Petroleum product marketers under the aegis of Major Oil Marketers Association of Nigeria have warned of a looming scarcity of fuel following the inability of the Federal Government to pay the subsidy arrears for the importation of Premium Motor Spirit.
The marketers warned that if the situation was not resolved on time, it could lead to another round of fuel scarcity in the country.
MOMAN said in a statement on Thursday that the aim of the Petroleum Subsidy Fund was to ensure the reimbursement of the marketers of agreed and verifiable costs of delivery of PMS to the consumers in excess of the market price of the product.
According to it, the scheme also ensures the repayment of any excess of the market price over the costs incurred by the marketers whenever this occurs (over recovery).
In a letter addressed to the Minister of Finance, Dr. Ngozi Okonjo-Iweala, the association, through its Executive Secretary, Mr. Thomas Olawore, stated that despite previous assurances from the government to reimburse the marketers for under recovery as verified by the Petroleum Products Pricing Regulatory Agency, it had failed to honour the agreement.