…Marketers Urges Crude-Naira Supply Policy Sustenance
Yemisi Izuora
Petroleum marketers in Nigeria are worried over what they consider as unpredictable Government policy on the crude-naira supply policy to Dangote refinery.
They are also asking for the policy to be extended to other refineries to reduce tendencies of importation.
The marketers raised the concerns after Dangote refinery served a notice that it has temporarily halted the sale of petroleum products in Naira.
This in the views of marketers would lead to increase in the price of Premium Motor Spirit (PMS) also called petrol.
Spokesperson of the Crude Oil Refiners Association of Nigeria (CORAN) Eche Idoko, expressed disappointment over the situation.
Idoko, said the Association was disappointed when during the recent meeting by government to discuss possible review of the exercise, the association was not given opportunity to send representative.
According to him, the CORAN has made submissions stating the need to extend the offer to other refineries so as to make products affordable and accessible.
He also, said the Association frowns at the continuous importation of petrol into the country given that in-country capacity is enough to serve domestic market.
Also, the national president of Petroleum Product Retail Outlet Owners Association (PETROAN) Billy Gillis-Harry, described the unfolding scenario as unfortunate and capable of distrusting market supply system.
Gillis-Harry, said already the announcement is raising serious concerns among marketers as that would certainly increase prices of petrol which will further exacerbate the suffering of the masses.
He said, that at the end of the six months pilot policy which renewable as envisaged at the inception of the crude-naira initiative, government announced it has not jettisoned the policy but the announcement by Dangote is raising more concerns about the sincerity of government on the issue.
He said, marketers are not in anyway blaming Dangote as he has the right as a business man to adjust his prices to make profit.
In a statement, Dangote said it would now sell refined petrol in dollar until government resumes crude-naira arrangement.
This decision is necessary to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in U.S. dollars, the management noted.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.” the statementadded.
The management also reacted to reports on the internet claiming tthat it is stopping loading due to an incident of ticketing fraud.
The management described this as a malicious falsehood, affirming that its systems are robust and have not had no fraud issues.
It reaffirmed its commitment to serving the Nigerian market efficiently and sustainably, and assured that as soon as it receive an allocation of Naira-denominated crude cargoes from NNPC, it will promptly resume petroleum product sales in Naira.