The cost of petrol in the pricing template that is currently
being reviewed will be determined by the rate of foreign exchange,
oil marketers have said.
According to them, marketers will only import Premium Motor
Spirit, popularly known as petrol, if the rate of forex is suitable
enough to encourage the importation of the commodity, despite the
ongoing review of template by the Federal Government.
On Friday, the Federal Government announced that it had
commenced a review of the pricing template for petrol and insisted
that the commodity would sell at N145 per litre.
However, oil marketers on Saturday, said the Federal Government
could retain the cost of petrol at N145/litre after reviewing the
pricing template, but outlined the conditions that will make this
feasible for importers of petrol.
The National Vice President, Independent Petroleum Marketers
Association of Nigeria, Abubakar Maigandi, told SUNDAY PUNCH that
it was possible to review the pricing template for PMS and retain
the cost of the commodity at N145/litre.
He said, “Yes, anything government says it wants to do on this
issue can be considered possible because the minister had already
outlined three conditions.
“The first condition has to do with regulation and the next is
for the NNPC to sell at a given rate to marketers who will now add
their margins, while the third is through forex (foreign
exchange).
“So if the government can give forex to marketers, then
automatically marketers can be able to sell at the rate of
N145/litre.
“So whether the template is reviewed or not, one major factor is
the issue of forex. Currently, the dollar is about N365 and if the
government can make it available to marketers at a rate of about
N250, then marketers will be able to sell the product at the rate
of N145/litre when they import.”
The IPMAN official also stated it is expected that Nigeria’s
refineries will start functioning properly in about 18 months based
on what the petroleum minister said recently at the National
Assembly.
Maigandi said, “We hope that in the next 18 months our
refineries will be in order, because that is what the minister said
recently and he (Kachikwu) also said we are expecting other
refineries to come on stream, like the Dangote refinery, as well as
other modular refineries.
“But the truth is that as it is now, marketers cannot import
petrol because of the cost of the commodity in the international
market and the high forex rate.
“So we are expecting government to tell which of the listed
conditions it will adopt so that this fuel crisis will end once and
for all.”
Another oil marketer, however, wondered how the template would
be reviewed to retain the cost of petrol at N145/litre, considering
the price of the commodity in the international market.
This is coming as the Nigerian National Petroleum Corporation on
Saturday stated that the pump price of petrol was N143/litre in
NNPC retail outlets and N145/litre in other filling stations, while
PMS ex-depot price of N133.28k per litre to marketers was still
being maintained.
The cost of petrol in the pricing template that is currently
being reviewed will be determined by the rate of foreign exchange,
oil marketers have said.
According to them, marketers will only import Premium Motor
Spirit, popularly known as petrol, if the rate of forex is suitable
enough to encourage the importation of the commodity, despite the
ongoing review of template by the Federal Government.
On Friday, the Federal Government announced that it had
commenced a review of the pricing template for petrol and insisted
that the commodity would sell at N145 per litre.
However, oil marketers on Saturday, said the Federal Government
could retain the cost of petrol at N145/litre after reviewing the
pricing template, but outlined the conditions that will make this
feasible for importers of petrol.
The National Vice President, Independent Petroleum Marketers
Association of Nigeria, Abubakar Maigandi, told SUNDAY PUNCH that
it was possible to review the pricing template for PMS and retain
the cost of the commodity at N145/litre.
He said, “Yes, anything government says it wants to do on this
issue can be considered possible because the minister had already
outlined three conditions.
“The first condition has to do with regulation and the next is
for the NNPC to sell at a given rate to marketers who will now add
their margins, while the third is through forex (foreign
exchange).
“So if the government can give forex to marketers, then
automatically marketers can be able to sell at the rate of
N145/litre.
“So whether the template is reviewed or not, one major factor is
the issue of forex. Currently, the dollar is about N365 and if the
government can make it available to marketers at a rate of about
N250, then marketers will be able to sell the product at the rate
of N145/litre when they import.”
The IPMAN official also stated it is expected that Nigeria’s
refineries will start functioning properly in about 18 months based
on what the petroleum minister said recently at the National
Assembly.
Maigandi said, “We hope that in the next 18 months our
refineries will be in order, because that is what the minister said
recently and he (Kachikwu) also said we are expecting other
refineries to come on stream, like the Dangote refinery, as well as
other modular refineries.
“But the truth is that as it is now, marketers cannot import
petrol because of the cost of the commodity in the international
market and the high forex rate.
“So we are expecting government to tell which of the listed
conditions it will adopt so that this fuel crisis will end once and
for all.”
Another oil marketer, however, wondered how the template would
be reviewed to retain the cost of petrol at N145/litre, considering
the price of the commodity in the international market.
This is coming as the Nigerian National Petroleum Corporation on
Saturday stated that the pump price of petrol was N143/litre in
NNPC retail outlets and N145/litre in other filling stations, while
PMS ex-depot price of N133.28k per litre to marketers was still
being maintained.
Read more https://nairalaw.com/marketers-give-conditions-to-sell-petrol-at-n145/