Home / News / Local / Fuel scarcity: Major marketers lament NASS’s delay in approving subsidy claims; to stop importation of products

Fuel scarcity: Major marketers lament NASS’s delay in approving subsidy claims; to stop importation of products

Fuel Scarcity
Fuel Scarcity

The lingering fuel scarcity threatens to worsen soon as the Major Oil Marketers Association of Nigeria (MOMAN), Thursday, said the delay in approving subsidy claims by the National Assembly may halt further distribution of  fuel across the country, just as the body stopped importation of the products.

Executive Secretary, MOMAN, Mr Obafemi Olawore, who gave this warning in an exclusive interview with the News Agency of Nigeria (NAN) in Lagos, however, appealed to National Assembly to promptly approve the N466 billion supplementary budget which covers the subsidy claims, ‘in order to save the country from persistence fuel scarcity.’

Federal Government, penultimate week, approved the payment of N413 billion to oil marketers being part of their outstanding payments for subsidy claims following brewing fuel supply crisis over non-payment of the subsidy claims, leading to queues in petrol filling stations in some major cities.

Olawore said that non-approval of the subsidy payment by National Assembly could hinder petrol supply during the yuletide season, adding that marketers had exploited all avenues to ensure speedy approval of the money to avoid total shut down of operations.

“We hereby appeal to the Senate and House of Representatives to as a matter of urgency pass promptly the supplementary budget as the volume of products in the system has dwindled to almost zero.

“It is obvious that as Christmas and New Year draw closer and with the volume of traffic normally experienced during the period more fuel will be consumed thereby increasing demand.

“The private sector that imported about 60 per cent of national consumption is now incapacitated due to lack of funds, lack of support from banks to open letters of credit and lack of foreign exchange to liquidate matured letters of credit,’’ he said.

Olawore said that urgent passage of the pending marketers’ subsidy claims by the National through the supplementary budget would arrest the incessant fuel scarcity in the country.

He said that about N270 billion is owed the marketers by Federal Government on subsidy, foreign exchange and interest, adding that N413 billion was subsidy debt owed from August 2014 to September 2015, while an additional N 256 billion on foreign exchange and accrued interest still pending.

“In order to put an end to the current scarcity immediately and to avoid confusion and chaos during the upcoming season it is imperative that the National Assembly treat as a matter of National urgency the supplementary budget presented to it by the Presidency.

“Payment of the outstanding subsidy arrears will give marketers the impetus to import and assist PPMC in making product available nationwide for a hitch free yuletide season. Immediate approval of the supplementary budget would enable government to pay outstanding arrears that have accrued from August 2014 to September 2015.

“We wish to remind our distinguished Senators and members of the House of Representatives that the lead time to open Form M/ Letters of Credit, book cargoes, sail vessels to arrive Nigeria plus discharge time at the jetties would take about twenty one (21) days at the earliest,’’ Olawore warned.

He said that the marketers are ‘mindful of the importance of the National Assembly and knowing distinguished Senators and House of Representative members for their love for the citizenry.’

The scribe said that if money is approved on time, the marketers ‘can go to spot market to buy products.’

About Global Patriot Staff

Check Also

Tinubu congratulates Cyril Ramaphosa on re-election as South Africa’s President  

President Bola Tinubu has extended warm congratulations to President Cyril Ramaphosa of South Africa, on …

Leave a Reply

Your email address will not be published. Required fields are marked *