Masters Energy Oil & Gas Limited has advocated for increased gas production and availability in the domestic market to encourage both marketing companies and the Nigerian masses to key into the federal government’s Autogas policy.
The Group also urged the federal government to put in place measures aimed at addressing the foreign exchange challenge that is posing a major hiccup in the importation and marketing of petroleum products in the country.
Felix Eribo, Executive Director, Operations, Masters Energy Group, made the submissions during an interview with the press, on the sidelines of the just-concluded 2023 Oil Trading and Logistics (OTL) Africa Downstream Week, held in Lagos.
Eribo said the company was already keying into the Autogas policy, which is more popular with the use of Compressed Natural Gas (CNG) to power vehicles both mass transit buses and private cars.
Read more: Masters Energy breaks ground for $500m gas project
He said Masters Energy is cooperating and collaborating with the government to ensure the success of the Autogas programme and has started establishing its CNG refilling stations across its major filling stations in the country.
Noting that CNG is cheaper than petrol, Eribo, pointed out that the challenge in its adoption was the unavailability of the gas, adding that the factor discourages marketers from setting up CNG refilling plants and also dampens the willingness of vehicle owners to convert their vehicles to CNG-powered.
He said: “The federal government has to ensure that the gas we flare is converted to CNG. When the CNG is available and we can get it, we can then establish the refilling plants in all the stations. Presently, CNG is comparatively cheaper than petrol but the availability is the main issue.
“Today, a lot of people want to use CNG but nobody wants to convert his or her car when there is no CNG to power it. So, the first thing is, CNG should be available before you ask people to convert their vehicles. But in terms of adoption, CNG is in our blueprint already, so we are keying into it.”
He equally urged the federal government to put in place measures aimed at addressing the foreign exchange challenge that is posing a major hiccup in the importation and marketing of petroleum products in the country.
Read more: Subsidy removal: Pressure turns on N250bn autogas fund
Eribo urged the federal government to address the FX constraints in products importation by mandating the Nigerian Ports Authority (NPA), the Nigerian Customs, the Nigerian Maritime Administration and Safety Agency (NIMASA) amongst other agencies to start collecting all import-related charges and fees in naira rather than in dollar.
“In terms of the FX issue, the federal government has a lot to do to manage the FX element in the template. I give you an example: we hire vessels here in Nigeria and most of the vessels are foreign vessels. We have to pay in dollars. But I assume that is outside the government’s purview.
“But why should NPA charge in dollars? Because they charge in dollars, you are not going to get that dollar from the CBN. You are putting more pressure on the dollar and everybody who is dealing in petroleum products will have to pay in dollars to government agencies. And the rate continues to go up.
“If the federal government can mandate NPA to charge in naira, it will achieve two things: one, it will reduce the pressure on naira and it will reduce the landing cost of that PMS or whatever product because you are now paying in naira,” he said. “Then, NIMASA, CABOTAGE, all these are being charged in dollars whereas we are selling the products in naira. So, if we can manage those forex elements within the template, the pressure will come down.”
Despite the challenges around FX and high agency fees which all marketers are grappling with, the Masters Energy Director said the company remains a customer-centric company that feels the plight of the masses and makes its products highly affordable.
Read more:NGA commends FG’s refocus on autogas, supports subsidy removal
“One good thing in the oil and gas business is your capacity and your efficiency. If you are able to manage your cost efficiently, you will be able to compete in the market and make profit and Masters Energy is doing that well”, he added.
According to him, the company’s business model, which is that of “ownership spirit” is what differentiates it from other competitors in the market, noting that all the employees have a sense of belonging and are stakeholders in the business.
“So, we have built a model whereby we see ourselves not just as colleagues but as family. So, we assist each other to succeed in our different assignments in the company. When we succeed, we succeed together. Failure is not in our DNA. So, that’s why all our businesses are thriving”, Eribo stated.
