Oil Marketers in the country have raised an alarm that Nigeria might witness another bout of fuel scarcity as importers and marketers of petrol lament scarcity of foreign exchange, the continuous payment of petroleum equalisation fund (PEF), the government ceiling on product’s pump price.
They also expressed concern that an outstanding $950 million Letters of Credit (LCs) could mar the further imports and distribution of products in the months ahead.
“I think the PEF and the ceiling on prices should be stopped immediately if we have deregulated the industry so that marketers can know they are in a new business regime that offers no reimbursement or subsidy payment,” said a top official of an oil firm.
“In the North, the prices of raw foods and fruits is very cheap compared to when they are brought down to the South and no one pays an equalization fund to government to bring food to the South from the North, so why still charge oil marketers and fuel importers PEF?”
This thing will force some of us to stop this business soon because it is not profitable,” added the official who spoke on condition of anonymity.
The total Letters of Credit matured obligation for petroleum marketers, especially members of the Depot and Petroleum Products Marketers Association, DAPPMA, and Major Oil Marketers Association of Nigeria, MOMAN, currently stands at $950 million, which is another threat to importers, Daily Sun gathered.
