Abuja, Nigeria – February 24, 2024 – The House of Representatives Committee on Petroleum Resources (Downstream) has declared war on “racketeering and sharp practices” within the Premium Motor Spirit (PMS) industry, pledging to bring perpetrators to justice and ensure affordable fuel for Nigerians. This decisive action comes amidst concerns over product shortages, high prices, and potential foul play within the downstream sector.
Cracking Down on Racketeering:
- The committee, led by Hon. Ikeagwuonu Ugochinyere (PDP-Imo), vowed to investigate and expose individuals and groups engaged in “product racketeering,” a term encompassing fraudulent activities like product diversion, hoarding, and artificial price hikes.
- Collaboration with industry stakeholders like the Nigerian Association of Road Transport Owners (NARTO) and Petroleum Products Retail Outlets Owners Association of Nigerian (PETROAN) will be crucial in identifying and tackling these practices.
- The committee emphasized transparency and accountability, calling for a closer look at instances where retail outlet owners pay for fuel but don’t receive it, and the emergence of middlemen driving up prices.
Promoting Local Refining and Infrastructure:
- Recognising the limitations of current fuel availability, the committee urged the federal government to encourage and support local petroleum product refiners. This move aims to increase domestic production and reduce reliance on imported fuel, ultimately lowering costs.
- Reactivating the nation’s 23 oil deports and pipelines is also part of the plan, aiming to improve transportation efficiency and reduce pressure on roads.
Seeking Comprehensive Solutions:
- The committee acknowledged the need for a multi-pronged approach, proposing an all-inclusive meeting with stakeholders including regulators, security agencies, and legislators. This gathering aims to address issues like multiple charges, sharp practices, and rising transportation costs, paving the way for a sustainable and affordable fuel distribution system.
- Legislative action is also on the table, with the committee considering amendments to the Petroleum Industry Act (PIA) to ensure better representation and participation of downstream stakeholders.
Public Response and Next Steps:
- While details of the investigation and potential legal actions remain unclear, the committee’s initiative has garnered mixed reactions. Some citizens applaud the crackdown on corruption, hoping it will lead to lower fuel prices and improved supply. Others remain cautious, expressing skepticism about the effectiveness of past investigations and the potential impact on legitimate businesses.
- The committee’s commitment to transparency and stakeholder engagement is crucial in maintaining public trust and ensuring the effectiveness of its actions. Monitoring the progress of the investigation and proposed solutions will be key in determining the ultimate impact on Nigeria’s fuel sector and the lives of its citizens.