Plummeting crude oil prices; an opportunity for Nigeria – MOMAN

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The Oil marketers under the umbrella of Major Marketers Association of Nigeria (MOMAN) has reiterated that the global reduction in crude oil prices has presented Nigeria with the opportunity to reform and restructure its  petroleum downstream industry.

Mr Tunji Oyebanji, MOMAN chairman  disclosed this in an interaction with the media in Lagos on the opportunities for Nigeria to take advantage of the reduction of Crude oil prices at the international market.

Oyebanji  said that the  drop in crude oil price would also open up petrol (PMS) Importation by bringing multiple players to participate in importation, while appealing  to government to review industry margins.

He said that  removing  fuel subsidy at the period of drop in prices would eliminate waste, address the issue of low margin of marketers as well as set the country on the path of determining appropriate pricing  for the product  in the country.

He also  advocated the need for the restructuring of the nation’s downstream oil industry in order to set it on the path to sustainability.

According to him:’’The elimination of oil theft and leakages in the system, the optimization of the supply chain, the introduction of alternative energies and the regular and consistent maintenance of the distribution infrastructure are all necessary aspects of this downstream reform, which the passage of the Petroleum Industry Bill will provide an opportunity for the country to resolve once and for all’’

According to him, MOMAN believes that an immediate increase in margins is necessary to halt the further degeneration of the petroleum distribution infrastructure.

“The restructuring or reform of the downstream oil industry is necessary.

Oyebanji, who is also the Chief Executive Officer, 11Plc  said his group recently attended a working session with the Group Managing Director of the Nigerian National Petroleum Corporation(NNPC), Mallam Mele Kyari on the ills in the nation’s downstream petroleum industry, expressed that MOMAN will not support fuel theft, fuel adulteration or illegal refining of petroleum products by unlicensed entities.

He added that MOMAN would collaborate with its  business partners such as dealers and transporters  to support the federal government and the Nigerian National Petroleum Corporation(NNPC) to eliminate  these  malpractices.

He expressed MOMAN’s support for the federal government’s drive for the full exploitation of the country’s gas reserves including deepening the use of Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) in the country.

He disclosed that his group is prepared to invest in the safe installation of Liquefied Petroleum Gas (LPG) facilities in its stations across the country, adding that the development will eliminate the unsafe practice of dispensing  cooking gas through unlicensed roadside vendors.

‘’With respect to Compressed Natural Gas(CNG), MOMAN encourages immediate engagements with the private sector to identify policy measures that will make deployment of CNG at retail outlets a reality for the country in the shortest possible time.

“MOMAN will collaborate with government and other stakeholders in implementing any such initiative,” he added.

He also announced that MOMAN has partnered  the Nigerian National Petroleum Corporation and NARTO  to float truck fleet renewal plan, stressing  that the partners would engage the Finance industry on funding the scheme for the country.

He added that the program would contribute significantly to the reduction of loss of lives and property, engendered by the distribution of petroleum products in the country.

‘’Ultimately, the degradation and deterioration of the truck fleet as well as the inability of the downstream oil industry to upgrade its equipment and facilities, presents a risk to the distribution infrastructure.

“Refineries, depots, pipelines, trucks and filling stations are all in need of regular maintenance and upgrade. These maintenance and upgrade are funded by industry margin’.

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