the petroleum industry in the country as the way forward. Speaking at a press conference held in Makurdi on Thursday the group through its coordinator, Innocent Agwa argued that total deregulation of the oil industry will help to accommodate the right market template for investors and ensure maximization of investments as well as availability of products. Nigerians, again on Wednesday were surprised by the new increase in pump price of petroleum product from N885 to N1,030 by Nigerian National Petroleum Corporation Limited NNPCL, third time in the past two months.
Speaking to newsmen on the latest increase, Agwa who insisted that total deregulation of the oil industry is the best way to go called for the cooperation of every Nigerian to champion the campaign for full deregulation of the petroleum market to save the nation. ALSO READ: Deputy Speaker Kalu announces upcoming bills to improve access to eyecare He listed the advantages of total deregulation of the market, to include; to attract more foreign investors, eliminate shortage of refined petroleum products, and put an end to smuggling of petroleum commodities to neighbouring countries. According to him, “With hoarding being 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oil and gas will ensure competition while preventing one party from taking advantage of generous subsidies (that were originally made to benefit consumers) to buy too many quantities, thereby creating severe supply shortages.
“Deregulation is the right thing to do for now from an economic perspective because a lot of capital will be freed up for developmental purposes. “True competition, independent market regulator, consumer protection and investor protection will strive in the atmosphere of fully and totally deregulated petroleum market sector. “Again, total deregulation of the petroleum sector will further protect customers’ right, anti-monopoly and price- fixing rules in place and also bring about robust protection of investors’ rights and framework for creating stable and enforcement of regulations.
“Total and complete deregulation will further increase the country’s local refining capacity, provides increase investment in the rehabilitation and maintenance of industry infrastructure, storage facilities, pipelines, trucks etc and also enhance development of open access reception facilities and adoption of industry best practices. While advising NNPCL to insist on total deregulation of the industry to boost potential investors, Agwa also appealed to NNPC to find a way to discuss with relevant authorities and find a solution to the issue of right pricing for petrol in the country. He stressed that total deregulation was more than removal of price subsidies as it also aimed at improving business operations, increasing the investments in the oil and gas sector value chain and resulting in the growth in the nation’s downstream petroleum sector as a whole.
“With the take off of the 650,000BPD Dangote Refinery and coming on stream of BUA Group Refinery, Waltersmith Refinery and others will transform Nigeria into a net exporter of crude oil in the near future. “So, there is need for all of us to join hands together and champion the campaign for full deregulation of the petroleum market to save our nation”, Agwa said. NIGERIAN TRIBUNE NIGERIAN.
