Deregulation on a faulty start, oil marketers allege
By Adesola Adetiba
PETROLEUM product marketers, under the agies of Major Oil Marketing Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers of Nigeria (DAPPMA) and Independent Petroleum Marketers Association of Nigeria (IPMAN), have decried their non-inclusion in the importation of fuel into the country.
Contrary to standard practice, the marketers alleged that the Presidency and the Nigerian National Petroleum Corporation (NNPC) had deliberately shelved them from the importation of PMS and DPK into the country by the refusal of the Petroleum Product Pricing Regulatory Agency (PPPRA) to give them approval to import for fourth quarter of the year.
This, according to the marketers, was capable of causing scarcity, noting that NNPC does not have the capacity to solely supply and distribute petroleum products across the length and breadth of the country in the post-deregulation era.
But NNPC spokesperson, Dr. Levi Ajuonuma, said deregulation allows every participant in the downstream sector to bring products into the country and that nobody has been excluded in this process.
Ajuonuma said NNPC has decided to import all its products and distribute same through various channels it has established through partnership, adding that the corporation currently has enough fuel that will meet the demand of Nigerians throughout this year including the festive periods of Christmas.
Investigations however revealed that the PPPRA is reluctant to give further approvals to import under the Federal Government subsidy scheme due to the inability of the government to pay the outstanding debts owed the marketers under the PSF scheme.
A source also informed us that the Federal Government has directed the NNPC to make arrangements to cover 100 per cent the estimated PMS and DPK consumption in the country between now and end of the year to avert any scarcity. The source said that this directive became necessary due to the perceived inability/ reluctance of the marketers to continue imports under the PSF scheme.
Marketers have before now complained that banks were becoming reluctant to finance their PMS and DPK importation due to the failure of the PPPRA to pay the subsidy due on earlier imports made between first and second quarter of the year. This, they claimed is largely responsible for the fact that the downstream oil sector is the second highest debtor to the banks.
Marketers, who spoke with The Guardian on the issue are of the opinion that the position of the Federal Government on this matter is unfair. They wonder where the NNPC will get money from to pay for all the cargoes being booked now and ask the question that if the government has the ability to pay for NNPC cargoes, why have they not paid the subsidy due to marketers? They have therefore alleged that the PPPRA is deliberately creating a situation which will make the NNPC the sole supplier of PMS and DPK into the country at the advent of deregulation. This creates an environment where corruption and unwholesome practices will thrive.
The NNPC has however denied all claims of corruption, stating that it is only carrying out the mandate giving to it by the Federal Government. NNPC stated that their tender process for the supply of product is not only competitive, but also very transparent.
