Reps demand N800bn supplementary budget for fuel marketers

The House of Representatives is unhappy over the lingering
scarcity of petrol in the country and has asked the Executive to
submit a N800bn supplementary budget to the National Assembly to
offset the debts allegedly owed fuel marketers.

The House Committee on Petroleum Resources (Downstream) stated
in Abuja on Sunday that if offsetting the debts would end the
scarcity, it was the right step to take by the Federal
Government.

The Chairman of the committee, Mr. Joseph Akinlaja, said the
House had come to the conclusion that the Nigerian National
Petroleum Corporation could not handle the importation of petrol
alone and successfully end the current scarcity.

Akinlaja noted that with the country’s four refineries producing
little or nothing to augment the importation by the NNPC, the
scarcity would continue because people would also continue to
exploit loopholes in the distribution chain.

He said reports at the disposal of the committee suggested that
the Independent Petroleum Marketers Association, Depot and
Petroleum Products Marketers Association and the Major Oil
Marketers Association of Nigeria were collectively owed N800bn by
the government for previous importation.

He added that as a result of the mounting debts, IPMAN, DAPMAN
and MOMAN stopped importing products, leaving the NNPC alone to
handle the challenge.

Akinlaja also stated that amid the scarcity, the fixing of the
pump price of N145 at a time the government itself had admitted
that the landing cost of petrol was N171, did not help matters.

He said, “This House has passed several resolutions on fuel
scarcity. We have said on countless occasions that our four
refineries must work at full capacity. We have said that if it is
N145 per litre, enforcement agencies must be able to enforce the
price.

“Now, IPMAN, DAPMAN and MOMAN, they said government is owing
them N800bn; they are no longer importing. Let the government bring
N800bn supplementary budget, we will consider it for this problem
to be over.

“Are we going for full deregulation? Let the government come out
fully to say they want to deregulate. The House is ready to oblige
them on any of these issues to end the scarcity.”

Akinlaja also said another factor to be considered was the
rising price of crude oil, which must naturally affect the pump
prices of petroleum products because Nigeria was an importer of
fuel.

He added, “The way it is, if crude oil price is going up, that
is good for us as a country, because we are making more money. But,
the other side of it is that we also have to pay more for the
imported refined products.

“So, price will continue to be a big issue as long as we rely on
importation.”

The House of Representatives is unhappy over the lingering
scarcity of petrol in the country and has asked the Executive to
submit a N800bn supplementary budget to the National Assembly to
offset the debts allegedly owed fuel marketers.

The House Committee on Petroleum Resources (Downstream) stated
in Abuja on Sunday that if offsetting the debts would end the
scarcity, it was the right step to take by the Federal
Government.

The Chairman of the committee, Mr. Joseph Akinlaja, said the
House had come to the conclusion that the Nigerian National
Petroleum Corporation could not handle the importation of petrol
alone and successfully end the current scarcity.

Akinlaja noted that with the country’s four refineries producing
little or nothing to augment the importation by the NNPC, the
scarcity would continue because people would also continue to
exploit loopholes in the distribution chain.

He said reports at the disposal of the committee suggested that
the Independent Petroleum Marketers Association, Depot and
Petroleum Products Marketers Association and the Major Oil
Marketers Association of Nigeria were collectively owed N800bn by
the government for previous importation.

He added that as a result of the mounting debts, IPMAN, DAPMAN
and MOMAN stopped importing products, leaving the NNPC alone to
handle the challenge.

Akinlaja also stated that amid the scarcity, the fixing of the
pump price of N145 at a time the government itself had admitted
that the landing cost of petrol was N171, did not help matters.

He said, “This House has passed several resolutions on fuel
scarcity. We have said on countless occasions that our four
refineries must work at full capacity. We have said that if it is
N145 per litre, enforcement agencies must be able to enforce the
price.

“Now, IPMAN, DAPMAN and MOMAN, they said government is owing
them N800bn; they are no longer importing. Let the government bring
N800bn supplementary budget, we will consider it for this problem
to be over.

“Are we going for full deregulation? Let the government come out
fully to say they want to deregulate. The House is ready to oblige
them on any of these issues to end the scarcity.”

Akinlaja also said another factor to be considered was the
rising price of crude oil, which must naturally affect the pump
prices of petroleum products because Nigeria was an importer of
fuel.

He added, “The way it is, if crude oil price is going up, that
is good for us as a country, because we are making more money. But,
the other side of it is that we also have to pay more for the
imported refined products.

“So, price will continue to be a big issue as long as we rely on
importation.”