Challengies of Deregulation of Downstream Sector in Odeveloping Nation

s The ch entirelyenge The distribution of anoint color products is veneering a lot of altercates in the Nigerian environment. In situation the environment surrounding oil products distribution in Nigeria is gainsay and begs for immediate solutions. The low efficacy utilization of g all 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 tenor that puts a drain on the only foreign commute of the nation. As observed by Oladele (1991) there has been inadequate earthy oil allocation to the refineries for house servant consumption. This situation also leads to chthonian utilization of the four refineries with the attendant shortage of refined products for domestic consumption. One need to recount the despair, throw away and repeated vandalization of the state-run p etroleum products pipelines and oil movement infrastructure nationwide, mate with familiar accidents of haulage trucks on the nations heavily used in high school spirits ways. All these pose complex problems to managers, and operators in the oil industry.

The corroboratory damage of institutionalized corruption with the frightening issuance of a local nouveau riche oil mafia that controls and co-ordinate crude-oil, and purchasing over the established petroleum companies and changing established call and logotype of these companies should be a study concern to the incoming of the Nigerian oil industry. F rom the NNPC Statistical bulletin, 67% of th! e total barter of petroleum products are commonly under taken by the major oil companies, while the independent merchandising companies usually treat the remaining 33%. There has been contention over the termination of pump price of petroleum products. Curiously, during a full stop 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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