…Extortion, illegal taxation persist -Investigation

…FG should reduce dues, levies to government agencies – DAPPMAN

By Udeme Akpan, Energy Editor

As Nigeria’s fuel crisis continues to linger, Oil marketers, Thursday, urged the Federal government to remove all hurdles or roadblocks currently hindering operations in the downstream sector.

The oil marketers listed the hurdles, including lack of foreign exchange at the N600 to a dollar government rate, payment of rates and duties, and added that they affect operations in the sector.

This was even as the Chairman of Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Winifred Akpani, who visited President Bola Tinubu also urged him to reduce all dues and levies to government agencies,  suspend charges and taxes imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, scrap the 2.5 per cent security deposit for all purchases and revise the clause in the Petroleum Industry Act, PIA 2021, which restricts importation to only companies with active local refining licences and /or proven track records of international crude oil and petroleum products trading in order to boost operations in the sector.

The marketers said their efforts targeted at flooding the domestic market have been frustrated by lack of foreign exchange, explaining that without importation consumers might not have choice.

In a telephone interview with Vanguard, National Operations Controller of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, said the ex-depot price of the product is now N479.50 per litre.

Osatuyi said the price of a 33,000 litre-truck has risen to N21.8 million, from N7.7 million, adding that marketers, who paid before need to pay more before lifting the product.

Another marketer, who pleaded anonymity said: “Oil marketers are also subjected to the payment of more than 10 kindly of illegal forms to monies, going to local government, unions and others.

He said: “A tanker driver heading towards the depots should hold at least N100 for settlement otherwise he cannot get to lift the product. These illegal payments amount to extortion, which must be passed down to consumers in one form or another.”

Similarly, the Chairman of DAPPMAN, Winifred Akpani, who visited President Bola Tinubu, yesterday, said: “The forces of demand and supply will naturally promote competition and efficiency and prevent price gouging. Deregulation will attract further investments in infrastructure and the employment of teeming Nigerian youths. To achieve a steady and strong downstream industry, it is pertinent that the full support of the government is assured.

“We applaud Mr. President’s statement on harmonization to a single foreign exchange rate. This is critical as this will eliminate arbitrage and provide a level playing field in our industry in particular and the Nigerian economy at large. This will also ensure the highest quality of product supply at the best prices.

“Our further humble request is that all dues and levies to government agencies particularly the NPA Plc and NIMASA be reduced to the barest minimum and payable in Naira. This will drastically reduce the pressure on our foreign exchange rate, reserve and keep in check the pump price of petrol.

“That all charges and taxes imposed by the regulator, NMDPRA as stipulated in the PIA 2021 be suspended until we achieve market stability. That the 2.5% security deposit requested by NNPC Ltd for all purchases be scrapped as they never overload marketers. A revision of the clause in the PIA 2021 which restricts importation to only companies with active local refining licences and /or proven track records of international crude oil and petroleum products trading. [s.318 (9)].

“In conclusion, we would add that stability in the petroleum industry will ultimately lead to the much-needed energy transition. We anticipate less dependence on fossil fuels which will result in more investment and faster development of gas and electricity as alternative sources of energy. We thank you once again for this opportunity and pray that our beloved nation will experience sustainable growth and economic prosperity under your astute leadership.”

Similarly, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, said the difference to be added by marketers is huge, thus affecting businesses.