Subsidy: Expert condemns fuel hoarding, profiteering by marketers
By Yusuf Yunus
An oil and gas expert, Prof. Yemi Oke, has condemned the ongoing hoarding of petroleum products by marketers, while urging the Federal Government to enforce sanctions on erring operators.
Oke made the condemnation against in an interview with the Business Intelligence (TBI Africa) against the ongoing scarcity and hike in price of fuel in Lagos on Wednesday.
He said: “It is unpatriotic and will certainly become counter-productive for any marketer to attempt or contemplate hoarding of petroleum products.
“President Bola Tinubu did not remove petroleum subsidy, but the immediate past President Muhammadu Buhari did and set a June date.
“Tinubu simply emphasised that the current supplementary budget makes no provisions for subsidy beyond June.”
The expert said that it was risky for any marketers to attempt to hoard the product because the new regime allows them to bring in products and sell at rates suitable to them.
Oke, who is a Professor of Energy and Electricity Law, University of Lagos, said that the new policy might drive prices lower.
He noted that deregulated petroleum regime simply means that any prudent marketer could
bring-in products, and might sell at cheaper rates, to edge-out unscrupulous, greedy and unpatriotic marketers.
According to him, the margin of subsidised petroleum and open-market rates is not as substantial, and may be sold at slightly cheaper rates compared to the current rate.
“Also lending credence to the likelihood of market forces, throwing-up slightly cheaper or moderately higher petroleum products rates is the recently commissioned Dangote refineries.
“Nigerians should definitely expect an abundance of petroleum products, particularly petrol and will deligently manage their consumption patterns,” he added.
Oke said that market structures would modulate prices and might drive supply “high” (northwards) and prices “low” (southwards).
He said that business prudence demands that the current supplies should not be distorted by unpatriotic marketers, who might want to create needless artificial scarcity.
He said that doing that would surely be counterproductive aside from being criminal and reprehensible.
Similarly, Mr Chinedu Okoronkwo, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), said the subsidy withdrawal as announced by Tinubu is laudable and commendable, especially for his bold vision.
He said that IPMAN was ready to collaborate with the Tinubu-led administration in its effort to promote greater economic equality and prosperity for all Nigerians.
He said that IPMAN had demanded immediate release of products which its members had long paid for, but had not been able to access.
Okoronkwo, confirmed that some of his members had made payment over a month ago, but had not received the product.
He said making another payment would amount to double payment should there be any adjustments in pump price of petrol.
According to him, the association is in support of the policy, and members who trade with borrowed funds should be allowed to access products earlier paid for as well as be given time to sell the products before any adjustments.
