Price adjustment will end fuel shortage – Marketers

The Major Oil Marketers Association of Nigeria, MOMAN, has called for the start of a gradual deregulation of the downstream oil and gas sector to reflect the current price of petroleum products.

Traders noted that with escalating energy costs occasioned by the Russian-Ukrainian conflict, no one country or authority has control over how the cost of energy can be set.

They insisted that the regulated N165 pump price for Premium Motor Spirit (PMS), also known as petrol, is no longer realistic.

Speaking in a virtual meeting with the Federal Competition and Consumer Protection Commission [FCCPC]and the media yesterday, MOMAN Chairman Olumide Adeosun said the impact of the conflict is having an immense effect on businesses in Nigeria, which is largely a consumer country with idle refining capacity.

Regarding the diesel price disparity, Adeosun said the cost of diesel is actually cheaper in Nigeria.

Comparing Nigeria with Kenya, Zambia and others, he said that although the cost of diesel has reached up to 800 naira per litre, it is still cheaper compared to what he sells in d ‘other countries.
Adeosun, said the price of diesel would have been lower today, and attributed the rise to the inaccessibility of currencies at the official rate.

He said traders were sourcing foreign exchange from the parallel market at 620 naira per dollar, but even at this price of diesel in Nigeria it is around $1.29 per liter compared to $1.34 per liter in Nigeria. Kenya.

He said as a country, Nigeria should start developing initiatives that will help reduce energy consumption, especially as the government cannot bear the escalating subsidy bills.

According to him, this is due to other countries adopting measures such as export border closures, which indirectly excludes Nigeria from the market, while others pass the cost on to consumers.

“Our grant bill is outrageous and we have had an extended grant scheme with no savings for bad weather which has reduced our ability to cope with the impact.

“We want progressive deregulation. The cost of landing the product, the high cost of diesel to link the products for about 500 kilometers or to run our stations is enormous, and all of this is on top of the cost of doing business and cannot guarantee N165 a price d at the pump approved per litre.

“The other option is for businesses to close but I think it’s better to have a gradual price adjustment to support businesses or completely cripple the economy,” he said.
Ikem Isiekwena, Consultant to the FCCPC, in his remarks, reaffirmed the Commission’s commitment to ensuring the protection of consumers of petroleum products, in accordance with the FCCPA.

Isiekwena, the commission said, does not have adequate information on diesel price differentials as it is sold in other countries.

He said if his monitoring found such a disparity, it would bind traders, but noted the product had been deregulated under the law. He also said the

Commission, has made contact with the relevant agencies in the energy sector, including the electricity industry, where it has stated that it is determined to punish offenders, in particular operators who do not comply without delay to the rules and regulations in force in the electricity industry.

He observed that over the years, non-compliance with the Nigerian Electricity Regulatory Commission (NERC) ordinances, codes, regulations and performance standards remains the bane of the industry.

The Commission has urged DISCOS to demonstrate a greater commitment to complying with NERC regulations.

According to the FCCPC, the decision to punish the violators has become inevitable given growing consumer complaints about estimated bills, poor metering connections and illegal disconnections, among others, which have prevented them from enjoying a regular power supply. .

Eleanor C. William