Fuel Subsidy Probe Scares Importers

Umbrella Association of Major Oil Marketers (MOMAN) and the Allied Independent Marketers of Nigeria (IPMAN) have given the indication that the recent shortage in the supply of Premium Motor Spirit (PMS) which has hit the Federal Capital Territory and some other parts of the country will soon be a thing of the past as the Federal Government assures banks of payment of subsidy claims to allay their fears which had affected their business.

The marketers and NNPC had disclosed their readiness to flood the outlets with the product in the next few days if these issues were taken care of.

The Chairman, Senate Committee on Petroleum, Senator Magnus Abe has also chided those who are taking undue advantage of the present situation to hoard petrol, saying, it was uncalled for as there was even no case of scarcity of product but mere hitches in supply due to some problems in the coastal depots.

According to the statement made by the officials of MOMAN and IPMAN during a meeting with NNPC officials led by the Group Managing Director, Austen Oniwon, officials of PPPRA, and Ministry of Finance summoned by the Senate Committee on Petroleum (Down Stream) over the recent emergence of long queues in some parts of the country, the Executive Secretary, Major Oil Marketers (MOMAN), Obafemi Olawora disclosed that the seeming scarcity of the product was partly caused by some delays due to the recent clashes in Lagos which hindered movement of some tankers and mainly due to the fears of the oil importers over uncertainties surrounding the oil importers and the Federal Government.

Mr. Olawora told the senate committee that consequent upon the recent probes, the financial institutions were no longer ready to fund their businesses, making it difficult for most of them to carry on with their allocations.

His words, “small clashes in Lagos prevented some tankers’ movement in Lagos , but now normalcy has returned. The recent shortage in supply is partly as a result of the outcome of the recent inquiries into the subsidy funds. Anytime you live the whole thing to NNPC and PPMC , there’s bound to be problems,. For us to get the credit facility to import, the banks need our assurance on the payment of subsidies. As at today, the confidence is very low, It is a very big challenge and that is why only very few cargoes are coming in on our own.

“We appeal to Ministry of Finance to bring back the confidence by talking to the banks.  On our part, we are bringing in some few cargoes, about 180 kilo tonnes between now and first week of March   based on what we believe, that some payments are to be made. PPMC said they are giving us 15 by 15 vessels to bring to Abuja.”

In his own comment, the Executive Director, IPMAN, Alhaji, Aminu Abdulkadir said  he could not discount the issue of hoarding, that could not be seen as a major cause of this shortage in supply. He accused NNPC of carrying on as if they can serve the entire nation as he insists that “the stock of the NNPC cannot cover the nation.

Abdukadir also raised the issue of a sharp reduction in the number of importers as the profit margin of  N4.60k could not urgur well with some small marketers who may have the rising dollar equivalent of naira to contend with .

The Minister of Finance, Ngozi Okonjo-Iweala represented by the Director General, Budgets, Bright Okogwu on his own reiterated the commitment of the Federal Government to the payment of all due subsidy payments to all genuine importers of fuel as at when due.

Okogwu pointed out that already there was a provision of N888bn in the 2012 reversed budget for the payment of subsidies to fuel importers just as the Permanent Secretary, Ministry of Petroleum, Goni Sheik gave the banks and importers assurances on the policies of the Federal Government.

The GMD, NNPC having pointed out that they had some stocks to serve the country , the stocks may not last for long, hence, the need for an understanding with the marketers (importers) to get back to full scale business.

In his remarks, the Chairman of the Senate Committee on Petroleum (Upstream), Senator Abe reminded the marketers that the purpose of the National Assembly probe was not to discourage importers but to ensure that there were no more sharp practices in the sector.

Senator Abe also announced the constitution of a committee comprising the Senate, NNPC, IPMAN, MOMAN, PPRA, PPMC and other stakeholders with a view to working out a long term measure to ensure that the nation experiences no more long queues in filling stations.

Nneka Amaechi Nnadi, Abuja

Rivers State Commissioner for Budget and Economic Planning, Hon Charles Gogo (right) with Permanent Secretary of the ministry, Sir Promise Njiowhor during the send-forth/award of prize ceremony organised by the ministry, last Friday. Photo: Chris Monyanaga