Oil marketers fault plan to fix freight rate for petrol
Major Oil Marketers Association of Nigeria (MOMAN) says plans to fix the freight rate for Premium Motor Spirit (PMS) can hinder the downstream sector’s full deregulation.
Tunji Oyebanji, Chairman, MOMAN, said the move could also affect competitiveness among players in the industry’s value chain.
Mr. Oyebanji was reacting to the federal government’s plan to increase the PMS freight rate, also known as petrol, from N7.51 per litre to N9.11.
He said market forces should be allowed to determine any such increments.
Ahmed Bobboi, the Executive Secretary of Petroleum Equalisation Fund (PEF), had announced plans to raise the freight rate.
Mr. Bobboi spoke at the 21st Annual General Meeting of the National Association of Road Transport Owners (NARTO) in Abuja.
However, he said the government was waiting for feedback from the organised labour on the agreement reached on the planned increase in PMS prices and electricity to raise the rate.
“When freight (transportation) goes up, it is reflected in the entire value chain and in the price the final product is sold, but market forces should determine this,” Mr. Oyebanji said.
According to him, an increment in any part of the petroleum sector’s value-chain should be determined by economic parameters and consideration of its impact.
He argued that when the transporters knew there is a fixed price for their services, some would refuse to invest in new equipment that could improve efficiency and safe movement of products.
“That is why we have always been advocating full deregulation of the sector. Let market forces determine the rate of services across the value chain.
“Transporters will, therefore, have no choice but to invest in modern equipment with good safety features which will improve safety on our roads.
“We believe that this will increase competition in that layer of the value-chain,” Mr. Oyebanji added.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Economy
Tinubu approves take-off of Consumer Credit Scheme
Nigerians interested in receiving consumer credit can visit www.credicorp.ng to express interest before the May 15 deadline.
World
China warns of potential flooding in Pearl river basin
The ministry has set key flood prevention tasks.
World
Putin not running out of money to fund war in Ukraine: Report
Despite massive Western sanctions, gross domestic product grew by 3.6 per cent in 2023.
World
German intelligence agency warns companies about dealing with China
Germany’s domestic intelligence service has warned companies to exercise caution when dealing with authoritarian foreign governments like China.
NationWide
CSO threatens legal action against NBC over alleged same-sex content on Netflix, TikTok
He called on NBC to take an immediate step to get these platforms to rein in these illegal contents from airing.
World
Russia arrests deputy defence minister Ivanov for collecting large bribes
Moscow’s Basmanny District Court ordered Ivanov to be kept in custody until June 23.