Marketers are calling for appropriate legislation that will enforce the new fuel subsidy removal policy of the Federal Government.
Speaking during a webinar on the downstream sector at the weekend, the Managing Director of
'There was never a time government stopped marketers from importing. It was the economics of it that made marketers stopped because it didn't make sense to import products at a price that is higher than the government fixed price for the product at the pump. Gradually, all the players involved in importation stopped, especially when it became
impossible to get the refund of the subsidy payment for upward of three years. That's what has happened.
'Now, the economics are now that people can import based on prices at the pump and recover their money without having recourse to any subsidy payment. But the issues go beyond that, it is very complicated.
'First and foremost, it is not just about making a pronouncement. If we are really going to make fundamental changes within the downstream space, we really need to have the appropriate laws backing everything up so that we don't keep going back and forth over these issues in the future. Some of the issue we are trying to canvass and get government
to understand is when you retain control of pricing, every time there is need to increase prices, which invariably will come as time goes by, the government will be under tremendous pressure not to change or move the price upward because of political considerations which are quite understandable,' he said.
However, the panellists agreed that appropriate legislation is needed because deregulation could only be as effective as the legal framework put in place to guide it.
They said this included improving the refining capacity, pipelines, trucks, depots, filling stations and supporting the ancillary and derivative industries that would emerge from an improved downstream sector.
Participants at the webinar included: Mr
Others included
© Pakistan Press International, source