The full implementation of the Petroleum Industry Act (PIA), transportation of fuel via the railway, and use of Compressed Natural Gas (CNG) as an alternative are some of the steps that must be taken to end fuel scarcity in Nigeria by 2023.
This was disclosed by the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Chinedu Okoronkwo, during an interview with Arise TV on Tuesday.
According to him, Nigerians will heave a sigh of relief if the petroleum sector is fully deregulated by 2023, as more players would likely come on board.
What IPMAN is saying about fuel scarcity
He said, “Nigerians will soon heave a sigh of relief and see an end to fuel scarcity when the PIA is fully implemented, and when petroleum products are transported via the railway. I expect these factors to end fuel scarcity by 2023.
“By the time people with money from other sectors are allowed to participate in the operations in the sector, fuel scarcity will not resurface again across the country.
“To address the fuel scarcity in the long run, we must transport petrol across the nation via the railway and also consider gas as an alternative to PMS in Nigeria. The cost of CNG when compared to Diesel is a far cry because you can spend N200,000 on Gas for the same project you will spend about N1.5 million worth of Diesel on. We need to speed up the conversion of all trucks from Diesel to Gas to cut costs.”
What MOMAN is saying about scarcity
Meanwhile, the Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), Olumide Adeosun, said:
“Oil marketers have consistently complained about their inability to import products due to forex scarcity, rising inflation, including excess and multiple import charges and taxes by the Customs and relevant government agencies.
“The current scarcity of petrol was occasioned by supply inadequacy in the last few weeks as well as distribution challenges created by the unavailability and continuous surge in international prices of diesel. In the interim, MOMAN recommends that the current single supplier strategy be reviewed.
“MOMAN, as an Association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country given the current state of government finances and unpredictable international supply shortages. We, therefore, recommend a gradual price deregulation with targeted palliatives (eg. transport and agricultural subsidies) to the public to ease implementation.”
In case you missed it
On Tuesday, Nairametrics reported that long vehicular queues have started dotting the landscapes of some Nigerian cities due to fuel scarcity.
For about three weeks, Abuja residents have had difficulty commuting due to fuel scarcity as commuters pay twice what they used to pay to get to work. Earlier this week, the queues hit Nigeria’s commercial capital, Lagos and have since gotten worse.