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Tag: Deregulation

  • Deregulation will boost investment in refining — NNPC GMD

    Deregulation will boost investment in refining — NNPC GMD

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says the deregulation of the downstream sector of the oil and gas industry in Nigeria will increase investment in the refining business.

    Kyari made this known in a statement signed by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, in Abuja, on Tuesday.

    He said that the deregulation would also facilitate exponential growth in the nation’s refining capacity.

    Kyari said that though the idea of price stabilisation which led to the introduction of fuel subsidy in the 1970s was noble, it had grown into a huge financial burden on the nation’s treasury over the years.

    This, he said, had necessitated its removal in March, which would free up much-needed cash to fund infrastructural development.

    Kyari said the move would also eliminate market distortions and foster competition between operators.

    The NNPC chief said that it would get more private sector players to build refineries in the country and promote efficiency across the entire value chain.

    He said increasing Africa’s refining capacity as well as quality of fuel required respective refineries to implement sustainable, coordinated pan-African solutions.

    These, he said, would help meet the target fuel specifications and thus protect the health and wellbeing of African nations and their citizenry.

    “It is important to note at this point that the future of our continent does not just lie in our ability to unlock value from our vast natural resources or powering an industrial and economic revolution, but also in our ability to implement proven refining solutions that consider the broader public health implications of our business decisions,” he said.

    Kyari said that NNPC was making concerted efforts to carry out holistic rehabilitation of its refineries in Port Harcourt, Warri and Kaduna.

    He said that the corporation was also collaborating with relevant stakeholders to establish modular and condensate refineries.

    The GMD said it was also supporting private sector establishment of refineries.

    “These projects will be in line with the AFRI standards of AFRI-4 specifications of 50 particles per million for diesel and 150 particles per million for gasoline by 2020, and AFRI-5 specification of 50 particles per million of sulphur in gasoline and diesel by 2030 respectively.

    “Considering that revamp of petroleum products storage depots and associated pipelines is key to optimal operations of the refineries, the Corporation has decided to use a Build, Operate and Transfer (BOT) strategy to restore these facilities using private sector financing,” he said.

    According to him, this process has progressed significantly, with the process of partner selection ongoing to ensure sustainability of the refineries post rehabilitation.

    He noted that Nigeria was intensifying the use of natural gas to ensure lower emissions.

    Kyari said that natural gas had been identified as the fuel of choice for the future, as it had the full credentials to support the achievement of the Sustainable Development Goals (SDGs).

    The NNPC helmsman said that the outlook for the downstream sector, both in Nigeria and across the African continent, looked bright.

    He said this was so with attractive market conditions, large market and significant crude distillation capacity additions from various refinery projects, improvement of the distribution network and the use of natural gas.

    The GMD called on the refining professionals across the continent to utilise the abundant opportunities for strategic collaboration across the entire downstream value chain toward delivering value for the continent.

     

  • Nigeria @60: Urhobo group urges Buhari to make Nigerians happy again

    Nigeria @60: Urhobo group urges Buhari to make Nigerians happy again

    The Abuja chapter of the Urhobo World United Union (UWUU), an umbrella body of Urhobo sons and daughters, has urged President Muhammadu Buhari to make Nigerians happy again.

    TheNewsGuru.com (TNG) reports UWUU made the call on Thursday in Abuja, the federal capital territory as the nation marks her 60th independence anniversary.

    According to the group, the recent increase in the pump price of fuel and increase in electricity tariff have made Nigerians unhappy.

    Speaking with TNG, Francis Oberuefe, the Assistant Coordinator of UWUU, Abuja chapter, said despite the chaos, despite the so many issues besetting the country, the nation is marching on strong.

    “Politically, we are moving forward. The government is trying it’s best to make life easy for the citizenry even when all is not well in the country. Despite the chaos, despite the so many issues besetting the nation, we are still moving on.

    “How do we move this country forward in real terms? That is exactly the question we should be asking as a people as we mark our independence. We must know that for us to move the country forward, there is a prize to pay.

    “One thing I will advise President Buhari is that he should be proactive enough to move the nation forward. With the remaining years in his tenure, he should be able to leave legacies he would be remembered for.

    “He should be active. One of the areas I want the President to be really active, is the aspect of security. People are dying almost on a daily basis. Losing just one life is just too many. He should rejig the security architecture of the country to ensure citizens do not live in fear.

    “Another area the President should look at is the area of food security. President Buhari should revamp the agricultural sector to ensure food security. He should do more in the sector. He has promised us that he is moving this country forward so we expect more from him,” he said.

    Speaking in the same vein, Pharm Samuel Adamatie, an active member of UWUU commended President Buhari and said Nigerians need to support the programmes of government for the betterment of everyone.

    While pleading with the President to listen to the plight of the people and make life bearable rather than increase the burdens of the people, the pharmacist supported the deregulation agenda of the FG but stressed the timing is wrong.

    “I am not known to be a pessimistic individual. I would not say there is nothing to celebrate about Nigeria. We are not there yet. We are actually growing. We are still growing, just like every other nations of the world.

    “But the question is how well have we grown. Listening to the President’s speech this morning, inasmuch as I have reservations, in all, it was a nice speech. I listened to it all along.

    “The country needs support. We need to support the government’s programmes for the betterment of everyone. Enough of the complaints. Let us begin to work to influence our immediate environment and the country as whole. We are not totally there but there is light at the end of the tunnel.

    “On the issue of deregulation, I totally support it but it should not be now. It should have been either before now or after this COVID-19 era. Not now. We all experienced the adverse effects of COVID-19. Other countries are providing palliatives to cushion the effects of COVID, we are deregulating. It should not be now. It should not be when we are still battling with COVID-19 and its after effects.

    “On electricity, I totally disagree with the government when the government is yet to do the needful. I think the government is finding it difficult on what to do: whether to put the chicken before the hen or the hen before the chicken. This is not the time to increase anything in the name of boosting revenue generation.

    “I plead with the President to listen to the plight of the people and make life bearable rather than increase the burdens of the people. He should also see to the security of lives and properties. Without security, the country will not move well. That is the major thing,” he said.

    On his part, the Public Relations Officer (PRO) of the group, Noah Oghenebrorhien Akporehe noted that celebrating the 60th independence anniversary of Nigeria is a good thing, stressing that although there are lapses, that does not mean citizens should not celebrate.

    He lamented the rate of unemployment and the hardship in the country, and pleaded with the federal government to bring down the price of fuel and reverse the increased electricity tariff.

    He said: “There are certain things the government needs to put in place. This is why you will see that as we celebrate our independence, there is massive protests going on around the country.

    “The rate of unemployment is high and in the midst of the COVID-19, the government still went ahead to increase the price of fuel and electricity tariff. It is not fair for the masses.

    “Things are cost. People are crying. Things are not going on well with the people. The government should do a rethink on the decisions already taken. With that the people can be happy again.

    “I want to plead with the federal government to bring down the price of fuel and reverse the increased electricity tariff. He should also give attention to the youths of the country. He should see to their welfare and provide jobs and make Nigerians happy again”.

  • Fuel marketers lecture NLC on deregulation, pulls out of planned nationwide strike

    Fuel marketers lecture NLC on deregulation, pulls out of planned nationwide strike

    The National Executive Council of the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Saturday said members would not partake in the proposed strike by the Nigeria Labour Congress (NLC).

    The National Public Relations Officer of IPMAN, Alhaji Yakubu Suleiman, said this in a statement issued in Lagos.

    He said that the national body of the association had directed all IPMAN members to continue with their normal businesses while NLC goes ahead with the strike.

    “We are calling on the NLC to realise that deregulation is inevitable. It remains the surest way to bring back our economy to normalcy.

    “There is no country in the world that can sustain its economy without deregulating it.

    “We urge Nigerians to cooperate with government in ensuring that our economy grows,” Suleiman said.

    The NLC and the Trade Union Congress (TUC) had jointly declared their readiness to embark on a nationwide strike to compel the Federal Government to reverse the recent hikes in electricity tariffs and petrol pump price.

    TUC had written to all its affiliates and state councils urging them to take charge of the process.

    The letter, signed by its Secretary-General, Musa-Lawal Ozigi, stated the TUC and NLC had jointly resolved to commence a national industrial action from Sept. 28.

  • MOMAN, Other Downstream Players Hail FG, Pledge Support for Deregulation

    MOMAN, Other Downstream Players Hail FG, Pledge Support for Deregulation

    Stakeholders in the Downstream Sector of the Nigerian Oil and Gas Industry, including the Major Oil Marketers Association of Nigeria (MOMAN), have lauded the Federal Government for the courage to tackle the challenges in the Downstream Sector frontally.

    A press release by the Corporation’s spokesman, Dr. Kennie Obateru, stated that the stakeholders gave the commendation at a Downstream stakeholders’ meeting which held at the NNPC Towers, Abuja.

    Speaking at the meeting, the President of MOMAN, Mr. Tunji Oyebanji, said the Federal Government has displayed utmost pragmatism by applying economic solution to the age-long challenges in the Downstream rather than the political solutions applied in the past which were not sustainable.

    He commended the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, for extending the engagement to the leaders of oil workers’ unions who have always been opposed to deregulation and called on them to adopt a different approach to the issues this time around.

    “This is the first time we are having NUPENG and PENGASSAN in the meeting. This underlines the style of the GMD, I commend him. We can’t do the same thing over and over again and expect a different result”, the MOMAN president stated.

    On her part, the Vice President of Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Hajia Amina Maina, said the subsidy regime was of no benefit to anyone and commended the GMD for the engagement.

    All the stakeholders present, including the Petroleum Tanker Drivers’ (PTD), NUPENG, and PENGASSAN, pledged their support for the efforts of the Federal Government and NNPC to ensure a viable and sustainable Downstream Petroleum Sector.

    Speaking earlier, the GMD NNPC, Mallam Mele Kyari, disclosed that concrete steps have been taken to address the main concerns of marketers, especially the issue of availability of forex, stressing that the Central Bank of Nigeria (CBN) has already taken the first step of merging all forex windows to have a unified exchange rate.

    “It is really not in our interest to be the sole importer of PMS in the country. We have taken definite steps to exit the situation. This is a definite step taken and the details would be communicated to stakeholders like MOMAN, DAPMAN, IPMAN and others outside this forum,” Mallam Kyari stated.

    On the issue of subsidy on forex for marketers, he explained that the government spent N2.13trillion from 2016 to 2019, describing the situation as unsustainable and unprogressive.

    Mallam Kyari said there were plans by the government to inject about N2.7trillion into the economy to stimulate production, stabilize the exchange rate and cushion the inflationary effect of the pump price increase.

    He also revealed that in response to the concerns raised recently by members of the Nigerian Association of Road Transport Owners (NARTO) over the state of roads, especially those on the Niger State axis, the Federal Government has commenced aggressive road repair works to allay their fears.

    The NNPC helmsman said that measures have been put in place to ensure adequate supply of petroleum products for the end of year festivities and the projected increase in movement of people across the length and breadth of the country.

    He said the Federal Government was keen on driving the deregulation program to create value for the country and ensure that Nigerians enjoy the benefits.

    In his remarks, the Director of the Department of Petroleum Resources (DPR), Mr. Sarki Auwalu, who was represented by the agency’s Assistant Director, Depots, Products and Jetties, Mr. Bashir Sadiq, said government was interested in opening up the Downstream Sector, adding that the DPR was in support of NNPC’s initiatives in the sector.

  • Deregulation: NNPC to Support Deployment of CNG Facilities

    Deregulation: NNPC to Support Deployment of CNG Facilities

    The Nigerian National Petroleum Corporation (NNPC) has pledged to support ongoing initiatives by the Ministry of Petroleum Resources to provide alternate energy source to Nigerians through aggressive activation of Compressed Natural Gas (CNG) refill stations for motorists across the country.

    Speaking on TVC Business Show, Business Nigeria Live, the Group Managing Director of the Corporation, Mallam Mele Kyari, affirmed that the National Oil Company has already keyed into the gas penetration agenda as championed by the Honourable Minister of Petroleum Resources, Chief Timipre Sylva.

    He said as an energy company with focus on cleaner and cheaper sources of fuel, the Corporation would continue to work with other stakeholders in the industry to provide viable alternatives to petrol which would ultimately lead to reduction in demand for the product and eventual reduction in price.

    The NNPC GMD reiterated the commitment of the corporation towards openness and greater transparency in its operations, noting that in the months ahead NNPC would make public its 2019 Audited Financial Statements as a sequel to the 2018 AFS released in June.

    Kyari also shed more light on the status of the nation’s refineries, noting that the plants were deliberately shut down to allow for a robust diagnosis of the issues which have overtime made it impossible for the facilities to operate up to their name plate capacity.

    The GMD said that the shutdown also became inevitable due to difficulties in feeding them with crude oil via the pipelines that have been completely compromised by vandals.

    He said the Corporation was moving rapidly to execute complete rehabilitation of the refineries under an exercise that would guarantee restoration of the facilities to at least 90 percent capacity utilization.

  • FG commences full deregulation as PPPRA hands off fixing prices for petrol

    FG commences full deregulation as PPPRA hands off fixing prices for petrol

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has said it would no longer fix price bank for marketers of petrol in Nigeria and will allow the market forces to determine prices.

    This was disclosed by the Executive Secretary of the Agency, Mr Saidu Abdulkadir, on Tuesday in Abuja during a chat with newsmen.

    Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Mr Abubakar said this decision was taken after the federal government implemented full deregulation of the downstream sector.

    The PPPRA had been fixing prices of the product in the country every month and in September, the new price band forced oil marketers to sell fuel for N160 to N162 per litre, which many Nigerians have kicked against.

    But in Abuja on Tuesday, the agency said the government was no longer in the business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

    “If we give you the price band for this month, it is like price-fixing,” the PPPRA executive said, assuring Nigerians that better days were ahead as things would normalise with time.

    He also explained why many marketers were yet to start importation of products, attributing this to non-availability of foreign exchange.

    He assured Nigerians that the deregulation of the downstream oil sector was in the best interest of the country, noting that it will continue to check for those that want to misuse the policy for profiteering.

    He explained that the recent increase in the pump price of the Premium Motor Spirit (PMS) was a result of the situation on the global market and forex shortage to marketers.

    According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

    “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short-changed in any way in this process.

    “You know how things are globally, with the impact of COVID-19 on the global oil market. Accessing forex remains a challenge for marketers.

    “We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

    Mr Abubakar said that the agency would continue to monitor the code of conduct that guides the operation of marketers in the industry and ensure that it was not violated.

  • Fuel price: PPPRA owns up on contradiction in deregulation policy

    Fuel price: PPPRA owns up on contradiction in deregulation policy

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has assured Nigerians that the deregulation of the downstream oil sector is in the best interest of the country.

    The Executive Secretary of the Agency, Saidu Abdulkadir, gave the assurance on Tuesday in Abuja, while briefing newsmen on the deregulation of the downstream oil and gas sector.

    Abdulkadir said that the recent increase in the pump price of the Premium Motor Spirit, PMS, hinges on the global market and availability of forex to marketers.

    Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Abdulkadir said many marketers were yet to start importation of products due to non-availability of foreign exchange.

    According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (PPMC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

    “The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short changed in any way in this process.

    “You know how things are globally with the impact of COVID-19 to the global oil market. Accessing forex remains a challenge for marketers.

    “We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

    Abdulkadir said that the agency would continue to monitor the code of conduct that guides operation of marketers in the industry and ensure that it was not violated.

    He reiterated that government was no longer in business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

    He hinted that the agency may not be able to provide monthly price band for the product as it contradicts the deregulation policy.

    “If we give you the price band for this month, it is like price fixing’’ he said, and assured Nigerians that better days were ahead as things would normalise with time.

  • FG explains deregulation of oil downstream sector

    FG explains deregulation of oil downstream sector

    The Minister of State for Petroleum Resources Chief Timipre Sylva says the deregulation of the downstream oil sector was to ensure economic growth and development of the country.

    Sylva made this known in a statement in Abuja, on Thursday.

    He said it was unrealistic to continue to subsidise the Premium Motor Spirit (PMS) also known as petrol as it had no economic value.

    He urged Nigerians to ignore recent misguided comments and innuendos on the issue.

    “It has become expedient for the Ministry of Petroleum to explain misconceptions around the issue of Petroleum Products Deregulation.

    “After a thorough examination of the economics of subsidising PMS for domestic consumption, the government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year.

    “More so, when the subsidy was benefiting in large part the rich rather than the poor and ordinary Nigerians.

    “Deregulation means that the Government will no longer continue to be the main supplier of Petroleum Products, but will encourage private sector to takeover the role of supplying Petroleum Products,” he said.

    According to him, market forces will henceforth determine the price at the pump.

    This, he said was in line with global best practices adding that government would continue to play its traditional role of regulation; to ensure that this strategic commodity was not priced arbitrarily by private sector suppliers.

    “A regulatory function not unlike the role played by the Central Bank of Nigeria in the banking sector; ensuring that commercial banks do not charge arbitrary interest rates.

    “Petroleum Products are refined from Crude Oil. Therefore the price of Crude (the feedstock) for the refining process will affect the price of the refined product,” he added.

    Sylva noted that when Crude Oil prices were down, government, through its regulatory functions ensured that the benefits of lower Crude Oil prices were enjoyed by Nigerians by ensuring that PMS price was lowered.

    He noted that government at that time indicated that increase in Crude Oil prices would also reflect at the pump.

    “This is a necessary action taken by a responsible government in the overall interest of Nigerians.

    “Indeed, one of the reasons we have been unable to attract the level of investments we desire into the refining sector has been the burden of fuel subsidy.

    ” We need to free up that investment space so that what happened in the Banking Sector, Aviation Sector and other Sectors can happen in the Midstream and Downstream Oil Sector.

    ” We can no longer avoid the inevitable and expect the impossible to continue. There was no time government promised to reduce Pump Price and keep it permanently low.

    “Let us therefore ignore the antics of unscrupulous middlemen who would want status quo ante to remain at the expense of the generality of Nigerians.,” he added.

    The minister noted that in addition to attracting investments and creating jobs and opportunities,the policy direction would free up trillions of naira to develop infrastructure instead of enriching a few.

    He said that government was very mindful of the likely impact higher PMS prices would have on Nigerians.

    “To alleviate this, we are working very hard to roll out the auto-gas scheme, which will provide Nigerians with alternative sources of fuel and at a lower cost, ” he said.

  • PPPRA explains ambiguity in deregulation of petrol pump price

    PPPRA explains ambiguity in deregulation of petrol pump price

    The Petroleum Products Pricing Regulatory Agency (PPPRA) says it is no longer fixing the pump price of Premium Motor Spirit (PMS) also known as petrol for marketers.

    PPRA Executive Secretary, Mr Saidu Abdulkadir made this known in a statement in Abuja on Sunday.

    Abdulkadir, however, said the agency would constantly, on a monthly basis, develop a guiding price for the commodity, with which it would advise marketers.

    He noted that the deregulation of the downstream sector was dependent on the enforcement of appropriate laws by strong regulatory agencies, hence its continued intervention.

    “For the purpose of emphasis, let me reiterate that different sectors of the polity operate under the guidance of national regulators.

    “The Central Bank of Nigeria (CBN) regulates the banks and the financial sector; Nigerian Communication Commission (NCC) regulates telecommunications; National Insurance Commission (NAICOM) regulates the insurance sector and the same exists for operators in Nigeria’s downstream petroleum sector.

    “To this end, it is not out of place for the Agency to provide a guiding price band with the aim to protect consumers against price gouging.

    “It is important to also state that there is no where in the world that deregulation means total lack of control, supervision or oversight.

    “While the Market-Based Pricing Regime is a policy introduced to free the market of all encumbrances to investment and growth, it should not be misconstrued to mean a total abdication of government’s responsibility to the sector and citizenry,” he said.

    Abdulkadir said that the PPPRA no longer fix prices, but rather provide a guiding price band by monitoring petroleum products prices daily.

    This, he said was being done using the average price of the previous month to determine prices for the following month, for appropriate cost-reflective pricing that ensures reasonable returns to Oil Marketing Companies (OMCs).

    “This methodology is in line with international best practices which range from bi-monthly to monthly price reviews.

    “Nigeria adopted the monthly review model considering the average duration for the importation of petroleum products into Nigeria from the closest spot market; North West Europe (NWE) to West Africa (WAF) is about 30 days.

    “This period encompasses the Import Financing Process to delivery at retail outlets,” he added

    He further said that the new pricing regime would encourage oil marketers to resume supply of PMS, leading to further value creation in the downstream; foster job creation and ensure reasonable returns for investors.

    According to him, it will create healthy competition among marketers, enhance value for consumers and make funding available for other important infrastructure.

    He said that the PPPRA would continue to regulate the downstream petroleum industry, irrespective of the deregulation of the sector.

    Abdulkadir said this would also prevent petroleum products marketers from exploiting consumers and help to enforce the appropriate laws guiding the industry.

    On code of conduct for oil marketers, he said that although crude oil price and petroleum products prices were positively correlated, the prices of petroleum products do not increase or reduce correspondingly with changes in crude oil price.

    He noted that the pump price will be a reflection of the international market prices of petroleum products that were also rising.

    Abdulkadir further stated that in line with its laws, the PPPRA developed Guidelines for Petroleum Products Commercial Framework and was drawing up Code of Conducts for Operators in the new pricing regime.

    He also added that the PPPRA was finalising the review of cost elements and profit margins on the pricing template for marketers, to reflect the current market-driven pricing regime which was last reviewed in 2016.

  • Downstream operators renew quest for total deregulation of oil sector

    Operators in the petroleum downstream have told the Federal Government to take advantage of the unique opportunity provided by the crash in global crude oil prices to fully deregulate the sector.

    They also called for a legislative framework to address compliance, enforcement and pricing in the importation of Premium Motor Spirit (PMS), to ensure that market forces solely determined the cost of the product for Nigerians.

    The operators spoke at the Nigerian Petroleum Downstream Summit webinar, hosted by Oil Trading and Logistics (OTL) Africa Downstream.

    Mr Adetunji Oyebanji, Chairman of the Major Oil Marketers Association of Nigeria, said the crash in crude oil price was a unique opportunity to take fundamental decisions to revolutionise the downstream.

    Oyebanji, who is the Managing Director of 11Plc, said the government must allow private sector input in deliberations leading up to full market deregulation.

    He explained that the government never stopped marketing companies from importing PMS, adding that market forces were responsible for their decision.

    “We need a framework to avoid past mistakes. When government retains control of prices, it brings pressure on itself and this is not sustainable.

    “Take in the following numbers: N10 trillion has been spent on subsidies in 15 years,” he said.

    Also, Hajiya Amina Maina, Chief Operating Officer of MRS Holding Ltd., said the company had invested in West Africa’s largest petroleum jetty facility in anticipation of deregulation.

    Maina said the facility had capacity for 100,00MT LR2 vessels to save cost, improve efficiency and transfer savings to consumers, adding that deregulation would provide the best time for depot operators to put their investments to work.

    Dr Billy Gillis-Harry, President of the Petroleum Products Owners Association of Nigeria, said the group supported total deregulation and that it would be wrong to assume that retail outlets operators were indifferent to the initiative.

    He, however, argued that pressure from deregulation weighed heavily on last-mile operators as they were the operators in direct contact with consumers.

    Mr Emeka Akabogu, Chairman of OTL Africa, explained that the legislative framework was critical because the prices of crude would rise definitely in future, which might result to another subsidy regime.

    “There must be a legislative framework that addresses compliance; that addresses enforcement and also addresses a pricing formula.

    “This is important so that at any point in time, no matter how high the crude price becomes at the global market, the formula will help to adjust the price to protect the market,” he said.