Fuel queues may return nationwide, as NIMASA, NPA insist on Dollar for levies

…Discussion on suspension of Dollar levies ongoing — Adeosun

…As MOMAN begins consultation for clarity on subsidy suspension

By Uthman Salami, Abimbola Abatta and Akande Seth

Long queues may continue to greet major cities across the country as Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigerian Port Authority (NPA) continue to charge marketers in Dollars as against Naira for services at Depots.

Nigerian NewsDirect investigation revealed that the recent queues witnessed in the country are not unconnected to the lack of implementations of the agreement to suspend Dollar charges on services being rendered at the Port by the duo of NIMASA and NPA.

The move to suspend the payment of levies in Dollars by stakeholders in the industry came on the heels of complaints made by oil marketers over the marginal cost incurred as a result of the payments, thus, the move was made to prevent petrol scarcity and maintain stability in the downstream sector of the petroleum industry.

Under the arrangement adopted at the stakeholders meeting in Lagos, November, 2021, they agreed to remove all hindrances, capable of stalling supply nationwide.

Last week, residents of Abuja were tossed into fuel shortage which resulted into struggle and long queue that greeted the seat of power to purchase fuel at different filling stations across the city, weeks after similar queues were witnessed across the country mid-November, 2021.

While speaking to Nigerian NewsDirect in an exclusive interview after a subsidy workshop with members of the press yesterday, the Chairman of Major Oil Marketers Association of Nigerian (MOMAN), Mr. Olumide Adeosun revealed that the discussion to suspend the collection of levies in Dollars at Depots is still ongoing, while explaining that the recent queues may not be unconnected to transport system.

He said the Federal Government must do more than organisational changes, stressing that the transport industry has been on a decline since last year.

He said, “I am ninety-nine per cent certain that transport has a lot to do with the long queue at filling stations. Truthfully, the transport situation has been declining since last year.

“Concerning the queues, there is small level of supply stock because it takes so long to get there and come back. The impact is twice the destination of what it use to be.  Some trucks spend ten days on the road and there are other many trucks in Nigeria. That is the fundamental problem.”

Meanwhile, when our correspondents reached out to the SA Media to the Minister for  Petroleum, Hon. Julius Bokoro, no response was offered as at the time of filling this report as he promised to get back.

Also, efforts to get the Ministry of Transport reactions to the recent development proved abortive.

MOMAN begins consultation for clarity on Subsidy suspension

While speaking on the recent suspension of subsidy, Mr. Adeosun said, “We are here and we have gotten to where we are today without really being carried along, and we are saying that we still want to do something in the future. It’s important that we are carried along. Since August 27, six months have elapsed yet not a single thing has been done on the PIA despite announcements in the past by the government that the working groups have been set up.

“So we have seen the organisational changes being made. They have done a great job on the NMDPRA.”

On what the members are doing to put pressure on government,  he said, “We have demanded an audience with the authority and again put our thoughts on the table. The thing is that we are not asking for anything different.  It is the same thing we are asking for.  We are opening up discussions and forcing discussions, and we are hoping that the outcome will be different. It is really about the collaboration and consultation.”

According to a Press Release by the Association, “The Major Oil Association of Nigeria has been approached by members of the press seeking its reaction with respect to the suspension of subsidy removal.

“The members of the Association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders to understand exactly how this decision would impact the other provision in the Petroleum industry Act as well as market operations.

“Recall, that the reforms contained in PIA are a combination of several decades of engagement with internal and external stakeholders, capturing local and international best practices to encourage investments in the Petroleum downstream sector, optimise costs, ensure transparency, and upgrade industry assets and infrastructure (refineries, depots, pipelines, trucks, and filling stations).

“The decision having been taken to suspend subsidy removal, the direction of our consultation necessarily would be towards understanding and contributing towards what market philosophy and regulations should be in place during the 18-month period to ensure uninterrupted supply, transparency. This will be in line with long-time objectives for the administration and growth of the industry.

“Once clarity has been achieved, we shall a press conference on the issue.”