Marketers, represented by the Natural Oil and Gas Suppliers Association (NOGASA) of Nigeria, have sounded the alarm regarding an impending shortage of Premium Motor Spirit (PMS) or petrol. They attribute this situation to the unsustainable cost of conducting their business, which has resulted in deserted depots, retail stations closing down, and transporters idling their trucks.
To avert a potential market shutdown between now and December 2023, Benneth Korie, the president of NOGASA, called for federal government intervention. During the association’s National Executive Meeting (NEC), Korie hinted that the country might face a petrol shortage if these challenges are not addressed before December this year.
He explained that the challenges stem from the high cost of Automotive Gas Oil (AGO) or diesel, unfavorable exchange rates, the poor condition of road networks, and the fees imposed on marketers by the Federal Inland Revenue (FIRS).
He said: “NOGASA is seriously worried that between now and December this year, in the absence of Government urgent intervention, the increasing loss of lives, businesses and jobs with the accentuation by mass shut of filling stations and packing up of petroleum tankers, all due to unattainable high cost of importation, lifting transportation and distribution of petroleum products.”
Continuing, the President said, “Similarly, Depot Owners are terribly affected by the increasing cost of the crude and exchange rate to the extent that many Depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates.
“Banks are not willing to guarantee funds release to stakeholders as a result of difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar. Many depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.”
Korie noted that the worst hit in the business is the filling station owners who find it difficult to secure funds to procure products for their retail outlets and both the Independent and Major Marketers.
He stressed that “filling stations are shutting down in great numbers on a daily basis and dealers are going out of business with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations.”
NOGASA urged the government to urgently come to the aid of the industry as quickly as possible to save it from an impending collosal collapse which will in turn result in a more devastating blow to the economy at large.
The association insisted that “the success of this government highly depends on the survival of the oil industry, whose critical stakeholders are presently most negatively affected.”
On the palliatives which the government has released for the removal of subsidy, NOGASA asked the government to provide palliatives for the marketers by releasing N600 per dollar for the next three months.
Korie said: “We wish to once again and most sincerely reiterate that the only realistic option out of this dire situation, for now, is for the government to urgently consider expediting the provision of ‘Emergency Palliative Measures,’ for marketers such that fuels can be imported at the rate of at least N600 per dollar for the next three months while waiting for the promised reactivation of our refineries.
“This will go a long way in cushioning the harsh effect of the high cost of importation and equally bring about relief to the business and cost of living generally.”
Speaking at the NEC meeting, the Independent Petroleum Marketers Association of Nigeria (IPMAN) National Vice President, John Keke Ocha dropped the hint that there is low-quality petrol in the market.
He attributed the inferior quality to the importation of the product by different suppliers from different refineries.
According to him, the only solution is domestic refining and adherence to the country’s specifications.
Meanwhile, the Nation observed that retail outlets were gradually withdrawing their services in the Federal Capital Territory (FCT)
While some were under lock and key, others resorted to vending the product with one pump.
Despite the withholding of services, there was no apparent increase in demand for the product.
