In his inaugural speech as President of Nigeria, Bola Tinubu announced the removal of petrol subsidy.
There were no substantial plans to weather the effect it will cause.
Since then, the economic hardship on Nigerians had become excruciating.
In the ensuring public outcry, there are talks suggesting that the subsidy era will be restored.
But there is now a call from Petroleum marketers, refiners, and depot owners in Nigeria on the federal government to allow for full deregulation of the downstream oil sector.
What this suggests is that those making the call seek an end to the era of government price controls due to subsidies.
Specifically, those making the call are the Major Energies Marketers Association of Nigeria.
This group is doing so in collaboration with the Depot and Petroleum Products Marketers Association of Nigeria, Crude Oil Refiners Association of Nigeria, African Refiners and Distributors Association, and Petroleum Products Retail Outlets Owners Association of Nigeria.
Together, they made the call during a webinar held on Wednesday.
The discussion was themed ‘Optimising the Nigerian Oil and Gas Industry.’
It brought together key stakeholders from various sectors of the oil and gas industry.
Their discussion focused on challenges, opportunities, and strategic initiatives required for enhancing the sector’s efficiency and sustainability.
This is eve as they knew that they cannot take away the place of the Nigerian National Petroleum Company (NNPC).
NNPC is the sole determiner of product extraction, exploration, buyer of crude oil, doing so on behalf of the federal government and sells at price they desire to the marketers or even fix the price of the product that should be sold to the public.
But in a communique made available on Wednesday by MEMAN, the participants of the webinar said to discussed the implications of recent price hikes in petroleum products and emphasised the need for full market deregulation.
“A market-driven pricing mechanism was advocated to promote competitiveness and operational efficiency.
“The removal of government controls on pricing was seen as essential to fostering a more dynamic and responsive industry.
“The call for complete deregulation and market liberalisation was reiterated.
“The benefits include improved efficiency, enhanced product availability, and increased private sector participation.”
The discussants emphasised the need to support local refineries to decrease dependency on imported petroleum products.
They sued for freedom for marketers to purchase crude oil from local and international sources and for refineries to enter into processing agreements with retail companies.
The discussions also underscored the importance of transitioning towards cleaner energy sources, including Compressed Natural Gas and Liquefied Petroleum Gas.
The stakeholders also made a proposal for the establishment of a new committee structure in the petroleum sector, inspired by the Bankers’ Committee in Nigeria.
This structure, they said, would include a Midstream and Downstream Industry Coordination Committee to focus on enhancing collaboration within these sectors, chaired by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
They called for an Industry Interface Committee to manage interactions between the upstream and downstream sectors.
They also wanted a Petroleum Industry Consultative Assembly that can gather together stakeholders from across the oil and gas sectors, which should be chaired by the Minister of State for Petroleum Resources (Oil).
“These committees aim to foster collaboration, ensure regulatory compliance, facilitate conflict resolution, and provide strategic oversight, akin to the role played by the bankers’ committee in the banking sector.
“The creation of industry-wide consultative committees was suggested to enhance collaboration, innovation, and conflict resolution, addressing supply chain inefficiencies and infrastructure deficits was deemed crucial for long-term sustainability,” the communique said.
The oil sector investors also advocated for significant investment in infrastructure to enhance distribution and storage of petroleum products.
They called for the adoption of new technologies to optimise supply chains, reduce smuggling, and prevent adulteration.