Traders rally against NNPC monopoly

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Oil traders have urged the federal government to end the monopoly privilege enjoyed by the Nigerian National Petroluem Corporation, NNPC.

NNPC currently enjoys a monopoly on the import and supply of petroleum products in the country. But oil traders said the market situation was creating more problems for the country.

Traders under the auspices of the Major Oil Marketers Association of Nigeria, MOMAN, in a briefing with reporters on Thursday, said that as part of the permanent measures to alleviate the fuel shortage, other traders are also expected to benefit from a free and fair game in the importation of products.

Oil traders have constantly complained about their inability to import products due to the scarcity of foreign exchange, rising inflation, including excessive and multiple import charges and taxes imposed by customs and relevant government agencies.

According to the president of the association, Olumide Adeosun, the current shortage of gasoline has been caused by the insufficient supply in recent weeks as well as distribution problems created by the unavailability and the continuous surge of international automotive gas oil (diesel) prices.

“In the meantime, MOMAN recommends that the current single-source strategy be reviewed.

“MOMAN, as an association, is concerned that the current supply framework cannot guarantee a steady and consistent supply to the country given the current state of public finances and unpredictable international supply shortages. We therefore recommend gradual price deregulation with targeted palliatives (e.g. transportation and agriculture subsidies) to the public to facilitate implementation,” MOMAN said.

It also recommended that the Federal Ministry of Petroleum Resources, in conjunction with the Ministry of Finance and other relevant MDAs, establish a task force to immediately focus on increasing diesel supply from the through accelerated initiatives to increase local modular refining capacity.

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