Nigeria: Government Declares Full Deregulation Solution to Fuel Crisis

Minister of State for Petroleum Resources, Mr. Odein Ajumogobia, who was on facility inspection visit to Integrated Oil and Gas Limited in Lagos said government would continue to battle the fuel crisis by deploying more throughput facilities for enhanced products transfer.

Integrated Oil and Gas Limited  stated that its modern storage depots with inbuilt floating roof would save users of the facility some N70 million by preventing routine venting of products under pressure. The development came as the Nigerian National Petroleum Corporation (NNPC) declared that it has started distribution of 18 million litres of petrol from its Ore depot in Ondo State.

The minister said his personal inspection of filling stations since the yuletide season did not yield the same field reports as those published in the media, pointing out that marketers have devised means of beating regulation. He added that his observation of the situation in the market showed that retail dealers sell at official prices on sighting government inspectors and revert to unofficial prices when regulators were not in sight.

He however disagreed with journalists over stock level in the market, arguing that supply has improved. He blamed the queues at filling stations on supply bottlenecks which, he added, deployment of more private throughput facilities would easily address.  He argued that the high level of rascality in the market has justified the imperative of market deregulation as the most reliable solution to the sharp practices that have overtaken the market.

Mr. Aumogobia dispelled speculations that the suspense over the actual date of deregulating the market was responsible for4 hoarding of products by marketers in the country, saying that disclosure of the date would worsen the situation. He said however that5 government was still seeking the understanding and support of stakeholders on deregulation of the market as the only solution to the perennial fuel supply crisis in the country.

On the facilities of Integrated Oil and Gas Limited, the minister expressed delight at the high standards being set by the company in quality of fuel distribution infrastructure, saying government would use the facility in its throughput arrangements. "I am actually impressed by the size, quality and variety of facilities we have here. There is also a lot of innovation too. I think we are going to use this facility," the minister said.

While conducting the minister round the 88 million litre capacity storage tank farm, loading gantries and jetty, the Executive Chairman of Integrated Oil and Gas Limited, Captain Emmanuel Iheanacho, said the facility was the only private depot with the floating roof facility for containing wastes and incidents associated with evaporation of petroleum products.

PetrolWorld 070110   Source: Champion Media

Editors Note:
I think all those familiar with the workings of the Nigerian Energy market would agree with full deregulation.  You also have to admire independent companies like Integrated Oil & Gas Ltd & Oando for being able to operate and “play the game”.  The real problem here is how the existing corrupt system within NNPC can be genuinely handled.  The exit of key investors and companies could be an catalyst  for action but that is the view of an optimist.