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Business News

Oil marketers give conditions to resume fuel importation

Oil marketers in the country have outlined conditions that will facilitate their involvement in fuel importation.

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Petrol importation gulps N1.13 trillion in 2019, as Nigeria fails another deadline 

Oil marketers in the country have outlined conditions that would facilitate their involvement in fuel importation. Operating under the aegis of the Major Oil Marketers Association of Nigeria (MOMAN), the marketers have disclosed that having access to dollar at the rate of N306 per dollar instead of the N360 per dollar would aid the resumption of the importation of Premium Motor Spirit (Petrol).

Mr Clement Isong, the Executive Secretary/Chief Executive Officer of MOMAN, during a press briefing in Lagos, explained that getting the foreign exchange (forex) at N306 per dollar will lead to an expected open market price of N141 per litre for Premium Motor Spirit.

FG battles 6 oil firms for failure to remit N20 trillion , ExxonMobil, Shell, Chevron delay $58.4 billion oil and gas investment in Nigeria, Crude Oil: Nigeria’s oil production slips for the third consecutive month , Tax reform, policy uncertainty to cause oil drop as foreign firms look outside Nigeria 

In his statement, Mr. Isong said, “We don’t have forex at N306 per dollar, Forex at N360 per dollar, which is what we have access to, puts the product into tank at N142. If you then add the distribution cost, the pump price will be N164.’’

In the same vein, the marketers pointed out that there was an urgent need for the Federal Government through its agency, the Petroleum Pricing Products Regulatory Agency (PPPRA), to increase the margins on petrol in order to encourage more investments into the downstream sector of the oil industry.

[READ MORE: Oil marketers demand exemption from N50 PoS charge)

According to the petrol pricing template of the PPPRA, the margins for retailers and dealers are N6 and N2.36 per litre respectively whereas that of transporters is N3.36.

The Chairman of MOMAN, Adetunji Oyetunji during the event, pointed out the stand of the marketers.

Oyetunji said, “We call on the government to seize the opportunity of these lower oil prices to either give us an immediate margin increase or remove subsidy because today, the landing cost of petrol is much lower than the approved pump price.

‘’So, it gives a unique opportunity to be able to get out of this subsidy business. It happened like that in 2016 when oil price dropped significantly but we didn’t seize that opportunity’’.

It could be recalled that since 2017, the Nigerian National Petroleum Corporation (NNPC) has been the sole importer of petrol into the country after major and independent oil marketers stopped the importation of the commodity due to crude oil price fluctuations, scarcity of foreign exchange, non-settlement of subsidy debt since 2015 and some other challenges.

[READ ALSO: Oil marketers, PENGASSAN call for subsidy removal)

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) had criticized the idea of the Federal Government being the sole importer of petrol as this has negatively impacted the industry.

The oil industry stakeholders and financial experts have all been calling for the complete deregulation of the sector especially with petrol as this will help attract more investments in the downstream sector and stop the huge funds which are spent on subsidy annually. The Federal Government in recent times has referred to the subsidy provision for petrol as under-recovery.

Jaiz bank

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Spotlight Stories

Tip Jar, Twitter’s new giveaway feature that lets users send money to you

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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US Elections: Twitter, Facebook suspend several news accounts

Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

READ: Facebook is creating an audio chat product similar to Clubhouse

You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

Hotflex

READ: Does YouTube stand a chance against TikTok?

Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

Twitter has tested several features and more will be rolled out soon.

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Business

Customs Apapa Command generates revenue of N65.4 billion in April

This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

What Ibrahim Yusuf is saying

“This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

What you should know

Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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