Oil marketers urged the Federal government to eliminate all obstacles or barriers that are currently impeding operations in the downstream sector on Thursday as the fuel crisis in Nigeria persists.
The oil marketers in Nigeria cited the difficulties, stating that they have an impact on the sector’s activities and include a lack of foreign currency at the N600 to a dollar government rate and the payment of rates and charges.
At the same time, Winifred Akpani, the Chairman of the Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN, visited President Bola Tinubu and urged him to lower all fees and levies owed to government organisations, suspend fees and taxes levied by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, eliminate the 2.5% security deposit for all purchases, and amend the Petroleum Industry Act, PIA 2021, which restricts the sale of certain petroleum
The marketers in Nigeria claimed that a paucity of foreign exchange had thwarted their efforts to flood the domestic market, warning that without imports, consumers might not have many options.
The ex-depot price of the product is currently N479.50 a litre, according to Mike Osatuyi, national operations controller for IPMAN, the Independent Petroleum Marketers Association of Nigeria.
Osatuyi claimed that the cost of a 33,000-litre truck has increased from N7.7 million to N21.8 million, and that marketers who previously paid must do so again before lifting the cargo.
An additional marketer who requested anonymity stated: “Oil marketers are also required to pay more than ten different unlawful types of money to the local government, unions, and other organisations.
“A tanker driver heading towards the depots should hold at least N100 for settlement,” he claimed, adding that without it, he would be unable to lift the product. These illicit payments are extortion, which must be distributed to customers in some way.
Similarly, Winifred Akpani, the Chairman of DAPPMAN, who recently paid a visit to President Bola Tinubu, said: “The dynamics of supply and demand will naturally promote competition and efficiency and prevent price gouging. Further investments in infrastructure and the employment of the throngs of Nigerian youths will result from deregulation. It is important to ensure that the government will give you its full support if you want to build a stable and robust downstream industry.
“We applaud Mr. President’s statement on harmonization to a single foreign exchange rate. This is critical as this will eliminate arbitrage and provide a level playing field in our industry in particular and the Nigerian economy at large. This will also ensure the highest quality of product supply at the best prices.
“Our further humble request is that all dues and levies to government agencies particularly the 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.
“That all charges and taxes imposed by the regulator, NMDPRA as stipulated in the PIA 2021 be suspended until we achieve market stability. That the 2.5% security deposit requested by NNPC Ltd for all purchases be scrapped as they never overload marketers. A revision of the clause in the PIA 2021 which restricts importation to only companies with active local refining licences and /or proven track records of international crude oil and petroleum products trading. [s.318 (9)].
“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.”
Billy Gillis-Harry, the national president of PETROAN—the Petroleum Products Retail Outlets Owners Association of Nigeria—said the difference that marketers must add is significant and will have an impact on businesses.
