Connect with us

Newsroom

FG, Oil Marketers Bicker Over Petrol Pricing Regime

Published

on

FG Petrol Pricing Regime

FG, Oil Marketers Bicker Over Petrol Pricing Regime

 

Efforts by the Federal Government to tinker with the petrol pricing regime by option for pricing modulation may trigger a new crisis in the downstream sector as major oil marketers believe full price liberalization of the subsector have better benefits to the economy if adopted.

The oil marketers, under the aegis of Major Marketers Association of Nigeria (MOMAN), called for Premium Motor Spirit (PMS) commonly known as petrol full ‘price liberalisation’ in the downstream sub-sector against the government’s preference for ‘price modulation’.

The MOMAN’s Chairman, Mr. Tunji Oyebanji, in a statement, insisted that only full price deregulation will bring about long term stability in the downstream sector.

ALSO, READ:

Oyebanji said it had become necessary for the major oil marketers to state their position in view of the comments credited to the Minister of State for Petroleum Resources, Chief Timipre Sylva that government would implement a policy of ‘price modulation’ in the subsector.

The MOMAN chief stated that this implied that government would give effect to existing legislation enabling it to set prices in line with market realities through the Petroleum Products Pricing Regulatory Agency (PPPRA) as provided in its Act.

Oyebanji explained that the clear and obvious risk of the policy stance was that the country had never been able to increase pump prices under this law, leading to high and unsustainable subsidies and depriving other key sectors of the economy of necessary funds.

He clarified: “Our current situation laid bare by the challenges of coronavirus to the health of our citizens in particular and economy of our country in general, demands that we are honest with ourselves at this time.

A fundamental and radical change in legislation is necessary”, he said.

“When crude oil prices go up, government has always been unable to increase pump prices for socio-political reasons leading to these high subsidies and we believe the only solution is to remove the power of the government to determine fuel pump prices altogether by law”, the marketer stressed.

According to Oyebanji, purchase costs and open market sales prices should not be fixed but monitored against anticompetitive and antitrust abuses by the already established competition commission and subject to its clearly stated rules and regulations.

“The problem here is that government has retained for itself by law the power and the responsibility to fix pump prices of PMS which is what puts it under so much pressure and costs the country so much in terms of under-recoveries or subsidies when it cannot increase prices when necessary to do so.

It makes sense to relieve itself of this obligation now when crude prices are low and resort to influencing prices using the same tools it does for any other commodity or item on the market.

“We want the market to determine the price. There should be a level playing field. Everybody should have access to foreign exchange to be able to import and sell petrol at a pump price taking its landing and distribution costs into consideration.”

“We support the pronouncement of the NNPC GMD, Mallam Mele Kyari which said subsidy or under recovery must be things of the past,” Oyebanji added.

Join Us On Facebook

Continue Reading
Advertisement

ADVERTISEMENT

ADVERTISEMENT

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Customs Corner

Female Customs Officer Travels 12 African Countries on Motorcycle

Published

on

Author: Lucy Nyambi.

Superintendent of Customs Akpevwe Ogboru, a dedicated officer of the Nigeria Customs Service, has etched her name in history by becoming the first Nigerian woman to embark on a remarkable journey through 12 African countries on a motorcycle, covering an impressive distance of over 8,000 kilometers.

Commencing her expedition from Lagos on November 10, 2023, Ogboru navigated her way through Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea-Bissau, Senegal, Gambia, Mali, Burkina Faso, and Togo, ultimately arriving at the Seme-Krake Joint Border Post on Sunday, December 3, 2023.

Expressing her passion for travel, Ogboru shared, “It’s been an awesome journey. Africa and indeed, West Africa are great places. And I’ve come to realize that we’re all the same people. I think we’re using the same manual; it’s just the language and ethnic diversity, but everything is just the same.”

Commenting on security, she added, “Security is still the same thing; you just have to be security conscious, but it’s not as bad as they portray it, you know.” Ogboru encouraged women to pursue their dreams relentlessly, urging them not to be deterred by fears.

The Area Controller of Seme Area Command, Comptroller Timi Bomodi, expressed delight at Ogboru’s courage and passion during her extraordinary journey. He emphasized the commitment of the Comptroller General of Customs, Bashir Adewale Adeniyi, MFR, to foster a work-life balance for the officers and men of the service.

“The current management led by the CGC encourages a work-life balance; in other words, you work, but also balance it with some kind of activity that adds value to your life,” stated Comptroller Bomodi. “She’s the poster person for the Nigeria Customs Service. What she has achieved today no woman in Nigeria has been able to achieve it, and we are very proud of her success. She’s also portraying the image of the Nigeria Customs Service, and that means that there’s something positive that we are doing,” he concluded.

Continue Reading

Customs Corner

Nigeria Customs, IMF Collaborate to Enhance Service Efficiency

Published

on

Author: Abass Quadri.

The Nigeria Customs Service, in conjunction with the International Monetary Fund (IMF), convened with maritime stakeholders to pinpoint obstacles affecting cargo clearance and propose sustainable solutions for a seamless and efficient delivery of services.

The meeting presided over by Comptroller Suleiman Chiroma at Apapa Area Command on Friday, 1 December, 2023, aimed to address challenges hindering the smooth flow of cargo clearance processes.

Comptroller Suleiman Chiroma emphasized the commitment of the Comptroller General of Customs, Bashir Adewale Adeniyi MFR, to seek assistance and make concerted efforts for a streamlined cargo clearance process.

“The team has spent the past week evaluating various seaports, airports, and Customs processes. This meeting with our stakeholders is crucial to achieving a smooth and efficient trade facilitation process.” Comptroller Chiroma noted.

IMF representative Kenneth Head highlighted the significance of automation and the single window system in improving cargo clearance. The Customs Area Controller for Apapa Area Command, Comptroller Babajide Jaiyeoba, reiterated the service’s commitment to achieving a 48-hour clearance process.

Jaiyeoba stated, “Cargo clearance is a chain that requires every stakeholder to play their role diligently. We have identified the challenges and are actively working to address necessary gaps.”

Stakeholders at the meeting expressed concerns regarding delays and bottlenecks in the clearance processes. Gerald Mbamala, representing Bonded Terminal Owners, called for the welfare of officers in the Apapa environs, emphasizing the need for conducive accommodation, upgraded equipment for cargo handling, and improved access roads to the port.

Tunji Igbaugba, representing APM Terminal, suggested using API interaction to notify agents once their cargoes are cleared. He emphasized that this approach would reduce physical interaction and eliminate the paper processes involved in clearance.

Continue Reading

Customs Corner

Customs CG Appoints Comptroller Kamal Mohammed as Board Chairman of NCBN Limited

Published

on

Author: Muhammad Bashir.

The Comptroller-General of the Nigeria Customs Service, CGC Bashir Adewale Adeniyi MFR, has appointed Comptroller Kamal Mohammed as the Board Chairman of the Nigeria Customs Broadcasting Network (NCBN) Limited.

NCBN, one of the four companies owned by the Nigeria Customs Service, is a broadcasting institution that disseminates information about the Service through conventional and digital media platforms.

Comptroller Kamal Mohammed’s appointment was approved and announced by the Comptroller-General of Customs, CGC Bashir Adewale Adeniyi MFR, on Thursday, November 30, 2023, during the inauguration of the four Service’s companies at the Customs Headquarters in Abuja.

According to the CGC, this appointment reflects the commitment of the Customs’ Management Team to promoting a vibrant Customs administration through media and propagating its activities and mandates.

The Comptroller-General then urged Comptroller Kamal to live up to the expectations of the Management Team, stating, “I wish to charge you and your members further to ensure the effective management of this company and be dogged in the discharge of your duties and responsibilities.”

The board comprises Esther James Komo as Secretary, CSC Abdullahi Maiwada as a Member, and two directors from the Ministry of Finance Incorporated: Udechukwu Osakwe and Sabo Muhammad.

NCBN was inaugurated by the Comptroller-General alongside Customs Service Technical & Hanger Services Limited, Nigeria Customs Service Training & Hotels Limited, and Nigeria Customs Service Hospital Limited.

Continue Reading

Trending