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

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

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.

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.

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.

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.

You don't deserve oxygen!!

Kriss216:

You don't deserve oxygen!!

Unfortunately for you, that is not under your control.

Simplyleo:

Unfortunately for you, that is not under your control.

Waste of oxygen!!

Kriss216:

Waste of oxygen!!

And there is absolutely nothing you can do about it.

Simplyleo:
[s]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.

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. [/s]

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

You're a hypocrite and tribalist.

This country self!!

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.

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
Certainly not easy being an entrepreneur.

What's tha business?

H

it is well.

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.

ok na

Fuel is as useless as nigeria itself

Simplyleo:

And there is absolutely nothing you can do about it.

Mad

good...

Nice one, nor be only Buhari sabi chop..






God bless Nigeria.

Kriss216:

You don't deserve oxygen!!

Seconded and Thirded ..

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?

The coming weeks no go funny.

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

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.

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.

Minister of petroleum again please?

Afoooonjjaa pple r too greedy
See as Tunji Oyabenji 1t fuel 2 scarce so DAT Igbo pples will suffer

hmmm

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

Most useless country in the world

Once fuel scarcity sets in, na him we go no say water Don pass garri for this lock down