FG urged to ensure total deregulation, scrap PPRA, others

By Nwanosike Onu, Awka

The traditional ruler of Oba Ofemili, Awka North local government area of Anambra State, Igwe Ezekwesili Maduagwuna, has called on the Federal government to make deregulation total.

Maduagwuna, who is an official of Independent Petroleum Marketers Association of Nigeria IPMAN, said Monday that it would allow for the total deregulation of the petroleum industry by scrapping the prices of oil

The monarch said the Petroleum Prices and Regulatory Agency, PPRA, and the Petroleum Equalization Fund, PEF, without further delay, should be scrapped

Speaking with reporters, he said that in as much as IPMAN appreciated the federal government for taking the bold step on deregulation, the continued existence of PPRA and PEF would not allow government to achieve the desired result.

He said total deregulation would encourage individuals and organizations to invest in the refining of crude oil in the country.

Read Also: PPPRA: petrol price unconnected with crude price

According to him, “Deregulation exposes the oil industry to competitive market, whereby market forces will determine the cost of petroleum products. Having announced deregulation, it has to be total.

“As marketers, we are no longer expected to contribute to the Petroleum Equalization Fund (EPF) or be subjected to the dictates of the Petroleum Prices Regulatory Agency (PPRA).

“We want total deregulation because the petroleum products users are accusing marketers of exploitation and profiteering, when it is the regulatory agencies in the industry that are determining the pump prize.

“All we want is a situation whereby government should cease to control the prizes and allow the Pipelines and Petroleum Marketing Company, PPMC, to merely act as marketers by sourcing their products like other marketers.

“It might be difficult in the first six months, for instance, but after that period, the market will start taking shape. People will start importing their products and may even be selling below what the government is talking about.

“Since the prize of the finished product is determined by the prize of crude oil and the exchange rate, the PPRA and PPF should be scrapped and that is when Nigerians will really say there is deregulation.

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“In such a situation, marketers can be buying at different prizes from depot based on their location and selling at their own prizes. If that is done, the prize of fuel will ultimately crash without government agencies interfering with the system.

“If this is done, the issue of pipeline vandalism will no longer be there as individuals will strive to build their refineries in their preferred areas

“Total deregulation will flush out such people who are into the business merely for the money they get from PEF, while genuine marketers are suffering,” he said.