The Managing Director of Pipeline and Products Marketing Company (PPMC), Umar Ajiya, has given a recipe on how to stop smuggling of fuel among the West Africa sub -region. He spoke at the recent OTL Africa Downstream Energy Week in Lagos, where he suggested the need for significant investment to bridge the supply gap in petroleum products supply deficit in the sub-region.
He said: “In addition to increasing refining capacity, regional pipelines distribution infrastructure and intergovernmental trade agreements for products supply to neighbouring countries will help minimise illegal smuggling. Revamping pipelines infrastructure and ending vandalism and theft are critical for efficient product supply and distribution in Nigeria”.
He said the arbitrage in the current price of Premium Motor Spirits compared to Nigeria’s neighbours has incentivised cross border smuggling of the product, adding that the increase together with the rising crude oil price puncture the country’s income.
Source: Independent