Petrol queues may soon reappear across the country

 

By Adewale Sanyaolu
Petrol queues may soon reappear across the country as 70 per cent of the oil marketers have suspended fuel importation over the inability of the Federal Government to settle about N291 billion subsidy arrears.
The development may have been responsible for the pockets of fuel queues that resurfaced in major parts of Lagos two weeks ago.
The latest move to suspend fuel imports was disclosed by the former Minister of Interior and Managing Director of Integrated Oil and Gas Limited, Mr. Emmanuel Iheanacho, at the opening of the 2015 Oil Trading and Logistics (OTL Africa) Downstream Expo in Lagos yesterday.
The Integrated Oil boss regretted that the inability of government to settle the subsidy claims when due leads to distortion in business plan, thus fuelling a regime of apathy and uncertainty.
He said despite an arrangement that subsidy would be settled within 45 days, payment lingered for as long as six months, a situation that has led to cut in credit line usually extended to importers by financial institutions.
Under the current situation, he said fuel scarcity would be a recurring decimal as long as government fails to meet the payment timeline of 45 days.
As a way out of the doldrum, the former minister canvassed deregulation of the downstream sector, for investors to see a profit incentive, to encourage massive investment.
“The subsidy we currently maintain in this country is for those who can afford it. Let government go ahead and remove the subsidy. There is a need to restructure the downstream sector,” he advised.
Recall that the Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore, had in June raised the alarm over the inability of the Federal Government to offset about N291 billion subsidy claims.
But the Nigerian National Petroleum Corporation (NNPC), as part of measures to douse the tension occasioned by non-payment of subsidy claims, had two weeks ago assured that it would explore new financing mechanisms to offset outstanding debts on subsidy claims, which the Federal Government owes petroleum marketers in the country.
Its Managing Director, Mr. Emmanuel Kachikwu, had said this during a meeting with MOMAN and the Depot and Petroleum Products Association (DAPPMA), explaining that these are parts of the extant measures it was taking to ensure that supply of petroleum products in the country is sustained even into the forthcoming yuletide.
He equally promised to, in the interim, arrange a meeting with the relevant creditors (bankers) to ease off pressure on marketers and extend the credit lines.
The NNPC boss noted that several financing mechanisms were being explored to offset the commitment to oil marketers, hinting at the possibility of exploring a monthly payment option.
“In future, we may explore some creative means to prevent backlogs,” he said.
Source: Sun News

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