IPMAN calls for total deregulation of petroleum sector

The Independent Petroleum Marketers Association of Nigeria has urged the Federal Government to commence total deregulation of the oil and gas sector to avert frequent fuel scarcity.
Mike Osatuyi, the National Operation Controller of IPMAN, gave the advice on Friday in Lagos in an interactive section with Newsmen.
Osatuyi noted the full deregulation of the downstream sector was the best option for the Nation’s oil industry to avert the incessant and current fuel scarcity.
Osatuyi said if petrol was deregulated like diesel, this would address many challenges confronting the sector and complaints of non-payment of petroleum subsidies.
“When former president Olusegun Obasanjo deregulated diesel about over 14 years ago, there has never been issues of scarcity since then.”
The IPMAN boss also advised the Federal Government to grant private individuals license to build private refineries since the current refineries are not producing up to capacity the demand of the masses.
“It has been a re-occurring issue for about 15 to 30 years and let the government deregulate, the refinery that will die will die and the ones that will survive will survive. If the refineries are not working, let government sell it as scraps or partner with private organisations, like what Aliko Dangote is doing now, building a 600,000 barrels per day oil refinery which will commence full operations in 2018, which is above the combine total production capacity of our 4 refineries we have.”
“When Dangote refinery starts full operations, it will service the entire nation and the importation of fuel will be no more. I don’t believe our refineries can service the entire nations.”
Osatuyi also commended the Minister of State for Petroleum Mr. Ibe Kachikwu for the prompt intervention effort of the Nigerian National Petroleum Corporation (NNPC) to commence direct delivery of petrol to Independent Petroleum Marketers Association of Nigeria (IPMAN) retail outlets across the country. A move he said will ease the current fuel scarcity across the nation.
Osatuyi said the management of NNPC under the current direct delivery arrangement has approved a credit scheme, where IPMAN members are given credit lifeline to make payments for products supplied to their retail station three weeks after delivery.
“I can confirm to you that massive loading is going on at all depots. As at today (Friday), Capital oil has been able to load about 300 trucks, same for NIPCO, Capital Oil and Folawiyo. With this level of product truck out, the issue of scarcity will soon be over,’’ he added.