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Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing - Politics - Nairaland

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Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by ijustdey: 3:17pm On Apr 16, 2020
There may be fuel scarcity across Nigeria soon as oil marketers on Thursday voiced their disagreement with the Federal Government over the recently announced price modulation, regarding petrol pricing in the country.

The oil marketers, under the umbrella of Major Marketers Association of Nigeria (MOMAN), is calling for full “price liberalisation” rather than “price modulation” with respect to Premium Motor Spirit (PMS), commonly known as petrol.

MOMAN’s Chairman, Mr Tunji Oyebanji, in a statement on Thursday, said that only full price deregulation will bring about long term stability in the downstream sector. Oyebanji said it had become necessary for the major oil marketers to state their position because of what the Minister of State for Petroleum Resources, Chief Timipre Sylva said recently.

Timipre had announced in a statement that the government would implement a policy of “price modulation,” which means it will give effect to existing legislation enabling it to set prices in line with market realities through the Petroleum Products Pricing Regulatory Agency (PPPRA) as provided in its Act.

But speaking for the oil marketers, Oyebanji said the clear and obvious risk is that the country had never been able to increase pump prices under this law, leading to high and unsustainable subsidies and depriving other key sectors of the economy of necessary funds.

“Our current situation, laid bare by the challenges of coronavirus to the health of our citizens in particular and the economy of our country in general, demands that we are honest with ourselves at this time.

A fundamental and radical change in legislation is necessary,” he said. He added that “When crude oil prices go up, government has always been unable to increase pump prices for socio-political reasons leading to these high subsidies and we believe the only solution is to remove the power of the government to determine fuel pump prices altogether by law.”

According to Oyebanji, purchase costs and open market sales prices should not be fixed but monitored against anti-competitive and antitrust abuses by the already established competition commission and subject to its clearly stated rules and regulations.

He further said: “There is no country or economy where governments do not have the power to influence prices. Nigeria is no different with respect to any other commodity or product.

Governments use economic tools such as taxes or interventions on the demand side or the supply side of the market and other administrative interventions to influence prices where it needs to.

“The problem here is that government has retained for itself by law the power and the responsibility to fix pump prices of PMS which is what puts it under so much pressure and costs the country so much in terms of under-recoveries or subsidies when it cannot increase prices when necessary to do so.

“It makes sense to relieve itself of this obligation now when crude prices are low and resort to influencing prices using the same tools it does for any other commodity or item on the market. According to MOMAN Chairman, “We want the market to determine the price. There should be a level-playing field. Everybody should have access to foreign exchange to be able to import and sell petrol at a pump price taking its landing and distribution costs into consideration.”

He insisted that the government should no longer fix petroleum prices as that would continue to keep our economy down He said health and educational sector should be given a higher priority than paying for subsidy on petroleum.

“We support the pronouncement of the NNPC GMD, Mallam Mele Kyari, which said subsidy or under recovery must be things of the past,” he said. He said MOMAN recommends a legal and operational framework comprising of a downstream industry operations regulator, the Federal Competition and Consumer Protection Commission (FCCPC) or Competition Commission (for pricing issues) and the interplay between demand and supply.

This, he said, will ensure a level-playing field, protect the Nigerian consumer and curb any market abuse or attempts to deliberately cause inequities in the system by any stakeholder. He said the pricing system should allow internal equalisation by marketers which would be both competitive and equitable.

Source: https://www.dailytrust.com.ng/fuel-scarcity-looms-as-fg-oil-marketers-disagree-on-pricing.html

3 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Iyiataata92: 3:24pm On Apr 16, 2020
I didn't celebrate when government brought down the price of petrol to 125 cos I knew that a shocker was in the offing.
But they should just allow us to face one problem before another cos any scarcity of fuel now will only fuel the scarcity of food already imposed on us.

No Pun Intended though

40 Likes 3 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Simplyleo: 3:25pm On Apr 16, 2020
Oya, those people from that side, here comes another opportunity on a platter of Gold to once again insult the daylight out of Buhari, Nigeria and yourselves. grin

Since it is about FG, the marketers are very correct. Accordingly, let's start competition on who has the longest tongue when it comes to insulting Buhari. grin

13 Likes 6 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Kriss216: 3:33pm On Apr 16, 2020
Simplyleo:
Oya, those people from that side, here comes another opportunity on a platter of Gold to once again insult the daylight out of Buhari, Nigeria and yourselves. grin

Since it is about FG, the marketers are very correct. Accordingly, let's start competition on who has the longest tongue when it comes to insulting Buhari. grin
You don't deserve oxygen!!

81 Likes 7 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Simplyleo: 3:36pm On Apr 16, 2020
Kriss216:

You don't deserve oxygen!!
Unfortunately for you, that is not under your control.

31 Likes 7 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Kriss216: 3:38pm On Apr 16, 2020
Simplyleo:

Unfortunately for you, that is not under your control.
Waste of oxygen!!

50 Likes 5 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Simplyleo: 3:44pm On Apr 16, 2020
Kriss216:

Waste of oxygen!!
And there is absolutely nothing you can do about it.

23 Likes 5 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Nobody: 3:48pm On Apr 16, 2020
Simplyleo:
Oya, those people from that side, here comes another opportunity on a platter of Gold to once again insult the daylight out of Buhari, Nigeria and yourselves. grin

Since it is about FG, the marketers are very correct. Accordingly, let's start competition on who has the longest tongue when it comes to insulting Buhari. grin


You always like to turn every thread into tribal bashing thread.

You're a hypocrite and tribalist.

68 Likes 4 Shares

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by philip0906(m): 3:50pm On Apr 16, 2020
This country self!!

1 Like

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Nobody: 3:50pm On Apr 16, 2020
But speaking for the oil marketers, Oyebanji said the clear and obvious risk is that the country had never been able to increase pump prices under this law, leading to high and unsustainable subsidies and depriving other key sectors of the economy of necessary funds.

“Our current situation, laid bare by the challenges of coronavirus to the health of our citizens in particular and the economy of our country in general, demands that we are honest with ourselves at this time.

A fundamental and radical change in legislation is necessary,” he said. He added that “When crude oil prices go up, government has always been unable to increase pump prices for socio-political reasons leading to these high subsidies and we believe the only solution is to remove the power of the government to determine fuel pump prices altogether by law.”

In other words, oil subsidy has to go....

If oil subsidy had been removed since 1993...when it was first mooted, by now we would have had more refinieries, extra income from exports, and crucially...more jobs due to investment.

And it is the jobs that attract me...especially as more jobs would be good for...poor Nigerians.

9 Likes 1 Share

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by DirtyGold: 3:51pm On Apr 16, 2020
Kriss216:

You don't deserve oxygen!!
Hanhan... guy, you are ash o... try to be green a little na
Dont transfer coro aggression on another please, thank you sir.


As to the thread, I'm just wondering how these global realities will affect the dangote refinery.
The permutations and messed up projections lipsrsealed
Certainly not easy being an entrepreneur.

What's tha business?

1 Like

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Kizzygentle: 3:51pm On Apr 16, 2020
H
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by ewomazino2017(m): 3:51pm On Apr 16, 2020
it is well.
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by StreetFight: 3:51pm On Apr 16, 2020
They are mad. Which fuel scarcity? How many cars are being fuelled in the major cities in the last three weeks. Let them just close all fuel stations since we are all mad.

11 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by epini(m): 3:51pm On Apr 16, 2020
ok na
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by crafteeworld: 3:51pm On Apr 16, 2020
Fuel is as useless as nigeria itself
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by revived: 3:51pm On Apr 16, 2020
Simplyleo:

And there is absolutely nothing you can do about it.



grin grin grin grin Mad grin grin

4 Likes 1 Share

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by NwaNimo1(m): 3:51pm On Apr 16, 2020
good...
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by freshkpomo(m): 3:51pm On Apr 16, 2020
Nice one, nor be only Buhari sabi chop..






God bless Nigeria.
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by EdoPrince93(m): 3:52pm On Apr 16, 2020
Kriss216:

You don't deserve oxygen!!
Seconded and Thirded .. smiley

11 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by nkwuocha1: 3:53pm On Apr 16, 2020
Lol....
Everything going on these days is a pointer that will surely spark anarchy,unrest and revolution.

First hunger from coronavirus
Nepotism in sharing of pillatives
Police brutality
Scarcity of edible food, hike in food price.
Depression as a result of boredom
Recession
Oil price drastic fall

Now this? grin

The coming weeks no go funny.

5 Likes 1 Share

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Maranzano(m): 3:53pm On Apr 16, 2020
Fuel scarcity is all that is needed to drive everyone to the streets again. No light, excess heat and no fuel, that' will be the end of the lock down

4 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by gurunlocker: 3:53pm On Apr 16, 2020
Simplyleo:
Oya, those people from that side, here comes another opportunity on a platter of Gold to once again insult the daylight out of Buhari, Nigeria and yourselves. grin

Since it is about FG, the marketers are very correct. Accordingly, let's start competition on who has the longest tongue when it comes to insulting Buhari. grin

Minister of petroleum again please?

2 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by OkpaAkuEriEri(m): 3:53pm On Apr 16, 2020
Afoooonjjaa pple r too greedy
See as Tunji Oyabenji 1t fuel 2 scarce so DAT Igbo pples will suffer
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by rawtouch: 3:53pm On Apr 16, 2020
hmmm
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by StreetFight: 3:53pm On Apr 16, 2020
Maranzano:
Fuel scarcity is all that is needed to drive everyone to the streets again. No light, excess heat and no light. That's the end of lock down

If you troop to the streets, the Security Forces will use you for shooting practice

4 Likes

Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by virginboy1(m): 3:53pm On Apr 16, 2020
Please don't make racist and tribalistic comments on this section
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Bria234: 3:54pm On Apr 16, 2020
Most useless country in the world
Re: Fuel Scarcity Looms As FG, Oil Marketers Disagree On Pricing by Sunnycliff(m): 3:54pm On Apr 16, 2020
Once fuel scarcity sets in, na him we go no say water Don pass garri for this lock down

2 Likes

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