Petrol Marketers Demand an End to Monopoly and Subsidy in Fuel Supply

Petrol marketers have voiced their discontent with the government’s monopoly on fuel imports and the resurgence of subsidies, calling for a swift change in policy.

At the annual conference of the Association of Energy Correspondents of Nigeria in Lagos, industry leaders passionately argued for a shift in the status quo.

Tunji Oyebanji, the MD/CEO of 11 Plc and former chairman of the Major Oil Marketers Association of Nigeria (MOMAN), asserted that the Nigerian National Petroleum Company Limited (NNPC) should no longer be the sole importer of petrol.

He stated, “The monopoly of a single supplier in the country needs to be dismantled because it’s inefficient and not sustainable.”

President Bola Tinubu’s announcement of subsidy removal in May, accompanied by a devaluation of the naira, was expected to encourage private marketers to join the NNPC in petrol importation. However, uncertainty surrounding future pump prices has dampened their efforts.

Oyebanji stressed the importance of competition and logistics optimization in the sector, urging regulators to align with the Petroleum Industry Act (PIA), which advocates for market-driven pricing.

He noted that the PIA has clearly stipulated that petroleum prices must be determined by market forces.

Clement Isong, executive secretary of MOMAN, acknowledged that some areas still receive subsidies but emphasized that these interventions must be clear and time-bound.

Isong argued that higher prices should drive consumer efficiency and encourage operators to seek cost-effective measures.

As Nigeria navigates the complex terrain of fuel pricing, the calls for change within the industry are growing louder.

Petrol marketers are eager to see a more competitive and sustainable landscape emerge in the wake of these challenges.