Major oil marketers expresses concern over
fuel scarcity
*********MOMAN explains reason for fuel Scarcity
************** Says current supply framework cannot guarantee steady, consistent supplies to the country
By Yunus Yusuf
The Major Oil Marketers Association of Nigeria on Wednesday opened up on the real cause the fuel scarcity rocking Nigeria just as it empathized with its customers as they continued to grapple with recurrent scarcity of Premium Motor Spirit, popularly known as petrol in various parts of the Country.
The Business Intelligence (TBI Africa) reports that the Chairman of MOMAN, Mr Olumide Adeosun, and the CEO/Executive Secretary of the group, Mr Clement Isong, disclosed this during a virtual press briefing that two main reasons buoyed the scarcity.
“The current scarcity of petrol is occasioned by two main reasons. Number one is the supply inadequacy in the last few weeks. Number two is the distribution challenges created by the unavailability and continuous surge in international prices of Automotive Gas Oil (diesel) MOMAN,” Adeosun said.
“Members are working with The Authority, NNPC/PPMC, NARTO and other industry stakeholders to make the product (petrol) available at the pumps and eliminate the queues as quickly as possible.
“MOMAN, as an Association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country given the current state of Government finances and unpredictable international supply shortages.
“We, therefore, recommend a
gradual price deregulation with targeted palliatives (eg. transport and agricultural
subsidies) to the public to ease implementation,” he added.
“However, in the interim, MOMAN recommends that the current single supplier strategy be reviewed.
“Asides this, the Federal Ministry of Petroleum Resources, in collaboration with the Ministry of Finance and other relevant MDAs, should set up a taskforce to immediately focus on increasing diesel supply through accelerated initiatives to increase local modular refining capacity,” Adeosun said.
This move, Isong added, “will tackle the supply and distribution challenges. It will phase rehabilitation of existing NNPC refineries to hasten supply of middle
distillates (AGO & ATK).
“MOMAN recognizes and closely associates with the need to ease challenges with respect to high energy and transportation costs occasioned by extraneous circumstances.
“MOMAN shall continually do its best to distribute petrol to its customers across the country and keep exploring opportunities to partner with industry stakeholders, The Authority, and the Government to ensure the sustainability and institutionalization of a
viable petroleum downstream sector in Nigeria.
“The full deregulation of the petroleum downstream sector and full implementation of the Petroleum Industry Act (PIA) 2021 clearly remains the most viable long-term solution to the country’s supply and distribution challenges,” he concluded.
