Challengies of Deregulation of Downstream Sector in Odeveloping Nation

s The ch every last(predicate)enge The distribution of anele color products is veneering a lot of contests in the Nigerian environment. In accompaniment the environment surrounding fossil oil products distribution in Nigeria is challenging and begs for immediate solutions. The low efficacy utilization of g all everywherenment 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 railway system that puts a drain on the only foreign substitution of the nation. As observed by Oladele (1991) there has been inadequate jolting oil allocation to the refineries for house servant consumption. This situation also leads to nether utilization of the four refineries with the attendant shortage of refined products for domestic consumption. One need to recount the despair, throw away and re current vandalization of the state-run petroleum products pipelines and oil movement infrastructure nationwide, mate with patronize accidents of haulage trucks on the nations heavily used in game spirits ways. All these pose complex problems to managers, and operators in the oil industry.

The corroboratory damage of institutionalized corruption with the frightening issuing of a local nouveau riche oil mafia that controls and co-ordinate crude-oil, and buy over the established petroleum companies and changing established name and logotype of these companies should be a study concern to the proximo of the Nigerian oil industry. From the NNPC Statis! tical bulletin, 67% of the total sales agreement of petroleum products are normally under taken by the major oil companies, while the independent market companies usually treat the remaining 33%. There has been contention over the termination of pump price of petroleum products. Curiously, during a bound 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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