Fuel scarcity: Time for full deregulation

THE return of queues in most of our filling stations caused panic among Nigerians. Until now, Nigerians enjoyed uninterrupted supply of fuel with a fixed price across the country. The sudden return of queues elicited mixed reactions from Nigerians, with many expressing the fear that the government wanted to increase the price of fuel. This speculation has been put to rest by the Secretary to  the Government Of The Federation, Mr. Boss Mustapha, who assured Nigerians of the government’s commitment to solving the problem.

The Oil marketers Association has complained that it cannot continue to import fuel and sell it at the rate of N145 per litre. The government, on the other hand, has blamed the marketers for deliberately hoarding and increasing the price of fuel.

There are hues and cries not only from Nigerians but also from the opposition parties which accused the government of not doing enough to bring an end to the lingering fuel scarcity. While the blame game lingers, Nigerians are made to suffer from the new price regime imposed on them by the marketers.

The partial implementation of the deregulation policy by the Federal Government could be adduced as the reason behind the current fuel scarcity. The petroleum industry should be fully deregulated for greater efficiency. This will open up the sector to private investors who are reluctant to invest due to frequent government interference in the sector. Companies with approved licences would go ahead and build new refineries  and make petroleum available, while petro-chemical industries will spring up, thereby creating job opportunities for our youths.

The solution to fuel scarcity is for the government to leave the running of the industry in the hands of the private investors. Deregulation will promote competition and lead to prompt provision of adequate fuel for domestic consumption.

Ibrahim Mustapha: 08169056963