NMDPRA, marketers meet to avert petrol scarcity

•We’re cash-strapped, says NOGASA

 

From Uche Usim, Abuja 

Following oil marketers’ cry over paucity of funds to import products, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) met with them on Wednesday in Abuja, as part of the strategy to avert products scarcity since the sector has been fully deregulated.

In attendance were; Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Nigerian National Petroleum Company Limited (NNPCL) and other stakeholders.

Speaking after the meeting, the NMDPRA Chief Executive Officer, Mr Farouk Ahmed, said the engagement was to firm up modalities on petrol importation, especially now that the NNPCL will cease to be the sole importer of petroleum products and eventually downgrade its market share to 30-40%.

According to him, oil marketers with outstanding payments should come for reconciliation in order to ensure the ecosystem thrives in healthy competition.

“The market is open already, we have to follow the regulations and we have rolled out policies that are user friendly and some of them have started putting their obligations in place.

“NNPC is slowing down their importation so we need people that will fill the gap so that we do not have shortage in the country.

“We agree that NNPC will continue to import until we have critical mass of importers. About two or three marketing companies have reached out to us and booked cargos coming in July and we are fast-tracking the process of issuing their license to import.

“FX the market is deregulated and I do not believe that we should subsidize FX

This price that NNPC dropped took cognisance of the exchange rate of N650 per dollar so if the Naira improves the price will change”, he explained.

In another development, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), called on the federal government to immediately pay up billions of naira it owes marketers for bridging costs that accumulated long before subsidy on petrol was removed.

NOGASA President, Benedict Korie, in a media briefing said the petrol scarcity horror could resurface as the marketers are currently cash-strapped with no funds to import products.

According to him, the removal of subsidy has thrown up new challenges as marketers now need huge funds to import.

He said the cost of importation has tripled, adding that securing bank loans come with a scathing interest of 30%, saying it was akin to economic suicide.

He  said: “Before now, we had the PEF that took care of bridge claims but now, it’s no more. So, fg should pay marketers their outstanding bridge claims before subsidy was removed. No payment, no petrol because marketers are broke. Interest rate is too high. Marketers are working for the banks. No one has invited us for reconciliations. They owe me personally close to N300 million. We’re suffering.

“Removing subsidy is not enough. Priority should be given to diesel. It should come down because it will make petrol price to come down as well.

“Take the subsidy removed and give to farmers to make food available”.

On the issue of roads, government should do more. Our tankers are being destroyed on bad roads. Use the subsidy money to fix the roads.

He also urged the NNPCL to immediately deliver products to marketers that were paid for long before subsidy was removed.

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