The Major Oil Marketers Association of Nigeria (MOMAN) has urged the Federal Government of Nigeria (FGN) to focus more on effective and sustainable palliatives for Nigerians to ease their hardship.
Mr Olumide Adeosun, the Chairman of MOMAN, advised during an online interactive workshop session with journalists in Lagos.
Adeosun said that effective and sustainable implementation of the gains from subsidy removal remains paramount for stability.
He argued that in the spirit of transparency, MOMAN advocated for federal, state, and local governments, as well as employers of labour to implement palliative measures.
According to him, this is to support the less privileged individuals in the society, currently facing hardships, adding that it was essential that rapidly executed palliative measures receive wide publicity to alleviate the already agitated public sentiments.
“At MOMAN, we have always anticipated that the removal of subsidies and the stabilization of the downstream market would be a gradual process.
“This process necessitates operators and regulators to engage the public transparently, earn public trust, and foster fair competition that ensures full value for customers at the fuel pumps.
“We commend the authorities for their urgent efforts in opening the market, allowing various players to import petroleum products into the country.
“This market liberalization and the commitment to a level playing field should enhance operators’ efficiency, enabling them to offer competitive pricing choices to the public”, Adeosun stated.
He further argued that some operators have successfully imported petrol into the country, marking the first practical step toward a liberalized market.
While adding that the major challenges still lie in accessing foreign exchange for imports and ensuring a level playing field regarding pump prices, the MOMAN boss suggested, “If marketers are undertaking the financial risk of importing petrol, measures must be in place, in line with the Petroleum Industry Act, to ensure that no one player has an unfair advantage”.
Adeosun advised that these gains should be invested in the promised palliatives, including subsidized transportation, as well as social investment programmes for healthcare, education, and infrastructure development (such as roads, railways, and power).
He said that MOMAN urges that these initiatives be rolled out in a visible, transparent, and timely manner.
The chairman reiterated the association’s support for the policy of deregulation in the petroleum industry.
In his words: "We also acknowledge the challenges faced by the Nigerian public and extend our deepest empathy to all citizens during this time.
“The international price of crude oil and the exchange rate constitute the largest components of the cost build-up for Premium Motor Spirit (PMS), accounting for over 80%.
"The remaining 20% includes statutory dues, distribution costs, and margins.
“Deregulation promises a transparent and level playing field where cost-reflective prices are evident at fuel stations.
“It follows, therefore, that in a liberalized market, the pump price of PMS should accurately reflect the current economic realities”. he said.
Adeosun posited that in recent months, the price of petrol has remained relatively stable, with a further position that on May 30, Platts reported a price of $827 per metric ton (MT), and on July 14, it was $859.25 per MT.
"However, there has been a significant increase in the foreign exchange rate. We can infer from our calculations in May that the Nigerian National Petroleum Company Limited (NNPCL) determined its pump price using an exchange rate of about N630 to the dollar.
“While banks reported an exchange rate of approximately N650 on the Investors and Exporters (I&E) window as of today, the liquid exchange rate is close to N825 to the dollar.
"This devaluation added N100, to the cost of importing a single litre of petrol into the country. Consequently, an increase in the pump prices of petrol should be expected”, he posited.
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