FG denies fuel price hike plans, provides reasons for fuel queues in Abuja, others

The federal government provided reasons for the marginal fuel queues encountered at gas stations in Abuja and parts of the country.

Indeed, the government denied reports that it was considering raising the price of gasoline at the pump, insisting that the queues had nothing to do with a supposed government plan to increase the price of Premium Motor Spirit (PMS), otherwise known as gasoline.

This was made known by the new chief executive of the Midstream Petroleum Regulatory Authority, Farouk Ahmed, during an interview with State House correspondents after his official presentation to President Muhammadu Buhari at the Presidential Villa in Abuja, according to NAN.

What the CEO of Midstream Petroleum Regulatory Authority says

Ahmed said the queues were caused by the logistics of paying in US dollars by the depository owners, and the issue is being addressed by the relevant authorities.

Ahmed said some of the depot owners were selling gasoline above the ex-depot price because they paid for their logistics, port charges and the like in US dollars, adding that they had to stock up on foreign currency on the parallel market at higher rates.

He explained, “Basically what has happened is that some of the depot owners selling Premium Motor Spirit above the official ex depot price of N148 are selling at N156 or N157.

“The reason is that they pay for their logistics, like shipping and port and Nigerian Maritime Administration and Security (NIMASA) fees in US dollars, and they have to go to market. parallel to get the dollars.

“The differential between the official exchange rate and the parallel market is their reason for adding between N9 and N10.

“But we had a meeting on Tuesday 9 November and the heads of Nigeria Ports Authority and NIMASA as well as other stakeholders were all there and it was decided that the excess capacity vessels of the NNPC would be discussed. with the oil marketing companies and they would charge in Naira.

“NIMASA and the Ports Authority will also revert to their line ministries and receive guidelines to collect their fees in naira rather than US dollars. I believe that with these, there will be no reason for depository owners to increase their price beyond the official sale price of N148. ”

What you should know

Following the implementation of the Petroleum Industry Act (PIA) recently signed by President Muhammadu Buhari, economic experts and actors in the oil and gas sector are calling for the complete deregulation of the sector with the removal of oil subsidies, which have become a depletion. the country’s resources.

However, the federal government has maintained that the removal of oil subsidies will take off in the second quarter of 2022 after concluding negotiations with unions on palliatives for Nigerians.

NNPC group chief executive Mele Kyari assured that the removal of fuel subsidies will be definitively achieved in 2022, as it is now fully supported by law, adding that the price of the product can vary between N320 and N340 per liter.

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