The Federal Government may soon effect
an upward review in the pump prices of Premium Motor Spirit, popularly
known as petrol, oil marketers have said, attributing this to the recent
increase in the cost of crude oil at the international market.
Crude oil price had fallen below $30 per
barrel earlier this year, but as of May 2, 2016, the commodity’s cost
rose to $45.83, according to data obtained from the Nigerian National
Petroleum Corporation on Saturday in Abuja.
The oil marketers also told our
correspondent that the current challenge they faced in the industry was
how to sustain the improvement in the supply of petrol across the
country.
They said they had started importing
petrol as many oil majors and a few independent dealers were accessing
the United States dollars, as promised by the Minister of State for
Petroleum Resources, Dr. Ibe Kachikwu.
The Corporate Affairs Manager, Nipco
Plc, a renowned oil marketing firm, Mr. Lawal Taofeeq, stated that the
petrol subsidy issue must be managed properly by the government in order
to ensure adequate sustenance of the present improvement in fuel supply
across the country.
He noted that the marginal rise in the
price of crude oil could force the government to review the pump price
of petrol upwards, particularly should the government insist on not
paying petrol subsidy to oil marketers.
Taofeeq said, “We’ve started importing
products. But on sustenance, it depends on how the government handles
the issue of subsidy. You know subsidy on petrol has returned and its
management will go a long way in affecting fuel supply.
“Before, there was no subsidy on petrol.
But now, considering the rise in crude oil price, there is subsidy
despite the fact that the official pump price hasn’t been changed. So,
if the subsidy issue is not managed properly, marketers may not want to
import the product unless they are sure of their money.
“The government has been using the price
modulation technique, and as crude oil price is going up, it will be
adjusting the pump price of petrol. Any moment from now, there may be an
upward review in the pump price of petrol to take care of the rise in
the price of crude oil in the international market.”
Taofeeq stated that although petrol
supply had improved considerably, some filling stations had yet to start
getting the product seamlessly.
He said, “The level of supply has
improved but you still find out that in some areas, not all the petrol
stations dispense the product. All the stations cannot have fuel at the
same time. For instance, on Ikorodu Road in Lagos, you still find queues
in front of some petrol stations.
“This is because not all the outlets on
this road are dispensing fuel as of today (Friday). The supply mechanism
cannot take or get to all the stations in one day. Some may have to
hold on for about four to five days before it gets to them. And when it
gets to them, others may have exhausted their product. That is why you
see queues in some places.”
The Executive Secretary, Major Oil
Marketers Association of Nigeria, Mr. Obafemi Olawore, stated that the
NNPC had ensured that petrol dealers would get the product, adding that
many marketers had also started importing the product.
On the measures so far put in place by
oil marketers to stabilise and sustain supply, Olawore said, “That is
the challenge all of us face now. The sustenance is now the issue but we
will try to sustain it.”
When asked if marketers had started
accessing forex for petrol importation, he said, “The issue is that they
(government and the NNPC) have spoken with the upstream companies.
These companies are helping some majors. And the NNPC, on its own, is
helping some majors as well as other marketers.
“The NNPC has done a lot. Let us give it
to them because they’ve truly done a lot. We have also been bringing in
the product but majority of the vessels were brought in by the NNPC.
That is why I say it is right for dealers and consumers to laud them
this time around.”
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