Oil marketers urge Senate to approve fuel subsidy appropriation today to avert crisis

The Senate is expected to today approve the N413 billion for fuel subsidy sent to it by President Muhammadu Buhari.

Approving the money would help cushion the pains associated with the current fuel scarcity that has adversely affected the economy, causing many motorists to sleep at filling stations.

Meanwhile, NIPCO, an indigenous oil company, which has just taken delivery of  37 million litres of petrol has warned marketers who engage in unwholesome practices including profiteering and diverting fuel, to desist forthwith.

Industry watchers say if the legislature fails to approve the release of subsidy money, the days ahead may be even tougher for Nigerians, as activities around the Christmas holidays may be drastically slowed down by more severe  fuel shortages. 

They further explain that marketers need a minimum of 21 days to make arrangement for import, adding that petroleum volumes at  depots across the country are getting perilously low.

They add that despite the sum of N256 billion, which is the foreign exchange and interest component of the subsidy, Nigeria has a grace of 21 days within which to make arrangement for December importation to avoid a fuel crisis at Christmas.

Olufemi Olawore, executive secretary, Major Oil marketers Association of Nigeria  (MOMAN), who corroborated the views of the stakeholders, said the  private sector which usually  imports about 60 percent of the national consumption, is now incapacitated due to lack of  funds, lack of support from banks to open letters of credit as well as lack of foreign exchange to liquidate matured letters of credit.

Olawore said: “We wish to remind the senators and House of Representative members 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 at least about 21 days at the earliest.”

NIPCO said the warning was  the fallout of the unscrupulous trading of   loading tickets in and around the depots, rather than taking the products to  designated stations.

“Management hereby wishes to warn such marketers to desist from this unpatriotic act. For the avoidance of doubt, the Management shall not hesitate to handover any marketer found trading its ticket to the Third Party, to the law enforcement agents who have also been informed about this development”, it said.

Olusola Bello