The Nigerian House of Representatives has called on the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery to permit independent marketers to lift petrol.
The body aims to prevent monopolistic control by major marketers.
This action is critical because lawmakers worry that a small number of people controlling a large portion of the fuel supply could prolong shortages and drive up prices.
Letting independent marketers buy fuel directly from the Dangote refinery would improve distribution and stabilize market prices.
“The House further notes that given the high demand by millions of Nigerians for PMS and the ordeal they go through to obtain it, NNPCL should allow independent marketers to lift the product from the Dangote refinery,” Oboku Oforji, a member representing Yenagoa/Opokuma Federal Constituency, Bayelsa State, stated.
The House recently addressed the difficulties the petroleum industry has encountered since fuel subsidies were eliminated in Nigeria during a plenary session.
Challenges Addressed
With global oil prices fluctuating, petrol prices in Nigeria have been increasingly unstable, with ripple effects on the overall economy.
The legislators think that allowing independent marketers to take part in the fuel distribution process will lessen obstacles and facilitate a more uniform supply of fuel throughout the nation.
They also demanded that Dangote Refinery work with these independent marketers to open storage depots around the country. This would guarantee fuel availability across a range of locations, reducing worries about scarcity in isolated areas.
The NNPCL, the main state-owned petroleum company, has been managing a significant portion of Nigeria’s fuel supply.
Still, its limited capacity to fully cater to the growing demand and logistical challenges has led to inefficiencies.
What do you need to know?
Although the largest refinery in Africa, Dangote Refinery, was supposed to close this gap, its early operations have favoured big marketers.
The House stressed how crucial it is to prevent the refinery from becoming the only supplier to a small number of market participants, pointing out that Nigeria’s fuel distribution problems can only be solved by increasing access to its products. Maintaining fuel prices within the reach of ordinary Nigerians requires equitable access to fuel products.
The burden of fuel shortages, according to lawmakers, can be reduced and competition strengthened, which may result in more competitive pricing, by promoting a larger distribution network that includes independent marketers.
The lawmakers acknowledged that Nigeria needs to strengthen its internal distribution networks to adapt to global oil market fluctuations.
If implemented, their suggestions might change how fuel is distributed in Nigeria so that more stakeholders—rather than just a small number of them—benefit.
