Fuel scarcity: Time for full deregulation?

The return of queues in our filling stations has sent panic in the minds of Nigerians. Unlike in the last one decade where fuel scarcity became an annual ritual, the Buhari administration should be commended for stabilising the sector in recent times through the removal of subsidy. Until now, Nigerians had enjoyed uninterrupted supply of fuel in the last two years, with a competitive fixed price across the country.

The sudden return of queues in the country has elicited mixed reactions from Nigerians, with many expressing fear that the government wants to increase the price of fuel. This speculation has been put to rest by the Secretary to the Government of the Federation, Mr Boss Mustapha, who assured Nigerians of government’s commitment to resolve the problem.

The Oil marketers Association has complained that it could not continue to import fuel and sell at the rate of N145 per litre. The government, on the other hand, has blamed the marketers for deliberately hoarding and increasing the price of fuel. There is hue and cry, not only from Nigerians, who accused government of not doing enough to bring to an end, the lin- gering fuel scarcity in the country. While the blame game lingers, Nigerians are made to suffer from the new price regime imposed on them by the marketers.

The partial implementation of deregulation policy by the Federal Government could be adduced as the reason behind the current fuel scarcity. The petroleum industry should be fully deregulated for great efficiency. The benefits of deregulation are: it will open up opportunities for the private investors who are reluctant to invest due to frequent government interference in the sector, companies with approved licences would go ahead and build new refineries to making the petroleum resources available, petro-chemical industries will spring up, thereby creating job opportunities for our youths.

The solution to the current and future fuel scarcity is for the government to hands off the running of the industry to private investors. Deregulation will promote competition and lead to prompt provision of adequate fuel for domestic consumption. Partial deregulation of the sector cannot pave the way for more transparent and effective petroleum sector.