Major Oil Marketers Association of Nigeria (MOMAN) has said that paucity of funds to buy products for storage, inadequate trucks and enlarged storage facilities were hindering the smooth supply of petroleum products.
MOMAN chairman, Olumide Adeosun, who spoke during an online training with journalists Tuesday, promised that as soon as the situation is rectified, there will no longer be disruption in the supply chain.
The major marketers also pointed out that subsidy on Premium Motor Spirit (PMS) otherwise known as Petrol has further stifled investment in the downstream sector causing infrastructure deficit. As a result they are appealing to the Federal Government to consider a phased full deregulation of the downstream sector.
Adeosun said the proposed phased full deregulation of the downstream is important to cushion the effects of the impact of the sharp rise in fuel prices on the hardworking citizens of Nigeria.
Adeosun also said that MOMAN would continue to work with other key stakeholders, to ensure that it ramp up supplies to retail sites and return to normalcy as soon as possible.
He added, “We envisage a rise in demand during the yuletide season and we are prepared to work round the clock to keep our stations running.”
Adeosun also said there was a need for the country to begin the process of price deregulation to reduce the inefficient subsidy.
According to him, these lack of investments contribute in no small measure to fuel distribution inefficiencies and high costs.
“Neither the new refineries nor the refurbished refineries will survive with the refining margins at current pump prices.
The chairman said the exploration, production, refining of crude oil and the distribution of refined products are international businesses with ebbs and flows.
According to him, they have specific models, guidelines, rules and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain.
He advised that the government and the industry in Nigeria must demonstrably apply these accepted health, safety, environmental protection and quality norms to be seen to care for its local populations.
In his remarks, Executive Secretary of MOMAN, Clement Isong, apologised to Nigerians over the lingering fuel crisis, adding that his members are desirous of cushioning its debilitating effects on Nigerians.
He said that there is abundant fuel offshore, but lamented that Nigerians could not have access to the same on account of logistic issues.
According to him, there is a need for massive investment in infrastructure to put the country’s downstream sector in good shape.
