Hike in Crude Oil Price: Marketers Shun Petrol Import

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emmanuel-ibe-kachikwuPetroleum marketers have told the Federal Government  that they would be abdicating their role of importing  petroleum products.

 

At the meeting they had with the Minister of State for Petroleum , Dr Ibe Kachikwu  yesterday in Abuja , they hinged  their decision on the rising price of crude oil which has culminated in the increase of the price of the  Premium Motor Spirit (PMS) otherwise known as petrol.

 

Although the Nigerian National Petroleum Corporation (NNPC) is supposed to supply 50% of the products to compliment the marketers in products importation.

 

The marketers stopped importing the product, making NNPC the sole importer since the removal of Petrol Support Fund (PSF) also known as subsidy and increase of pump price to a maximum of N145 per liter.

 

But a source who was in the minister’s meeting in Abuja with the various stakeholders in the petroleum products distribution chain, said that “We have already told them that it is only NNPC that will be able to import the PMS.  The marketers cannot import the PMS because of the cost of the crude oil.

 

“This has also caused the price of the PMS to increase. Thus, if the marketers import it at the rate at which they are selling it now, automatically they cannot sell it at N145 per litre.”

 

According to the source,  Kachikwu who chaired the meeting warned the stakeholders not to leak the information to press before he would brief President Muhammadu Buhari.

 

The Federal Government, it was learnt, resolved to supply products directly to the independent marketers to remove the middlemen in the distribution chain and reduce the cost of the petrol.

 

Owing to the decision, the Federal Government has removed the intermediary the Depot and Petroleum Products Marketers Association (DAPPMA), from who the independent marketers were getting the fuel.

 

One of the fundamental decision that the meeting arrived at was that there will be no increase in the price of the petrol.

 

The Nation learnt that the minister raised a committee to look into the Premium Motor Spirit (PMS) scarcity that crippled transportation in the country in December last year.

 

The source said that : “The discussion is how to make the fuel available nationwide.

 

The have formed a committee from today’s meeting to look into how to solve this fuel problem.

 

“They told us that instead of a triple arrangement, they will be giving independent marketers their products directly. This is to enable us get our product direct and sell at the pump price. This is instead of passing it through DAPPMA to IPMAN.