Di Minister of State for Petroleum Resources, Heineken Lokpobiri, don tell fuel marketers say make dem reduce di pump price of petrol, to show say di international crude oil price don fall. Lokpobiri yarn dis matter for Abuja, for meeting wey bring together oil marketers and industry regulators. Di meeting aim na to stop arbitrary price increase and make sure Nigerians enjoy di benefit of falling global oil prices, wey come from ceasefire for US–Iran conflict for Middle East.
Di minister speak for Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) General Counsel and Legal Advisers Forum for Abuja. Di theme of di event na “Beyond Compliance: Driving Regulatory Certainty and Investment Confidence in Nigeria’s Petroleum Sector”. Di forum bring stakeholders together to talk about regulatory certainty and investment for petroleum industry.
We commend Federal Government for di intervention because dis sector na di life-wire of Nigerian economy. While di Middle East crisis hard to solve, we believe say when tings calm down like di case between US and Iran, operators must show commitment and patriotism by quickly adjusting prices downward, with di same speed wey dem dey use when prices go up. Dis one no good only for domestic consumption; e affect investor confidence, wey again affect di national economy.
E dey encouraging say di minister remind marketers say even though market don fully deregulate, government go continue to monitor am to prevent excessive profiteering at di expense of consumers. Under di existing circumstance, prices must be determined by market forces. Di NMDPRA get statutory responsibility under Petroleum Industry Act (PIA) to “ensure not only product availability but also prevent exploitative practices and excessive profiteering”.
Given di role of di industry for economy, more stringent supervision go help keep marketers on dia toes. For economy wey depend so much on oil like Nigeria, any change for price spread across all sectors. Di market women, artisans, schools, hospitals and even drivers often change dia prices for goods and services whenever oil prices increase. Because government no often come down strictly on marketers, even when market prices fall, every sector refuse to bring down prices.
However, di more worrying hurdle for all dis matter na say Nigeria, as one of di largest oil suppliers for world, no get fully functional refineries. Even though di refineries dey for Port Harcourt, Warri and Kaduna, dem no dey produce maximally, wey force even Nigerian National Petroleum Company Limited (NNPCL) to continually import refined petroleum products. Dis na company wey Federal Government own wholly but wey now operate like commercial entity, with di federal ministries of finance and petroleum as shareholders.
NNPCL still be di main importer of fuel for Nigeria. Even though Dangote refinery don start operation, NNPCL still dey collaborate with di refinery. NNPCL still set di tone for industry so, beyond everything, good policies and standard supervisory frameworks fit help for functional operative procedures wey fit curb di present exploitative pricing by marketers. Even di fraudulent adjustment of meters by marketers na issue wey Petroleum Products Pricing Regulatory Agency (PPPRA) for di past use to get task force wey regularly go round checking and sealing non-compliant filling stations.
Reviving dat arm of NNPCL fit help di country too. We need integrity for pricing for an industry wey dey di heart of not just our local economy but also for global terms. On di face of am, certain marketing arguments fit pop up like those wey argue say marketers often try to exhaust supplies from old high prices before reducing prices. Ordinarily, dis one fit sound logical but Nigeria na part of di global economy, there are marketing data and realities wey regulatory authorities fit monitor to enforce compliance. Di argument often no come up when marketers jack up prices or even refuse to sell products based on mere rumours of price increases.
Every economy wey love progress must operate on best market plans and realities but governments must make sure say di tail no dey wag di dog. Mere summits and conferences no fit replace strict policies of government and agency functions.
