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Published On: Wed, Jan 21st, 2015

Oil marketers ask FG to pay N250 bn subsidy claims for 2014

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Major Oil Marketers of Nigeria (MOMAN) on Tuesday appealed to the Federal Government over outstanding payment of N250 billion subsidy claims owed marketers in 2014, to ensure sustainable

importation of petroleum product, saying more than 85 percent of oil marketers has complied with reduction with pump price.

MOMAN Executive Secretary, Obafemi Olawore, speaking with newsmen in Lagos, said that the amount in question was the outstanding payment of marketers on subsidy, which includes interest rate and foreign exchange.

He said that directive has been given to members of MOMAN to conform to the Minster of Petroleum Resources, Mrs. Diezani Alison-Madueke immediate directive to revert their pump price from N 97 to n 87 per litre.

He said that about 85 percent of its members had reverted to their pump price to reflect N 87 per litre, adding that others will follow suit immediately.

According to him, “We are not against the reduction of pump price to N87 per litre, but government should also increase marketers’ margin of petroleum product.

“Marketers’ margin has been stagnating since 2007; no reason was given by the minister for the reduction of the petrol pump price.

“Only N4.60 per litre was given as margin to marketers since 2007, which has not changed. The N10 reduction was on depot price not marketers margin.

“We were meant to believed that in line with Section 6 Clause 1 of the Petroleum Act, that it was the sole responsibility of the Minister of Petroleum to announce that there will be a reduction or increase in the pump price of petroleum,’’ he said.

Olawore, however urged the minister to expedite action on the committees promised to set up top look into the complaint of marketers over margin.

He said that MOMAN had agreed with Petroleum Product Pricing Regulatory Agency (PPPRA), Department of Petroleum Resources (DPR), Marine Inspectors, Audit and Ministry of Finance to take stock of product in their tank for adequate refund.

He urged the concern authority to expedite action on dipping the stock and signing the paper to allow marketers load product from storage tanks for various stations across the country.

According to him, if the people involved did to sign the document, marketers cannot load product because we have to ensure the quantum of petrol product we have in stock for government to refund marketer of the differential.

Olawore said that deregulation of the downstream of the oil and gas sector remains the only solution to drive the petroleum sector.

He said that for government to avoid issue, “this is the best time them to deregulate sector, when the price is low, adding that “It will now left for marketers to come up or down”.

He said that devaluation of naira contribute significantly to the increase of the pump price in Nigeria, adding that if the naira had not been devalued, petroleum pump price would have come down.

Olawore said that another reason why price cannot come in Nigeria against other country was issues of freight which has been on the raising rate, adding that non-working refineries is also a factor.

 

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