Petrol price hike: total deregulation best option for Nigerians – Group

From Attah Ede, Makurdi

Amidst the current fuel pump hike, stakeholders under the auspices of Concerned Energy Consumers In Nigeria(CECIN), have further reaffirmed the call for total deregulation of the petroleum industry in Nigeria to accommodate the right market template for investors and ensure maximization of investments as well as availability of products.

The Nigerian National Petroleum Corporation Limited, had on Wednesday 9th October 2024, announced an increase in the pump price of fuel products from N885 per litre to N1,030.

The group who were speaking against the backdrop of this development, called on all Nigerians to join hands together and champion the campaign for full deregulation of the petroleum market to save the nation.

The group further stresses the importance of deregulation of the market, stating that it will attract more foreign investors, eliminate the shortage of refined petroleum products, and combat refined petroleum commodities’ smuggling around the country’s boundaries.

Coordinator of the group, Comrade Innocent Agwa, while speaking at a press conference held in Makurdi, the Benue State capital, Thursday, said absolute deregulation would put an end to the practice of hoarding fuel in the regulated economy.

According to him, 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 cut down essences of some authorities.

“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oil and gas will ensure competition while preventing one party from taking advantage of generous subsidies (that were originally made to benefit consumers) to buy too many quantities, thereby creating severe supply shortages.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 a 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, provide increased 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”,Agwa stated.

Comrade Agwa enjoined NNPC limited not to relent in its effort towards ensuring 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.

While noting that the deregulation of the petroleum market remains the most glaring boost to potential investors, Comrade Agwa appeals to NNPCL 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 noted that total deregulation is more than just the removal of price subsidies, as it is 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 off the 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 a need for all of us to join hands together and champion the campaign for full deregulation of the petroleum market to save our nation”, the group stated.