Concerned Energy Consumers in Nigeria (CECIN) on Thursday called for total deregulation of the downstream oil sector for a flexible market for improved investments and availability of the products.
Mr Innocent Agwa, coordinator of the group, told newsmen in Makurdi that only full deregulation of the sector would put an end to the practice of hoarding fuel in the country.
The News Agency of Nigeria (NAN) reports that the National Petroleum Corporation Limited had on Wednesday announced an increase in the pump price of fuel products from N885 per litre to N1,030.
Agwa said that in view of the recent consistent hike in the price of fuel, deregulation was very critical and remained the best way to go in the country.
The coordinator explained that deregulation would allow the industry to reach its full potential and guarantee wider participation of individuals and cutdown excesses of some authorities in Nigeria.
He said that deregulation is the right thing to do from an economic perspective because a lot of capital will be freed up for developmental purposes.
“True competition, independent market regulators, consumer protection, and investor protection will thrive in the atmosphere of a fully and totally deregulated petroleum market sector.
“Again, total deregulation of the petroleum sector will further protect customers’ rights and put anti-monopoly and price-fixing rules in place.
“It will also bring about robust protection of investors’ rights and a framework for creating stable and effective regulations.
“Total and complete deregulation will further increase the country’s local refining capacity as well as provide increased investment in the rehabilitation and maintenance of industry infrastructure.
“It will also increase storage facilities, pipelines, trucks, etc., and also enhance the development of open access reception facilities and the adoption of industry best practices,” he said.
Agwa therefore urged the NNPC Limited to ensure that deregulation take its place in the country and provide value for the Nigerian consumer and the Nigerian economy.
He said the deregulation would boost potential investors in the country and appealed to relevant authorities to find a solution to the issue of the right price for PMS products in the country.
According to him, total deregulation was more than just the removal of price subsidies.
He added that it was also aimed at improving business operations, increasing the investments in the oil and gas sector value chain, and resulting in growth in the nation’s downstream sector as a whole.
“With the takeoff of the 650,000 BPD Dangote Refinery and coming on stream of the Bua Group Refinery, Waltersmith Refinery, and others, Nigeria will transform 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,” he added.(NAN)
