Marketers lose N3.5b to fuel price cut

By Emeka Ugwuanyi

Oil marketers have lost about N3.5 billion to the reduction of price of premium motor spirit (petrol) to N125 per litre from N145 per litre.

Except if the Federal Government decides to compensate them by reimbursing part of this loss, the loss may go above the N3.5 billion figure at the end of industry-wide collation.

The Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Tunji Oyebanji, told The Nation that currently the loss across the distribution and retail industry is N3.5 billion. Besides, he said the Federal Government has not worked on the agreement  reached after the price reduction. Part of the agreement is on fuel importation, margins review and making foreign exchange (forex) available to them for fuel importation at affordable rate.

He said: “On the imports, nothing has been said. We are still awaiting some clarity on forex availability and rate and sales margins, among others. But on pricing, we have been hounded by the Department of Petroleum Resources (DPR) and other relevant industry agencies to adjust our pumps to the new price, so no choice.

“Total impact to the industry of reduction in prices may be up to N3.5 billion. However, we are still looking for some relief. Private operators in the industry might not survive at this rate.”

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avoid making loss, the marketers said.

However, the Group Managing Director of the NNPC, Mele Kyari, said there is sufficient fuel. The country, according to him, has adequate stock of PMS to last for over 60days. “Absolutely there will be no scarcity, our supply is robust, we have fuel that will last this country even for 60-days if assuming we do not import any,” he said.