We’re not aware of petrol price cut – MOMAN

The Major Oil Marketers of Nigeria (MOMAN) has alerted that
it was not aware of the Federal Government’s plans to reduce
the pump price of petrol from N97 to N87.
“Before any price increase, we were always informed before
hand and we were always ready to effect the change
immediately. But this reduction was a gift to the nation. You
don’t open a gift until it is given to you.
Addressing the media in Lagos yesterday, Executive Secretary
of MOMAN, Mr. Obafemi Olawore, emphasized that marketers
were not against reduction in pump price of petrol, but it came
as a surprise to them,adding that it will take a few days to
adjust the whole pumps across the country.
“The Minister of Petroleum has every right to announce price
change without informing anybody. But in this case, we were
not aware that such policy is coming. You can see about 80
per cent complaince in Abuja, all our members will comply in
other parts of the country too. There are over 2000 filling
stations in Lagos alone.
MOMAN has however called on the Federal Government to
take advantage of the falling crude oil price to deregulate the
downstream sub-sector of the oil and gas industry.
Olawore, also urged the government to increase the profit
margin for marketers if regulation of the sector would persist.
He claimed that since 2007, marketers are entitled to N4.60k
per liter as margin while dealers collect N1.75k per litre as
margin.
“Adequate margin is what we expect to afford us to pay
salaried, expand business outlets and able to continue in
business,” he said.
“It is a matter of time before we deploy our engineers to all
stations to adjust the pumps,” he said.
Meanwhile, he explained that the best time for the Federal
Government to deregulate is now. “This is the best time for
government to deregulate. It will be incumbent on marketers
to demonstrate to Nigerians that the price can go up and
down according to market forces.”
Furthermore, the MOMAN boss claimed that the Federal
Government is owing marketers N250billion in arrears for
subsidy claims in 2014.
“We are businessmen importing fuel on behalf of the Federal
Government. The agreement with the government agent,
Petroleum Products Pricing Regulatory Agency (PPPRA), that
says payment will be paid in 45 days should be honoured.
“This includes foreign exchange and interest rates differentials.
Anything short of that means government is liable to pay. The
actual subsidy debt is N155billion while foreign exchange and
interest rates differentials is N95billion totalling N250billion,”
he stated.
He however urged the DPR, PPPRA, Auditors from Finance
Ministry and Marine Inspectors to take physical stock of
remains at the tank farms for proper accountability and
transparency.