Amid fuel scarcity, marketers advocate full deregulation

The Major Energy Marketers Association of Nigeria (MEMAN) has called for full deregulation and liberalisation of the oil and gas industry. This is coming amid the lingering fuel scarcity and the price adjustment which has shot up petrol to about N900 per litre from the initial N568 or N617 in Lagos. Daily Trust reports that […]

The Major Energy Marketers Association of Nigeria (MEMAN) has called for full deregulation and liberalisation of the oil and gas industry.

This is coming amid the lingering fuel scarcity and the price adjustment which has shot up petrol to about N900 per litre from the initial N568 or N617 in Lagos.

Daily Trust reports that the full deregulation may see the price of petrol jumping to almost N1,500 as its landing cost is about N1,200.

The marketers also advocated support for local refineries to decrease dependence on imported petroleum products, while at the same time calling for freedom for marketers to purchase crude oil from local and international sources and for refineries to enter into processing agreements with retail companies.

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These were some of the recommendations at the end of their virtual conference with the theme: “Optimising the Nigerian Oil and Gas Industry”.

They also proposed the creation of Petroleum Industry Consultative Committees (PICC) to address lingering issues in the industry in the aftermath of the disputes between Dangote, other local refiners and NNPC Limited and other regulators.

They said the committees would foster internal dialogue and stop exchange of press releases.

The three committees proposed are Midstream and Downstream Industry Coordination Committee focused on enhancing collaboration within these sectors, chaired by the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The second is the Industry Interface Committee to manage interactions between the upstream and downstream sectors, co-chaired by the ACE and the CCE.

Thirdly the Petroleum Industry Consultative Assembly, a comprehensive assembly bringing together stakeholders from across the oil and gas sectors, chaired by the Minister of State for Petroleum (Oil).

MEMAN’s Chairman, Huub Stokman, who is the Managing Director of NNPC Retail Limited, said the committees’ primary objective would be to support the beneficiation of Nigeria’s crude oil and guide the systematic evolution of PMS pricing.

He said, “The Petroleum Industry Consultative Committees are also expected to promote automation, technology, innovation, efficiency, best practices and self-regulation within the industry.”

Stokman, therefore, noted that the committees, once established, would play a critical role in ensuring the smooth functioning of Nigeria’s petroleum industry by fostering collaboration among key stakeholders and facilitating strategic decision-making.

Adetunji Oyebanji, a former MEMAN chairman and Managing Director of 11Plc, stressed the need for stakeholders to resolve industry disputes internally rather than through public press statement battles.

He said, “MEMAN is working closely with other stakeholders to consolidate discussions and ensure we collectively move the industry forward.”