•Tasks FG on local refining
•Invests over $17 million on cargo of PMS
To ensure sustainability in the downstream sector of the oil and gas industry, Emadeb Energy Service Ltd., a depot owner and one of the marketers licensed to import fuel, has taken delivery of 27 million litres at its depot.
Its Chief Executive Officer (CEO), Mr Debo Olujimi, disclosed this during the inaugural ceremony at its Ijegun Satellite Depot in Lagos.
According to him, this will boost product distribution in the country.
Olujimi said that the 27 million litre cargo cost over $17 million due to foreign exchange rates in the international market.
Emadeb is one of the first marketers to import petrol after subsidy removal by President Bola Tinubu on May 29.
Olujimi, who explained that 27 million little of petrol was imported to support what the Nigerian National Petroleum Company Ltd. (NNPCL) had been importing for the past eight years, as sole importer, added, “Now that private companies have been granted licences to import petrol, this is the way forward.
“It is a known fact that the increase in the price of petrol has been a huge pressure on Nigerians, which we all understand.
“The only way to address the ongoing challenges is for the government to encourage local refining”, he said.
The marketer further maintained that “Having local refineries is the only way forward because foreign exchange determines the price of petrol.
“As of yesterday, the dollar was at N834. The government should assist marketers to access dollars on a single CBN E&l window pending when local refineries will be able to work.
“This will be sustainable so that all marketing companies can pledge on how to import petrol into the country”.
The Emadeb boss commended President Tinubu for deregulating the downstream sector, adding that the company looks forward to sustainable development in the oil and gas sector.
“NNPCL has been the sole supplier, and we decided to import to cushion supply.
“We are a responsible company, and we know what Nigerians are passing through. So, we will not inflate the price or engage in profiteering of the product because we are God-fearing people.
“We urge the government to help to find a window where forex is resolved to have a fixed market rate for importation of fuel”, he posited.
Mr Ahmed Farouk, the Authority Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory (NMDPRA), commended Emadeb’s bold step toward importing petrol despite the fluctuation in foreign exchange rate.
Farouk, who was represented by Mr Sadiq Bashir, Executive Director, Corporation Services and Administration of NMDPRA, revealed that the company had made significant progress geared toward effective product distribution.
While insisting that deregulation was not about pricing but the opening of the market, Bashir stated, “We, at NMDPRA, will also ensure quality supply of petrol and quality in the product.
“Prices change and market forces also determine the market. Petroleum price is denominated in dollars and the product is bought in foreign exchange. The prices are benchmarked with the international price."
Mr Olawale Afolabi, the Secretary General of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), on his part, argued that deregulation had helped in opening the market, just as he insisted that the significance was that Emadeb had taken the bull by the horn to bring in the product against NNPCL, who used to be the sole importer.
For Afolabi, the most important part is that deregulation should be based on local production.
“The huge price increase in petrol is affecting Nigerians, the international market cannot be determined by the government," Afolabi suggested.
He urged investors to come and invest in refining so that Nigeria can have local refineries.
Mr Mike Osatuyi, the Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), commended Emadeb for commencing importation under the post-subsidy removal regime.
Osatuyi said: “We laud the courage, despite all the prevailing challenges. The era of monopoly of products has ended.
“The process will be more transparent than that of the NNPCL, where money is paid and products are not allocated for five months.
“I urge the government to quicken the palliative for Nigerians to have relief.
“Government should use the money saved from subsidies and forex to do something reasonable for Nigerians.
“Price will be competitive because the cheapest rate as of yesterday was N565”.
Mr Gabriel Ogbechie, Managing Director, Rainoil Ltd., said Emadeb has set the pace in the importation process.
“Deregulation is workable and the way to go. There are so many challenges in the downstream sector, including forex instability, which moved to N835 to a dollar.
“There are huge fluctuations in the system, but deregulation is the best way to go.
“The process will be competitive under deregulation if the prices drop, petrol will also drop,” Ogbechie said.
The marketer opined that the floating exchange rate was the right thing to do because the huge disparities between the official rate and black market rates were not sustainable.
He urged the government to provide liquidity to the market to ease importation.
“If the government does not provide liquidity, this fluctuation will continue”, the marker added.
The inauguration of the first petrol cargo by Emedab Energy witnessed stakeholders from the oil and gas industry, bankers and investors.
All rights reserved. This material and other digital volumes on this website, may not be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without prior express written permission from THE NEWS ACCELERATOR NETWORK.
For advert placement, please contact thenewsacceleratornetwork@gmail.com or 08033599492.
Post a Comment