Major downstream marketers under the umbrella of the Major Energies Marketers Association of Nigeria, (MEMAN), have raised alarm that the country may face more challenges in the petroleum products distribution and supply chain, going by the current foreign exchange market intricacies.
The Executive Secretary of the Association, Clement Isong, made this known at a media forum organised by the association on Thursday, in Lagos.
Isong lamented that the market and Nigerians will bear the final brunt of Government policy that allows Nigeria Ports Authority (NPA ) and the Nigerian Maritime Administration and Safety Agency (NIMASA) collect charges in dollars.
He further noted that the complexities of the forex market uncertainty have stopped members from embarking on the importation of Premium Motor Spirit, (PMS), otherwise known as petrol.
He said that it was not easy to put together a correct mathematical calculation of the products landing cost to further determine the appropriate pump price.
The Executive Secretary, while sharing his members position on the present industry value chain conundrum said their investment was not fully protected with dollarisation of certain charges.
According to him, The market and consumers are not immune to Government policy that allows Nigeria Ports Authority, (NPA), and the Nigerian Maritime Administration and Safety Agency, (NIMASA), continuous charges in dollars, s.
He also informed that though marketers receive products from Nigerian National Petroleum Company Limited (NNPCL) Trading, ship-to-ship products off-load is transacted in dollars, all of which he said pushes up the cost of the pump price. We are presently concerned about sustainability, efficiencies, and affordability of energy for Nigerians and we are encouraging the shift to energy transition specifically into gas space, the ES stated.
Giving further analysis, Isong said though the Federal Government has been faithful in its avowed intervention process since it exited the petrol subsidy regime, the dollarisation policy is weakening the industry and discouraging investment.
He placed the blame mostly on fluctuating dollar movement and the unpredictability of the rate.
For instance, he said marketers pay Government Agencies (NPA, NIMASA, etc.) about $10 per metric ton and given the current exchange rate would translate to a higher pump price.
