FG mum over deregulation’s date – Daily Trust
November 9, 2009 by Bunmi Awolusi
Top government officials in charge of the oil industry refused yesterday to say when the full deregulation policy of the downstream oil sector will take place, saying they were still in consultations to try to build a national consensus around the policy.
Minister of State for Petroleum Dr. Odein Ajumugobia, who addressed newspaper editors in Abuja, said while the government is totally committed to the deregulation policy, it must still listen to stakeholders because “some people oppose government policies for very good reasons. Some say, why don’t you address the issue of infrastructure before you deregulate? We are addressing that issue; a lot of work is being done to fix the damaged pipelines and restart the refineries, so that we can again produce refined products locally.”
He said the present fuel subsidy regime, amounting to about N750 billion annually, is mostly cornered by “a few individuals who go round to collect another 30, 40 or 50 naira per litre from the government after selling fuel at N65.” He said the government will not do a phased deregulation this time because that was what was done with gradual increase in fuel prices over the years. He said “while with every price increase you reduce the inefficiency, you have not eliminated it, hence the problem continues.” He also said it is unfair to compare Nigeria to Angola, which now produces 1.9 barrels of oil, more than Nigeria’s 1.6 million barrels. Its government can afford fuel subsidies there because its population is small, he said.
