Subsidy: Why Oil Marketers Plan Petrol Import As CBN Floats Forex  

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CBN

Oil marketers have intensified efforts to import petrol into the country, following the liberalisation of foreign exchange rates by the Central Bank of Nigeria, CBN

 

The prevalence of multiple foreign exchange rates and other problems had prevented the marketers from importing the product, forcing them to depend on NNPC Limited for domestic supplies.

 

CBN

But with the CBN’s action, the oil marketers, who spoke with Vanguard, yesterday, expressed optimism that their first shipment would arrive the country in the next few weeks.

 

The prevalence of multiple foreign exchange rates and other problems had prevented the marketers from importing the product, forcing them to depend on NNPC Limited for domestic supplies.

 

But with the CBN’s action, the oil marketers, who spoke with Vanguard, yesterday, expressed optimism that their first shipment would arrive the country in the next few weeks.

 

Chief Executive Officer/Executive Secretary, Major Oil Marketers Association of Nigeria, MOMAN, Clement Isong, said: “We intend to import in the next few weeks.”

 

Similarly, Managing Director/CEO of 11 Plc, Adetunji Oyebanji, said: “We will take a look. I think we are getting closer than ever.”

 

On his part, National President of Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Okoronkwo, said the association was currently considering importation.

 

Chairman of Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Dame Winifred Akpani, who led stakeholders to visit President Bola Tinubu, had tasked him to adopt measures capable of ending fuel crises in the country, while achieving stability in Nigeria’s downstream sector.

 

She had said: “Our further humble request to the president is that all dues and levies to government agencies, particularly NPA Plc and NIMASA, be reduced to the barest minimum and payable in naira. This will drastically reduce the pressure on our foreign exchange rate reserve and keep in check the pump price of petrol.

 

“All charges and taxes imposed by the regulator, NMDPRA, as stipulated in the Petroleum Industry Act, PIA 2021 be suspended until we achieve market stability.

 

“The 2.5 per cent security deposit requested by NNPC Limited for all purchases be scrapped as they overload marketers. The government should revise the clause in the PIA 2021, which restricts importation to only companies with active local refining licenses and/or proven track records of international crude oil and petroleum products trading.

 

“In conclusion, we would add that stability in the petroleum industry will ultimately lead to the much-needed energy transition.

 

“We anticipate less dependence on fossil fuels which will result in more investment and faster development of gas and electricity as alternative sources of energy.

 

“We thank you once again for this opportunity and pray that our beloved nation will experience sustainable growth and economic prosperity under your astute leadership.”

 

(Vanguard)

 

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