The Major Oil Marketers Association of Nigeria (MOMAN) has said that the regulated N165 pump price for premium motor spirit (PMS), also known as petrol, is unsustainable for marketers of the product in Nigeria.
Olumide Adeosun, Chairman, MOMAN, conveyed this displeasure on Wednesday at a webinar of consumer protection workshop for oil marketers by the Federal Competition and Consumer Protection Commission (FCCPC).
He blamed the fuel crisis on the ongoing conflict between Russia and Ukraine which had disrupted global energy supply distribution.
He compared the current situation to the COVID-19 pandemic era with some countries moving to halt exportation of petrol in favour of their own national energy securities.
He explained that it would be difficult to enforce any kind of price control mechanism on marketers who had to slightly adjust their prices based on how much they bought products from the depots.
He advocated the need for Nigeria to gradually reduce the subsidy on premium motors spirit (PMS) to nip the excruciating fuel crisis in the bud.
Nigeria, the oil marketers also said, should also consider subsidising mass transportation and productive activities and in such areas such as agriculture.
He told the gathering that there is an energy crisis impacting the world, developed and developing countries alike, similar to the COVID-19 pandemic.
He said countries have different approaches of dealing with the problem, adding that there is some energy nationalism going on, leading to some major refining countries hoarding petroleum products like diesel for local use as was the case with COVID-19 vaccines.
He said some developing countries are subsidising the cost, leading to widespread outages in those countries. He also said most countries are allowing the price to adjust, leading to higher prices but with product availability.
He added: “MOMAN believes the answer is somewhere in between. Having subsidised PMS for so long,
Nigerian institutions now have a diminished capacity to deal with the current international energy crisis. If the country had spent monies spent on subsidies on education, health and infrastructure,
Nigerians and Nigerian businesses would have been better equipped to face today’s energy challenges. However, better late than never. Everyone has a role to play.
We must all reduce consumption and find other ways to weather the current energy crisis as no government can make this painless.
“Predictably, as a country, we shall be faced by the choice of queues and unavailability of products or increases in price at the right pace to make product available.”
He said his association appreciates the challenges the NMDPRA (the Authority) and NNPC face in making the product available despite the restrictive supply environment, extremely high international products costs and the almost insurmountable international logistics challenges occasioned by the unavailability of diesel and its ubiquitous place in the supply chain.
Speaking, Mr. Babatunde Irukera, Executive Vice Chairman, FCCPC, implored oil marketers to shun anti-competitive conducts and other acts that would short-change consumers in the country.
He was represented by Mr. Adamu Abdullahi, Executive Commissioner, Operations, FCCPC. He expressed his commission’s commitment to the protection of consumers from exploitation.
Meanwhile, the Nigerian Ports Authority (NPA) on Wednesday said that two out of the six ships waiting to berth at the port were carrying 149,985 metric tons (MT) of petrol.
The NPA in its daily Shipping Position said the other four ships were carrying bulk wheat, fertiliser and container.
It said that 25 other ships laden with petroleum products, food items and others were expected to arrive at the Lagos Port Complex from July 13 to July 28. NPA said that the ships contained general cargo, container, bulk sugar, bulk wheat, frozen fish, bulk clinker, bulk urea, bulk gypsum, bulk steam coal, petrol and bulk fertiliser.
The organisation said that 19 other ships were at the ports discharging bulk wheat, general cargo, frozen fish, soya bean, bulk sugar, container, bulk coal, butane gas and petrol.
