A major stakeholder in the Oil and Gas Industry have attributed the pitiable condition of infrastructure in the petroleum downstream sector to long years of underpricing the pump price of petrol through the introduction of fuel subsidy regime.
The Executive Secretary of Major Oil Marketers Association of Nigeria, Mr. Clement Isong who made this assertion during a telephone chat with the Vanguard Newspapers, stated that he understands the challenges that price regulation has created over the year. He noted that the problem is because government have kept Premium Motor Spirit (petrol) at artificially low for such a long time therefore we are unable to achieve what is called price-recovery in order to maintain a lot of the infrastructure in the downstream.
He further stressed that with government owned refineries, pipelines and depots in very bad state and in most cases not functional, Nigeria had to depend on importation and trucking the refined product by roads to move petrol across the country.
He expressed the hope that the on-going effort to deregulate the downstream sector would lead to renewal, rehabilitation and revival of the entire infrastructure in the industry, which are currently in bad state.