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Petroleum dealer lauds Buhari on oil industry reforms

* Sells kerosene at N50

By Sebastine Obasi

LAGOS—A petroleum dealer with NIPCO Plc., Mr. Adepoju Kayode, yesterday, commended President Muhammadu Buhari’s ongoing reforms in the oil industry, which he said will bring stability to the economy.


Kayode made the commendation at the flag-off of the N50 per litre pilot scheme of the NIPCO filling station at Fadeyi, Lagos.

He said: “The NIPCO Fadeyi station has just started a pilot scheme of selling kerosene at N50. Ideally, all NIPCO stations should be selling at N50. Major marketers were not selling kerosene because of the stop-gap they encountered at the refineries.

“By the time they bribe government officials, the landing cost would amount to N90, but with the initiative of President Buhari’s government to give major marketers products on 10-day credit, it will eliminate the bureaucratic bottlenecks associated with pro-forma invoice, PFI.”
Kayode deplored the situation where it was cumbersome to access credit facilities for the importation of petroleum products.

“One of the conditions of getting PFI, is ownership of depot and then if you have connection with government agencies, you get the allocation to bring in kerosene. Even if the government price is N20, by the time you bribe the officials and pay for vessels, the landing price will get to N90. That is why it has not been attractive to sell at N50,” he said.

Reacting to the allegation of kerosene diversion for aviation purposes, he said that the discrepancies were due to leakages in the system. According to him, the normalcy being experienced in the sector now is due to President Buhari’s initiative.

“All the loopholes are being plugged. The bribery that used to go on at the refineries has been eliminated. The Federal Government is now bringing in the products from source to the major marketers. That is why the N50 price per litre is feasible.

“We will not sell beyond N50, after today, as other dealers used to do. We have our integrity at stake. We will not do anything to tarnish our corporate image. NIPCO is the highest selling filling station on Ikorodu road. In as much as we get products, we will continue to sell at N50. The purpose of the initiative is to cut off the cartel that has held the sector by the jugular.

“This is also a way of eliminating the issue of subsidy. If our refineries are producing at maximum capacity, there will be no need for subsidy. Kerosene should be affordable, because it is mostly used by the poor in the society.

“The government should continue with the initiative of giving credit to marketers to eradicate the old order of using PFI. If the market is flooded with kerosene, the price will be competitive and affordable,” he added.

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