Fuel scarcity imminent

Marketers of petroleum products in the country have lamented that they are finding it difficult to source dollars to finance import transactions; even with naira equivalent readily available, and that this is threatening import contracts for Premium Motor Spirit (otherwise called petrol).

Marketers, who recently had their credit lines reopened by their banks after a long wait, are also having challenges getting adequate dollar conversions, due to scarcity of foreign exchange.

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, who spoke to Punch on Friday, said the development had been brought to the notice of the Central Bank of Nigeria, and the apex bank is expected to take quick action before the situation gets out of hand.

He said, “One serious problem marketers are having now is the scarcity of foreign exchange to conclude product supply transactions. Even with our cash in our bank accounts, we cannot get the required amount of dollars.

“We need the CBN Governor to intervene as far as the supply of foreign exchange to marketers is concerned.”

Another marketer who pleaded to speak on condition of anonymity said a single supply transaction required millions of dollars, noting, that “Wth the situation on the ground, we are limited to getting just $1m per week after so much pressure.”

Early this month, some stakeholders in the downstream sub-sector of the nation’s petroleum industry said the silence of the President Muhammadu Buhari-led Federal Government on policy direction is doing more harm than good to the segment and the nation’s economy at large.

Read also: Fuel subsidy stays for now – Buhari

This situation, they noted, was responsible for the high-level of uncertainty currently plaguing the sub-sector.

The Chairman, Nigeria Union of Petroleum and Natural Gas Workers, Lagos Zone, Alhaji Tokunbo Korodo, had said that operations in the downstream sub-sector were currently beclouded with uncertainties owing to political indifference.

He said political indifference in this regard remained glaring as the current government had yet to show a policy direction for the downstream segment since May 29 when it was inaugurated.

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