Pay N350bn fuel subsidy before importation—Marketers tell FG

MOMAN Executive Secretary, Obafemi Olawore

Petroleum Marketers have called on the Federal Government to pay fuel subsidy which peaked at N350 billion before they will embark on fresh fuel importation. The subsidy debt on Premium Motor Spirit imported under the Petroleum Support Fund (PSF) scheme  peaked at N350 billion according to  Major Oil Marketers Association of Nigeria (MOMAN) and  the Depot and Petroleum Products Marketers Association (DAPPMA).

This was disclosed in a separate interview on Channels Television on Wednesday.

The Executive Secretary MOMAN Mr Obafemi Olawore said that the Federal Government should engage the support of the petroleum marketers comprising MOMAN and DAPPMA to ease fuel queues across all the states in the country. The payment of  fuel subsidy arrears of N350 billion to importers, he said would reduce the burden of the NNPC as the sole supplier of PMS into the country.

The Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), Mr. Olufemi Adewole explained that the only condition for marketers to embark on fresh fuel importation is for the administration of President Muahmmadu Buhari to pay the arrears. “we have received allocation for the third quarter but we cannot import since there is no fund to finance the allocation,” he lamented.

Recently, the marketers had requested for the balance of the subsidy arrears promised to be paid by the former Minister of Finance Dr (Mrs) Ngozi Okonjo-Iweala. This they claimed had become necessary  to be able to settle banks incurred as interest on delayed payment and foreign exchange differentials.

Adewole said: “This much was expressed to Depot and Petroleum Products Marketers Association, DAPPMA, and the Major Oil Marketers Association of Nigeria, MOMAN, by former Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala in her letter to both associations, a copy of which she also released to the Senate Committee for reference.

“However, the letter did not state the timeline for the re-verification exercise which the minister instituted on the amount she disputed and also did not state the expected date of payment which “PSF” participants had been clamouring for in all the meetings held with the former CME/HMF since February 2015,” Adewole said.

He said that, “It should be noted that this is the first time since the establishment of the Petroleum Subsidy Fund scheme that marketers will not have ready and easy access to fuel import loans as it is also the first time that commercial banks will notify importers that based on Central Bank of Nigeria, CBN regulations, importers have attained their credit ceilings with their various banks and would have to make some refunds on the existing loans to the sector prior to being funded for petrol imports; unfortunately the expected refund