Challengies of Deregulation of Downstream Sector in Odeveloping Nation

s The ch anyenge The distribution of c everywhere color products is veneering a lot of contends in the Nigerian environment. In incident the environment surrounding oil colour products distribution in Nigeria is repugn and begs for immediate solutions. The low efficacy utilization of g all overnment owned refineries and petrochemical plants in Kaduna, Warri and Port Harcourt poses a lot of challenge to NNPC. It is the low capacity utilization that ofttimes result into petroleum product dearth and eventual importing of the products a origin that puts a drain on the only foreign convert of the nation. As observed by Oladele (1991) there has been inadequate stark naked oil allocation to the refineries for home(prenominal) consumption. This situation also leads to at a lower place utilization of the four refineries with the attendant shortage of refined products for domestic consumption. One need to recount the despair, throw away and recurrent vandalization of the state-run petroleum products pipelines and oil movement infrastructure nationwide, mate with denounce accidents of haulage trucks on the nations heavily used in mettlesome spirits ways. All these pose complex problems to managers, and operators in the oil industry.

The corroboratory damage of institutionalized corruption with the frightening payoff of a local nouveau riche oil mafia that controls and co-ordinate crude-oil, and acquire over the established petroleum companies and changing established call and logotype of these companies should be a study concern to the approaching of the Nigerian oil industry. From the NNPC Statistical bul! letin, 67% of the total exchange of petroleum products are commonly under taken by the major oil companies, while the independent marketing companies usually treat the remaining 33%. There has been contention over the termination of pump price of petroleum products. Curiously, during a check of just about fifty (50) years when the petroleum marketing companies sourced for the products themselves transported and distributed...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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