FG May Increase Petrol Price Soon - Marketers

The oil marketers also told our
correspondent that the current challenge
they faced in the industry was how to
sustain the improvement in the supply of
petrol across the country.
They said they had started importing petrol
as many oil majors and a few independent
dealers were accessing the United States
dollars, as promised by the Minister of
State for Petroleum Resources, Dr. Ibe
Kachikwu.
The Corporate Affairs Manager, Nipco Plc,
a renowned oil marketing firm, Mr. Lawal
Taofeeq, stated that the petrol subsidy
issue must be managed properly by the
government in order to ensure adequate
sustenance of the present improvement in
fuel supply across the country.
He noted that the marginal rise in the price
of crude oil could force the government to
review the pump price of petrol upwards,
particularly should the government insist on
not paying petrol subsidy to oil marketers.
Taofeeq said, “We’ve started importing
products. But on sustenance, it depends on
how the government handles the issue of
subsidy. You know subsidy on petrol has
returned and its management will go a long
way in affecting fuel supply.
“Before, there was no subsidy on petrol.
But now, considering the rise in crude oil
price, there is subsidy despite the fact that
the official pump price hasn’t been changed.
So, if the subsidy issue is not managed
properly, marketers may not want to import
the product unless they are sure of their
money.
“The government has been using the price
modulation technique, and as crude oil price is
going up, it will be adjusting the pump price of
petrol. Any moment from now, there may be an
upward review in the pump price of petrol to
take care of the rise in the price of crude oil in
the international market.”
Taofeeq stated that although petrol supply
had improved considerably, some filling
stations had yet to start getting the
product seamlessly.
He said, “The level of supply has improved
but you still find out that in some areas,
not all the petrol stations dispense the
product. All the stations cannot have fuel
at the same time. For instance, on Ikorodu
Road in Lagos, you still find queues in front
of some petrol stations.
“This is because not all the outlets on this
road are dispensing fuel as of today
(Friday). The supply mechanism cannot take
or get to all the stations in one day. Some
may have to hold on for about four to five
days before it gets to them. And when it
gets to them, others may have exhausted
their product. That is why you see queues in
some places.”
The Executive Secretary, Major Oil
Marketers Association of Nigeria, Mr.
Obafemi Olawore, stated that the NNPC
had ensured that petrol dealers would get
the product, adding that many marketers
had also started importing the product.
On the measures so far put in place by oil
marketers to stabilise and sustain supply,
Olawore said, “That is the challenge all of
us face now. The sustenance is now the issue
but we will try to sustain it.”
When asked if marketers had started
accessing forex for petrol importation, he
said, “The issue is that they (government
and the NNPC) have spoken with the
upstream companies. These companies are
helping some majors. And the NNPC, on its
own, is helping some majors as well as other
marketers.
“The NNPC has done a lot. Let us give it
to them because they’ve truly done a lot.
We have also been bringing in the product
but majority of the vessels were brought in
by the NNPC. That is why I say it is right
for dealers and consumers to laud them this
time around.”