Oil marketers blame subsidy for downstream infrastructure decay
The poor state of infrastructure in petroleum downstream sector has been blamed on years of under-pricing the pump price of premium motor spirit, petrol, through subsidy payment.
With government-owned refineries, pipelines and depots in a bad state and not functional, Nigeria has had to depend on importation, and trucking by roads to move petrol across the country.
Speaking to Vanguard in a telephone chat, the Executive Secretary of Major Oil Marketers Association of Nigeria, MOMAN, Mr Clement Isong said he was not surprised that the refineries were not working.
He noted that deregulating the sector fully will benefit the country.
He said: “I understand the challenges that price regulation has created over the years, the problem is because we have kept the prices at artificially low for such a long time, we have not achieved what is called price recovery in order to maintain a lot of the infrastructure in the downstream. That is what the challenge…