LCCI DG urges FG to boost domestic refining capacity to end unstable petrol pricing

Dr. Muda Yusuf, the Director-Genera of the Lagos Chamber of Commerce and Industry (LCCI) has stated that the accelerated domestic refining and processing of petroleum products would end the unstable petroleum pricing in the country.

LCCI DG urges FG to boost domestic refining capacity to end unstable petrol pricing

Muda-Yusuf

He made the declarations in Lagos at the weekend, Yusuf explained that this action was necessary to prevent both the deregulation policy from being derailed and a return to a subsidy regime fraught with corrupt practices.

Dr Yusuf also called for a competitive market framework to enable the deregulation achieve positive impact, adding that quick approval of domestic refinery operations would boost access to petroleum products for economic development

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The LCCI Director General, however, blamed NNPC’s monopolistic supply structure for the inability of Nigerians and the economy to benefit from the positives of deregulation.

He emphasised that the government needs to urgently put appropriate structures in place to ensure a level playing field and for the deregulation regime to achieve its objectives, because private sector players were strapped for foreign exchange to import petroleum products, while the refineries remained comatose.

“A deregulated pricing regime is typically volatile, oscillating with global oil price. However, deregulation without competition would not give desired outcomes”.

“We are still immersed in a monopolistic structure even as we claim to have deregulated the petroleum downstream sector”, Yusuf adding.

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The LCCI Director General noted that to cushion the effects of petrol price increases on domestic prices, there was also an urgent need to scale up investment in mass transit transportation systems.

He, however, said: “The power sector recovery programme should also be accelerated to reduce the dependence of Micro, Small and Medium Enterprises (MSME) on petrol powered electricity generators.

“These two areas of intervention would reduce the adverse impact of petrol price volatility on small businesses and impact on the welfare of the citizens.