Nigeria oil marketer has said lack of Forex is the reason of high hike of pump price
This development comes months after the Federal Government announced the removal of petrol subsidy with the deregulation of the downstream sector of the oil industry and the expected resumption of petrol importation by the oil marketers.
The Nigerian National Petroleum Corporation (NNPC) through its subsidiary, Pipeline and Products Marketing Company (PPMC), had been the sole importer of petrol in the country.
The oil marketers, which includes the Major Oil Marketers Association of Nigeria (MOMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) still depend on PPMC for the supply of most of the products.
The Managing Director of Financial Derivatives Company, Mr Bismarck Rewane, had also pointed out that apart from petrol pricing, one other element of petroleum marketing that had not been fully deregulated was access to foreign exchange.
He explained that private importers of petroleum products do not have access to foreign exchange, leading to the continuous monopoly by the NNPC in the country’s petrol importation.
This follows the meeting of the oil marketers with officials of the Federal Ministry of Finance on the need to make the foreign exchange available for petrol imports.
However, weeks after the pronouncement, it appears nothing has changed as the oil marketers are still experiencing some difficulties in assessing foreign exchange at the official rate.