WED, APRIL 10 2019-theG&BJournal-The Lagos Chambers of Commerce and Iindustry (LCCI) said it is worried that the NNPC has practically assumed a monopoly status in the petroleum products production and importation in the economy.
‘’It has become practically impossible for private sector petroleum products marketers to import and sell products because of the price distortions which the involvement of the NNPC has created in the industry.’’ The Chambers said yesterday in a communiqué it issued after its bi-monthly meeting in Lagos.
It said the extant policy on pricing of Premium Motor Spirit (PMS) has made it impossible for the private sector marketers in the sector to import or produce PMS.
‘’It is even more disturbing that even for the products that have been deregulated such as AGO, it is impossible for private sector players to compete with NNPC because of the huge cost differential resulting from preferential exchange rate and use of crude swap for finished products importation.’’
The Chamber noted that the situation is that of a complete crowding out of the private sector in the downstream segment of the oil and gas sector.
‘’The absence of a level playing field is not good for the growth of the industry and in conflict with the competition law recently enacted. It also denies the economy of the much-needed private capital for investment in the sector.’’
In the communiqué signed by the director general, Muda Yusuf, the Chamber also drew a wish-list for President Muhammadu Buhari which includes reform of oil and gas sector and passage of the PIB, fixing of the power sector, prioritizing infrastructure investments and addressing the security issues in parts of the country, reduced cost of governance and the resolution of the Apapa traffic gridlock which is taking a huge toll on the economy of Lagos state and that of the country.
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