Petrol Marketers in Nigeria Demand End to NNPC’s Supply Monopoly Amid Subsidy Concerns – Petrol marketers in Nigeria have raised concerns over the monopoly in the petrol supply, highlighting that the Nigerian National Petroleum Company Limited (NNPC) should not be the sole importer of petrol into the country. This monopoly, they argue, is not only unsustainable but also inefficient, hampering the growth and competitiveness of the market.
Monopoly Concerns: During the annual conference of the Association of Energy Correspondents of Nigeria held in Lagos, Tunji Oyebanji, the CEO of 11 Plc and former chairman of the Major Oil Marketers Association of Nigeria (MOMAN), expressed his discontent with NNPC’s exclusive control over petrol importation. “The monopoly of a single supplier in the country needs to be dismantled because it’s inefficient and not sustainable,” he stated emphatically.
Oyebanji urged for the elimination of the supply bottleneck and called for the inclusion of other players in the importation business to foster competition and efficiency. He emphasized the importance of reassessing the logistics chain and enhancing facilities that can handle larger vessels, thereby optimizing the importation process.
Subsidy Issues: The concerns arise in the wake of subsidy reintroduction following the government’s intervention. Despite the removal of petrol subsidy announced by President Bola Tinubu, which led to a significant hike in petrol prices, the government’s decision to cap pump prices has inadvertently reintroduced subsidies. This price control has deterred private marketers from participating in petrol importation, despite the devaluation of the naira expected to incentivize their involvement.
Clement Isong, Executive Secretary of MOMAN, acknowledged the existence of subsidies in some areas, insisting that such interventions should be transparent and temporary. He advocated for price adjustments and investments in infrastructure and operations to reduce costs and enhance market competitiveness. According to Isong, these measures are crucial for the economic stability of Nigeria, considering the rising global oil prices.
Petrol marketers are calling for an end to the NNPC’s monopoly in petrol supply and importation, emphasizing the need for a competitive, efficient, and transparent market. With the Petroleum Industry Act (PIA) stipulating that market forces should determine petroleum prices, industry players urge regulators and the government to adhere to these provisions to foster a stable and thriving petroleum sector in Nigeria.
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