Government digs in on deregulation policy

Amid the uncertainty trailing the planned deregulation of the downstream sector of the nation’s petroleum industry, the Federal Government appears to be digging in with the controversial policy.

Though November 1 was generally believed to be the take-off date for the policy, the recent denial by top government officials that any such date was fixed, has fuelled the confusion that has triggered panic nationwide.

Fuel queues

Long queues at filling stations, which characterised the fuel supply crisis in the past, resurfaced penultimate Friday, as anxious motorists in Abuja and its environ kept vigil for petrol.

Both the Nigerian National Petroleum Corporation (NNPC) and its subsidiary in charge of petroleum products marketing and distribution, the Pipelines and Products Marketing Company (PPMC), have made statements to reassure consumers of adequate stock of the commodity, enough to sustain demand till next year. But the queues continue to lengthen by the day.

NEXT investigations on Thursday at most of the major filling stations in the Federal Capital City revealed that the panic by motorists is as a result of the uncertainty of the government’s stance, particularly as it concerns the timeframe for the implementation.

A taxi driver, who identified himself simply as Kenneth, said on two occasions during the week he had to wake up by 5am to be able to take a vantage position on the queue outside the NNPC mega station located at Zone 1 in the Central District.

“Nobody would want to stay out in a filling station at that time of the day. But, at the same time nobody would want to be taken unawares, because Nigerians do not trust what government has been saying on the issue,” he said recalling the experience in the past where Nigerians would ignore report of plans to adjust fuel price only to find out one day that the pump price at the petrol stations has been adjusted.

Labour lead mounting opposition

The rally by the Nigerian Labour Congress (NLC) in Abuja penultimate Thursday was said to have heightened the confusion, as the workers reiterated their opposition to the policy on the grounds that the conditions that would facilitate its effective implementation, are yet to be in place.

A top official of the union at the weekend confided in NEXT that government officials have been making contacts, however informally, to see how to persuade them to back down on their uncompromising stance on the policy.

It was gathered that the Presidential Committee on Deregulation of the Downstream Sector of the Petroleum Industry, led by the Minister of Finance, Mansur Muhtar, is scheduled to meet with the NLC between Monday and Tuesday as part of consultations with major stakeholders in the industry to enlighten them on the benefits of the policy as well as mobilise for their support.

“The NLC is not afraid of attending a meeting with government. We will be represented fully so that we use the opportunity to say what Labour has been saying since 2004. Labour’s position on deregulation has been well documented in the report of Ibrahim Mantu-led Palliatives Committee for the cushioning of the impact of fuel price increases submitted to the defunct National Constitutional Conference. All what government is doing is propaganda to confuse the people. The same set of people that have been behind the policy all these years are still in charge. They seem not to have fresh ideas on how to go about the issue,” the official said.

Despite the opposition, President Umaru Musa Yar’Adua last Thursday said the policy is inevitable, as continuous subsidy of petroleum products not only distorts the economic system, but also encourages corruption as well as creates more problems than it solves.