Challengies of Deregulation of Downstream Sector in Odeveloping Nation

s The ch in allenge The distribution of crude color products is veneer a lot of scraps in the Nigerian environment. In position the environment surrounding unadulterated products distribution in Nigeria is intriguing and begs for immediate solutions. The low efficacy utilization of g all oernment 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 grapevine that puts a drain on the only foreign transmute of the nation. As observed by Oladele (1991) there has been inadequate crude oil allocation to the refineries for municipal 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 tell vandalization of the state-run petroleum products pipelines and oil movement infrastructure nationwide, mate with normal accidents of haulage trucks on the nations heavily used in mellowed spirits ways. All these pose complex problems to managers, and operators in the oil industry.

The corroboratory damage of institutionalized corruption with the frightening proceeds of a local nouveau riche oil mafia that controls and co-ordinate crude-oil, and purchasing over the established petroleum companies and changing established names and logotype of these companies should be a study concern to the future of the Nigerian oil industry. From the NNPC Statistical bulletin, 67% of the to! tal barter of petroleum products are ordinarily under taken by the major oil companies, while the independent merchandise companies usually treat the remaining 33%. There has been contention over the termination of pump price of petroleum products. Curiously, during a point 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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