For almost three months, the pump price of petrol has hovered between N65 per litre (in very few areas) and N150 in some extreme cases.
As a media outfit, we also feel the pains of the nation; especially, since uncertainties, official deceit and corruption crept into the downstream sector, making availability of petrol a tall order. As with virtually all homes and business premises, we also run our operations on an undulating pump price of petrol.
Since January, 2009, when we capitalised on the symbiotic relationship between oil and gas as well as the maritime sector to pioneer the oil and gas page, we have become more educated about the political economy (especially) of the downstream sector of the nation’s oil and gas business. We have also seen the obvious failure of the various interventionist policies of price regulation, which led to the creation of agencies such as: Petroleum Products Pricing and Regulatory Agency (PPPRA) as well as the Petroleum Equalisation Fund (PEF) to address all issues relating to pricing and availability of petroleum products.
We have seen why Lagos has avoidably become the hub of the downstream operations; serving the entire South West and some neighbouring states, some parts of the North and so on, and in the process playing host to more than 50 tank farms.
More petroleum products-laden vessels now dominate activities at the dedicated terminals so much so that an appreciable 60 percentage of ships that come into Lagos pilotage district are laden with petroleum products.
Available statistics however revealed that the twin problems of inconsistency on the part of the government as well as the backlash of the clampdown on bank loans have grossly affected importation of petrol as private sector imports have dropped to as low as five per cent from an all- time- high of about 51 per cent at the beginning of 2009.
Oil marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) have however stopped importation, alleging uncertainty in the downstream sector and failure of government to offset outstanding indebtedness in the name of subsidy. This is what is largely responsible for the scarcity – there is shortage of importation, which has led to rationing from the various NNPC and independent depots. This has also led to black ‘marketeering’ right from the NNPC to the major marketers and importers to the depots and to the retail outlets.
The pertinent question is: if at the moment, petrol sells for between N65 and N90 per litre in Lagos and it goes for as much as N150 in some parts of the country, then have we not deregulated?
Nigerians are beginning to lose fate in the ability of the present government to fix the problems of the oil and gas sector; a problem which culminated in the tacit endorsement of deregulation by the government.
At the beginning of the crisis, President Umar Yar’ Adua and his ministers and advisers had attempted to justify deregulation by submitting that there is need to cripple the oil importation, marketing and distribution cartels by removing subsidy.
But, the prevailing problems in the down stream segment of the oil and gas sector can not be solved simply by embracing deregulation hook, line and sinker.
Before deregulation, Nigerians will appreciate it if the federal government can repair the refineries. Or else, the poor will be at the mercy of the shylock called importers whose obsessive love for profits are usually explained away by some people as just pandering to the natural forces of demand and supply.
It is very uncharitable and a clear demonstration of total disconnect from the people to romance a policy which has the tendency to further impoverish the people.
Government has cleverly deregulated the pump price while we are still raising opposition against total deregulation of the downstream. Where is regulation, if within a stretch of 500 meters, there are three or more different pump prices.
Since deregulation means absence of price control, then, what currently obtains at filling stations across the nation is nothing, but unofficial deregulation.
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