Time for full fuel deregulation

The return of queues in most of our filling stations has sent panic in the mind of Nigerians. Unlike in the last one decade where fuel scarcity became an annual ritual, the Buhari administration should be commended for stabilising the sector in recent times through the removal of subsidy. Until now, Nigerians had enjoyed un-interrupted supply of fuel in the last two years with a competitive fixed price across the country. The sudden return of queues in the country has elicited mixed reactions from Nigerians with many expressed fear that the government wants to increase the price of fuel. This speculation has been put to rest by the secretary to the government of the federation, Boss Mustapha, who assured Nigerians the government’s commitment to resolve the problem.
The oil marketers association has complained that it could not continue to import fuel and sell it at the cost N145 per-litre. Government on the other hand has blamed the marketers for deliberately hoarding and increased the price of fuel. There is hue and cry not only from Nigerians, but also the opposition parties who accused government for not doing enough to bring to an end the lingering fuel scarcity in the country. While the blame game lingers, Nigerians are made to suffer from the new price regime imposed on them by the marketers. The partial implementation of deregulation policy by the Federal government could be adduced as the reason behind the current fuel scarcity. The petroleum industry should be fully deregulated for great efficiency. The benefit of deregulation are: it will open up to the private investors who are reluctant to invest due to frequent government interference in the sector; companies with approved licence would go ahead and build new refineries by making the petroleum resources available; petro-chemicals industries will spring up thereby creating jobs opportunities to our able bodied youths.
The solution to the current and future fuel scarcity is for the government to hand up the running of the industry to the private investors. Deregulation will promote competition and lead to prompt provision of adequate fuel for domestic consumption. Partial deregulation of the sector cannot pave the way for more transparent and effective petroleum sector.

Ibrahim Mustapha,
Pambegua, Kaduna state
08169056963

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