Major Marketers Association of Nigeria (MOMAN) has stated that the ongoing oil war with the attendant crude price reduction has presented Nigeria with the opportunity to reform and restructure its petroleum downstream industry.
Mr Tunji Oyebanji, the Chairman of
MOMAN on Monday in Lagos said that the drop in crude oil price will also lead to a drop in landing cost of premium motor spirit (PMS), otherwise called petrol.
He, however, appealed to the federal government to review the margins accruable to marketers.
He said that removing fuel subsidy at the period of the drop in prices would eliminate waste, address the issue of the low margin of marketers as well as set the country on the path of determining appropriate pricing for the product in the country.
According to him, “The elimination of oil theft and leakages in the system, the optimization of the supply chain, the introduction of alternative energy and the regular and consistent maintenance of the distribution infrastructure are all necessary aspects of this downstream reform, which the passage of the Petroleum Industry Bill will provide an opportunity for the country to resolve once and for all.
“Refineries, depots, pipelines, trucks and filling stations are all in need of regular maintenance and upgrade. These maintenance and upgrade are funded by industry margin.”