THE Major Marketers Association of Nigeria, MOMAN, has reiterated its continued partnership with the Nigerian National Petroleum Corporation (NNPC) to ensure seamless supply of petroleum products across the country.
In a statement, the Chairman of MOMAN, Mr. Tunji Oyebanji, who disclosed this in Lagos, urged the Federal Government to consider removing subsidy on petroleum products, especially because of current low price of oil in the global market.
He said that the N450 billion government set aside for subsidy in the 2020 budget would not add value to the nation’s downstream sector and the lives of Nigerians.
He advised government to use such huge amount pegged for subsidy in the budget to develop other sectors in order to impact positively on many Nigerians.
Oyebanji, who is also the Chief Executive Officer, 11 Plc said that removing fuel subsidy at the period of low oil price would eliminate waste, address the nagging issue of low margin of marketers and appropriate pricing of its petroleum products.
On reform, he said: “The elimination of oil theft and leakages in the system, the optimization of the supply chain, the introduction of alternative energies and consistent maintenance of the distribution infrastructure are all necessary aspects of the downstream reform, which the Petroleum Industry Bill, PIB, will provide.”
Oyebanji, who said his group recently attended a working session with the Group Managing Director, NNPC, Mallam Mele Kyari on the ills in the nation’s downstream petroleum sector, disclosed that MOMAN would not condone fuel theft, fuel adulteration or illegal refining of petroleum products by unlicensed entities.
He stated that MOMAN would collaborate with its business partners, such as dealers and transporters, to support the federal government and NNPC to eliminate the malpractices, explaining that MOMAN and partners would to strengthen processes and ensure that illegal or adulterated products do not get into system.
He said: ‘’With respect to Compressed to Compressed Natural Gas(CNG), MOMAN encourages immediate engagements with the private sector to identify policy measures that would make deployment of CNG at retail outlets a reality for the country in the shortest possible time.
‘’Ultimately, the degradation and deterioration of the truck fleet as well as the inability of the downstream oil industry to upgrade its equipment and facilities, presents a risk to the distribution infrastructure. Refineries, depots, pipelines, trucks and filling stations are all in need of regular maintenance and upgrade. These maintenance and upgrade are funded by industry margin’
He added: “A review of the margins was overdue; the current margins were limiting marketers’ ability to invest in new trucks and the upgrade of filling stations. We need the PPPRA to look at our margins now. It is taking too long and our members are declaring losses. It cannot last longer than this. It has been too long. Increased margin today is not a luxury; it is a necessity, otherwise our fuel distribution system will collapse. It is collapsing already.”
“The restructuring or reform of the downstream oil industry is necessary. The elimination of oil theft and leakages in the system, the optimisation of the supply chain. The introduction of alternative energies and the regular and consistent maintenance of the distribution infrastructure are all necessary aspects of this downstream reform, which the passage of the Petroleum Industry Bill will provide an opportunity for the Country to resolve once and for all.”