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•Warn 7.5% VAT on diesel‘ll inflict more hardship
By Adewale Sanyaolu
Despite the removal of subsidy on Premium Motor Spirit(PMS), popularly called petrol, by the Federal Government and the exchange rate unification, Major Oil Marketers Association of Nigeria(MOMAN) has said some challenges are militating against its effort at resuming fuel importation.
Chairman of MOMAN, Mr. Olumide Adeosun, stated this in a statement made available to Daily Sun yesterday.
MOMAN noted that the challenge to fuel importation will whittle down NNPCL’s imports as the private sector takes over the burden while awaiting the resuscitation of local refineries.
Adeosun who is also the Chief Executive Officer of Ardova Plc, while applauding the deregulation of the petroleum downstream sector and the unification of foreign exchange rates, maintained that other challenges which include increased productivity in the oil and gas sector, rising cost of food and transportation, sustainable welfare package for citizens and insecurity were yet to be addressed by government.
Adeosun hailed the inauguration of a committee on fiscal policy and tax reforms but appealed to the government to suspend the 7.5 per cent VAT on diesel until the impact of the petrol price increase is absorbed, warning that VAT on diesel would inflict additional burden on Nigerians.
Adeosun further urged government to consider subsidies on transportation and tackle challenges associated with insecurity, crude oil theft, as well as fuel and power subsidies.
He mentioned that MOMAN members has capacity to import petrol into the country because importation licenses are renewed on a quarterly basis.
“The reality is that many of us have import licenses that are yet to expire. We renew them on a quarterly basis through the NMDPRA portal. Some of us have been importing diesel, so we need these licenses. The licenses cover multiple products such as ATK, PMS, and AGO. The regulator will tell you that we need them even when we are receiving products from the Nigerian National Petroleum Company Limited (NNPCL), particularly on the high sea.”
Adeosun also emphasized the need for efficiency in the importation and delivery operations process to offset the shortcomings in forex rates.
“That has often been the case when aligning with the NNPCL operating regime. Efficiency has always been at the forefront and subsidies will absorb all of that. As for us, we own the vessels, depots, trucks, and retail outlets, so we can afford to optimise efficiency,”.
The MOMAN boss called on the government to implement favourable regulatory framework, provide incentives for renewable energy projects, and encourage research and development in clean technologies.
“This newfound commitment to alternative fuels is not only driven by environmental concerns but also by the economic and social benefits associated with a transition to a sustainable energy future. By embracing alternative fuels and renewables, governments are not only leading the way towards a greener and more resilient future but also fostering innovation, job creation, and energy security for our country,” he said
