An oil and gas merchant, Capt. Emmanuel Iheanacho, has
attributed the persistent scarcity of petrol to monopoly of the
product by the Nigerian National Petroleum Corporation.
Iheanacho, also the Chairman, Integrated Oil and Gas Ltd., told
the News Agency of Nigeria in Lagos on Tuesday that the inability
of NNPC to create a window for private importers to import petrol
also contributed to the scarcity.
According to him, the current shortage in fuel importation gap
was caused by the landing cost margin of N171 per litre and the
selling cost pegged at N145 per litre.
Iheanacho said it was unrealistic for marketers to import and
sell at that rate.
“The selling of the product at N145 per litre is no longer
feasible with the current exchange rate.
“Shortage of foreign exchange and increase in crude prices have
made it unprofitable to import petrol and sell same at N145 per
litre.
“The problem is that importation of petrol is being handled,
almost 100 per cent, by NNPC, while private importers backed out
because the increase in crude price has made the landing cost
high,” he said.
Iheanacho said that the marketers’ huge debts of over N800bn had
also contributed to their inability to import petrol.
He said that most independent marketers had closed their
companies due to inability to pay their workers.
Iheanacho urged the Federal Government to settle all the
outstanding debts owed marketers since 2015.
According to him, commercial banks have started taking over the
property and tank farms of some companies that could not repay
their loans.
NAN reports that loading of petrol had commenced in Apapa.
A visit to Apapa on Tuesday showed that hundreds of trucks were
on the queue waiting to load the product at Total, Forte Oil, Oando
Plc, MRS, NIPCO and other private depots.
NAN correspondent who monitored the fuel situation in Lagos
metropolis reports that long queues of motorists persisted in many
filling stations in the metropolis.
In areas like Ikorodu, Epe, Ibeju-Lekki, Oshodi, Ajegunle,
Ikotun, Bariga and Sango-Ota, some stations were sold petrol
between N180 and N200 per litre.
In Ikorodu area, many filling stations sold at N200 per litre,
while only a few sold at the official price of N145 per litre.
Commercial bus operators increased their fares by more than 100
per cent, claiming that they bought petrol above the official price
of N145 per litre.
(NAN)
An oil and gas merchant, Capt. Emmanuel Iheanacho, has
attributed the persistent scarcity of petrol to monopoly of the
product by the Nigerian National Petroleum Corporation.
Iheanacho, also the Chairman, Integrated Oil and Gas Ltd., told
the News Agency of Nigeria in Lagos on Tuesday that the inability
of NNPC to create a window for private importers to import petrol
also contributed to the scarcity.
According to him, the current shortage in fuel importation gap
was caused by the landing cost margin of N171 per litre and the
selling cost pegged at N145 per litre.
Iheanacho said it was unrealistic for marketers to import and
sell at that rate.
“The selling of the product at N145 per litre is no longer
feasible with the current exchange rate.
“Shortage of foreign exchange and increase in crude prices have
made it unprofitable to import petrol and sell same at N145 per
litre.
“The problem is that importation of petrol is being handled,
almost 100 per cent, by NNPC, while private importers backed out
because the increase in crude price has made the landing cost
high,” he said.
Iheanacho said that the marketers’ huge debts of over N800bn had
also contributed to their inability to import petrol.
He said that most independent marketers had closed their
companies due to inability to pay their workers.
Iheanacho urged the Federal Government to settle all the
outstanding debts owed marketers since 2015.
According to him, commercial banks have started taking over the
property and tank farms of some companies that could not repay
their loans.
NAN reports that loading of petrol had commenced in Apapa.
A visit to Apapa on Tuesday showed that hundreds of trucks were
on the queue waiting to load the product at Total, Forte Oil, Oando
Plc, MRS, NIPCO and other private depots.
NAN correspondent who monitored the fuel situation in Lagos
metropolis reports that long queues of motorists persisted in many
filling stations in the metropolis.
In areas like Ikorodu, Epe, Ibeju-Lekki, Oshodi, Ajegunle,
Ikotun, Bariga and Sango-Ota, some stations were sold petrol
between N180 and N200 per litre.
In Ikorodu area, many filling stations sold at N200 per litre,
while only a few sold at the official price of N145 per litre.
Commercial bus operators increased their fares by more than 100
per cent, claiming that they bought petrol above the official price
of N145 per litre.
(NAN)
Read more https://nairalaw.com/how-nnpc-caused-fuel-scarcity-oil-marketer/