Penalty to throwing

‘Femi Asu

Against the latest round of fuel scarcity rocking many parts of the country, private oil marketers are calling for government intervention to enable them to access foreign exchange at a special rate for the importation of Premium Motor Spirit (petrol).

According to them, selling the product at N145 per litre is no longer feasible with the current exchange rate.

Private marketers stopped fuel importation last year due to shortage of foreign exchange and increase in crude prices, which they said had made it unprofitable to import petrol and sell same at N145 per litre.

The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, said, “The problem is that the importation (of petrol) is being handled almost 100 per cent by the Nigerian National Petroleum Corporation as private importers have backed out because the increase in crude price has made the landing cost enter subsidy.

“When the crude price hit $59 per barrel, we could not sell petrol again at N145 per litre if we were importing on our own. It is only the government (NNPC) that is importing and can warehouse the subsidy.

He said the government through the Central Bank of Nigeria should have intervened by providing foreign exchange at a special rate solely for the PMS importation for both the NNPC and private importers.

Osatuyi said, “Right now, the landing cost of the PMS is N154. If you are importing at N305 to the dollar, by the time you add bank charges, it comes to N307 to the dollar. If you apply that to the current crude price, the landing cost is N154-N155. By the time you add all the margins, the pump price is about N160-N167.

“Before private importers can resume importation, the exchange rate to a dollar must be N250 and we can sell at the price of N145 per litre.”

Commenting on the forex challenge, the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore, also said, “I am told that some people have special rates. If they do, fine; let them give to us also. We will prefer a situation where we have access to forex exchange and we can import.”

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, in a telephone interview with our correspondent earlier in the month, noted that the increase in price of crude oil had led to a corresponding increase in the prices of refined products.

“Landing cost of the PMS today has increased. By the time we land the product based on the international crude oil prices, petrol should be selling for between N165 and N170 per litre. But government is saying we should sell at N145. So, if there is no subsidy, we have to depend on the NNPC to give us the product,” he said.

A top official of a Lagos-based oil marketing company told our correspondent on condition of anonymity, “Unless government gives another ceiling price, it will not be good to sell at the current price if you import now. It is expensive to import now. Some people who have customers they don’t want to lose can just do small imports.”
Analysts at FBNQuest Capital, in an emailed note on Friday, said improved forex liquidity had led to some relief for players within the downstream sector.

“Initially, oil marketers depended solely on the parallel market for their forex requirements. However, there is now better access via the CBN’s official windows. Furthermore, over the past year, the naira has appreciated considerably on the parallel market, making PMS importation relatively affordable for marketers that still source forex from that market,” they added.

Several stakeholders, including the Lagos Chamber of Commerce and Industry, have expressed concerns about the current state of the nation’s downstream petroleum sector, especially a situation whereby the NNPC has become the sole importer of the product into the country.

The Director General, LCCI, Mr. Muda Yusuf, in a telephone interview with our correspondent, said, “It’s unfortunate that fuel queues have returned. But there is a very fundamental problem with our petroleum downstream sector, and the problem is that it is over-regulated. You cannot have a sector as big as that serving our size of population and we expect only the government provider to be supplying fuel. It is not a sustainable model.

“So, there is an urgent need to push back the role of government in the issue of retailing fuel, importing fuel and all of that. Right now, it is only the NNPC that is importing the PMS. Such a thing cannot be efficient; it creates room for all manner of abuses; some of which the marketers cannot disclose because of their own businesses.”

He said the private sector should be allowed to play a bigger role in importation, refining, distribution, marketing and other activities in the downstream sector.

Following the severe fuel scarcity the country experienced in the first quarter and parts of second quarter of last year, the Federal Government on May 11, 2016 increased the price of petrol to N145 per litre from N86, putting an end to fuel subsidy to marketers, in what was described as partial liberalisation of the sector.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, recently noted that the non-availability of forex and the inability of marketers to open letters of credit had then forced them to stop importation.

He said the NNPC was forced to take up the obligation of providing more than 90 per cent of the domestic requirement to cover the demand for petroleum products, adding, “The NNPC was not designed to provide this kind of service. Historically, the NNPC had done an average of 48 per cent of Nigeria’s fuel requirement.”

https://punchng.com/we-can-no-longer-import-sell-fuel-at-n145litre-marketers/

until we stand up and fight for ourselves,b4 we can be free frm dis heartless people. When we all stop tribalism,and religions. EnoughisEnough

The UN should close down this country. It has failed woefully.


We're like a mermaid dying of thirst in her kingdom. How can we be an oil producing nation and still be an oil deficient nation? That's a paradox.


Here's how daft the immediate and the past leaderships of this country are...

They sell a barrel of crude oil(159litres of 6 constituent oil) @ $59/N17,000 per barrel)

They later buy a barrel of 1st constituent of the crude, which is PMS, (1 barrel @ $55) + a barrel of 2nd constituent of the crude, which is kerosene, (1 barrel @ $57) + a barrel of 3rd constituent of the crude, which is diesel, (1 barrel at $70), then sum up all they spend importing what they exported @ $59, that would give $182.

They earn $59 per barrel exporting crude oil. They spend $182 importing a barrel of petrol, a barrel of kerosene, and a barrel of diesel.


A mermaid sells her fresh fish at N100. She later buys it back as fried fish at N200.

Isn't she a daft mermaid?

So this is how Buhari plans to stabilize the world price of crude oil?! Illiteracy is a Disease. Both Baru,Kachikwu and Buhari should all resign. We have better hands in this country.

Then this will prolong till January maybe even February due to cluelessness of the dullard

ok

And this issue started in December?

Those of Us who know d truth have always known dats d cause of d lingering and biting scarcity.. Eediots and goats believe marketers hoarding d product is d cause of d scarcity... Dis issue had long been coming but d devilish govt kept denying and covering d truth... Now breeze don blow, Nigerians here's d fowl nyash

When Buhari and APC are done with us, our neck's will be long like that of Tolotolo..





cc Anonimi

NNPC has been importing petrol at a loss.which account is that loss hitting abeg Yet some claimed subsidy was a scam.

princeade86:
until we stand up and fight for ourselves,b4 we can be free frm dis heartless people. When we all stop tribalism,and religions. EnoughisEnough

You are right. Together we can change Nigeria.

yeyerolling:
NNPC has been importing petrol at a loss.which account is that loss hitting abeg Yet some claimed subsidy was a scam.

Nope. The NNPC does swapping. Not buying I think. But there's still subsidy.

The worst government in africa

Double wahala for dead body.

But why isn't the Minister for Petroleum saying anything?

Apc where are the refineries you promised each year..... I Know we will get to this.

I blame the 18million zombies that voted for this sadist

So government economic team didn't see this coming? Nawa for them

Nigeria is such a mess

How can you produce petrol but don’t have any for yourself?

It’s like a kid who’s dad sells pencils but doesn’t have pencils in class

Our leaders have failed us its time we speak our minds in this country since we got our independence we as Nigerians aren't enjoying anything instead we are suffering do you really think that this leaders want to change this country
I just wish a group of Nigerians would come out and start killing this politicians because they just deserved death

if at $59 pb, the landing cost of fuel is N145-N170, imagine the nightmares GEJ was going through when crude was between $80-$90 pb to keep fuel at N97-N87 & still maintain an exchange rate of N150-N180 - $1 for over 3 years...


pmb's major albatross is his previous utterances - the lies & deceit...


it is now very obvious that GEJ was actually spending between $15b-$20b yearly on subsidy.

Where are all the subsidy is a scam folks...

Where are all the "a barrel sold for $100"... now its selling for $59 and we are already screaming.. without knowing the higher it goes the more we pay for refined crude.

At last.. jonathan has been vindicated on subsidy. He claimed to pay an approx of $400m monthly. If he had punished the masses like we are now and saved that money in our treasury.. we would be hitting $80bn, but he had a sympathetic and empatetic heart.

At $59/barrel marketers are shutting down, imagine at $100/barrel meanwhile dollar was maintained at 150 - 180, reserve was at $30bn, excess crude was as $32b... please please.. am in enough stress already..

These people are hell bent to increase the suffering of the masses although government caused but Nigerians doesnt deserve all this hardship.
Meanwhile, check my signature/profile to see latest job posts, profitable business tips, travel tips, education tips

Occupy Nigeria 2.0 loading?

This would be the death sentence of Buhari's 2019 ambition.
Should there be 1naira hike in fuel pump price,
Then it is over and out for the APC led government.

Because, even the APC members themselves will cry like a baby, at the filling station.
For me i will not cry, because i have always know that this government is useless to me and my likes.

gocac:
This would be the death sentence of Buhari's 2019 ambition.
Should there be 1naira hike in fuel pump price,
Then it is over and out for the APC led government.

Because, even the APC members themselves will cry like a baby, at the filling station.
For me i will not cry, because i have always know that this government is useless to me and my likes.

It will definitely be increased. Nothing will happen... Gavelslam and co will still keep singing Buhari's praises!

Useless people they've been calling for price increase since October

Esseite:
Where are all the subsidy is a scam folks...

Where are all the "a barrel sold for $100"... now its selling for $59 and we are already screaming.. without knowing the higher it goes the more we pay for refined crude.

At last.. jonathan has been vindicated on subsidy. He claimed to pay an approx of $400m monthly. If he had punished the masses like we are now and saved that money in our treasury.. we would be hitting $80bn, but he had a sympathetic and empatetic heart.

I wonder if you people's brains always leave you when you comment, Buhari ran a successful government for 2 years plus but nothing you people won't complain about


FYI there's been no subsidy for over a year and fuel was supplied at govt approved price , do not confuse greed with anything else


Other than allow these PDP fuckkkkers to hold Nigeria to hostage, it's better to merge marketers into 5 or more, anybody who can't cope with imports should be eliminated from the formula, Banks were merged and we got better service, I totally oppose paying subsidy because that'll be going back to the vomit we all complained about

Nigeria...

Why are people greedy like this

Of course we knew this was where we were heading to...

So why make it scarce

HtwoOw:



I wonder if you people's brains always leave you when you comment, Buhari ran a successful government for 2 years plus but nothing G you people won't complain about

Successful govt at N145 per/ltr and possible increase compared to N87.. pls shove that insultive response in your ass.. if you are not in my shoes then dont cajole me.

Esseite:


Successful govt at N145 perltr compared to N87.. pls shove that response in your ass..

Please don't be stupid, how much was lost to subsidy scam compared to the benefits Nigerians got? Upon all the subsidy there was still scarcity and queues and they even pushed for more


Subsidy was abused and should never be allowed again, period

duduade:
Nigeria...

Why are people greedy like this

Of course we knew this was where we were heading to...

So why make it scarce

Blame your government.