Marketers Speak on Causes, Solution to Fuel Scarcity, Hike in Fuel Price in Nigeria

• The president of the Natural Oil and Gas Suppliers Association of Nigeria said road conditions impact the oil and gas industry
• Benneth Korie said that improving road infrastructure is just one component of a broader strategy needed to strengthen the petroleum supply chain.
• He called on the government to ensure that funds allocated for projects on road infrastructure were utilised effectively

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The poor quality of the nation's road system is to blame for the delays in the delivery of petroleum products, according to Benneth Korie, the president of the Natural Oil and Gas Suppliers Association of Nigeria.

Korie emphasized the significant impact road conditions have on the oil and gas industry during a press event in Abuja on Wednesday, August 28.

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He said:

“You will agree with me that roads contribute to the delays in the distribution of petroleum products in this country. It is very important to fix the roads. The major problem we face in the distribution of petroleum products is the roads.”

He urged the government to make sure that money allotted for initiatives related to road infrastructure was used efficiently.

Need to review price of diesel

The head of NOGASA also spoke about the necessity of reviewing the price of diesel because it affects the price of petrol.

“I always talk about the reduction in the price of diesel. I will give you very simple mathematics,” he said. “If I buy PMS at N600/litre for example and diesel for N1350/litre, if I’m taking it to Maiduguri to sell, don’t expect me to sell that PMS at N650/litre. It’ll go for N750/litre.”

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He emphasised that enhancing the petroleum supply chain requires a comprehensive strategy that includes improved road infrastructure. He urged the Federal Government to give road repairs first priority and make sure contractors are held responsible for completing their work on schedule and to high standards.

Korie also complimented the efforts of private sector participants, like Aliko Dangote, whose recently constructed refinery is anticipated to support the sector. In order to guarantee equitable distribution across the nation, he advocated that products from the refinery be made available to a broad variety of stakeholders.

He urged a wider range of stakeholders, such as Nigerian National Petroleum Company Trading, NNPC Retail, Depot and Petroleum Products Marketers Association of Nigeria, Major Energies Marketers Association of Nigeria, and Independent Petroleum Marketers Association of Nigeria, to have access to Dangote's refined products in order to guarantee a balanced distribution.

In addition, he discussed other urgent concerns, such as multiple taxation, smuggling, and the need for increased border security to stop illicit petroleum shipments.

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He reiterated NOGASA's dedication to collaborating with the government and other relevant parties in order to guarantee a secure and thriving oil and gas industry.

“Our joint efforts and timely actions in these areas will pave the way for a more stable and prosperous industry,” Korie said.

Meanwhile, there are anticipation that the full operation of Dangote refinery will improve the oil and gas sector in he country.

Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,

"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."

AMCON to sell Nigerian electricity company

Legit.ng reported that the Asset Management Corporation of Nigeria has stated that the Ibadan Electricity Distribution Company can only become more efficient if it is sold to viable investors.

Gbenga Alade, the managing director and chief executive officer of AMCON, made this announcement on Monday, August 26, at an interactive meeting with media executives in Lagos.

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Speaking to reporters, Alade stated that he evaluated the issues before AMCON shortly after taking office and identified the power industry as one that needs intervention.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng