5 Reasons Oil Marketers Believe FG Is Encouraging Scarcity

Crude-Oil-Barrels-OPEC

PRIVATE and independent oil marketers have accused the Petroleum Products Pricing Regulatory Agency, PPPRA, of encouraging a monopolistic system in the downstream petroleum sector run by the Nigerian National Petroleum Corporation, NNPC, and major marketers. They said this status quo is the reason behind scarcity of petroleum products. INFORMATION NIGERIA brings you 5 reasons why they think so…

1. NNPC’s monopoly of the household kerosene

2. The lopsided  import permit; they gave 22% allocation to private operators and 78% to NNPC. But they give forex to NNPC at official rate of N197 – $1, and ask others to go source for forex independently at the open market at N300 – $1

3. Operators who maintain foreign accounts cannot use their dollar for transaction. If they have forex abroad, they still need CBN permit to use it to buy product, and this permit takes up to one month before they get the approval.

4. Suppliers are now shunning marketers except their transactions are backed by dollar cash.

5. PPPRA’s introduction from January 1st of a new pricing template of N86.50/litre for premium motor spirit, PMS, also called petrol at which both the NNPC and the private operators would sell at.