Fuel scarcity: FG orders PEF to pay N150bn to oil marketers

Fuel scarcity: FG orders PEF to pay N150bn to oil marketers
January 25 23:11 2017

The federal government on Wednesday ordered the Petroleum Equalisation Fund (PEF) to immediately pay N150 billion bridging cost for the delivery of petroleum products owed oil marketers to forestall any threat to steady supply of fuel.

The order was given at a meeting between the Chief of Staff to the President, Mr. Abba Kyari and major stakeholders in the oil industry.

Speaking to State House correspondents after a close-door meeting, national Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Zarma Mustapha said marketers expect government agencies to commence immediate payment of the claims.

“The meeting had nothing to do with increase in petroleum pump prices. We looked into  the issue of diesel and kerosene and as a matter of fact government is tackling the issues

“The other issue is the issue of franchise which is the Petroleum Equalisation Fund which marketers are owed petroleum equalisation to the tune of about 150 billion and now the issue has been resolved, the government has directed that our monies must be paid and I am assuring you that with the payment of this money there is no cause for alarm,” he said.

The IPMAN scribe called on marketers to go back to terminals and continue loading petroleum products as they would be paid in the next couple of days.

He said there would be another meeting between the stakeholders and the financial authorities and then the payment would commence hopefully before the week runs out.

He said there would not be an increase in pump price of fuel Premium Motor Spirit (PMS) after the payment as some filling stations will sell for N140 as against N145 per litter.

“The government has instructed the Minister of Finance to pay the marketers and they have assured they will pay and as soon as the payment is done instead of N145 per litre, it can go for as low as N140 per litre” the scribe said. So there should be no worries about increment of PMS,” he said.

The meeting was attended by the Minister of State for Aviation, Mr. Hadi Sirika; Minister of Finance, Mrs. Kemi Adeosun; Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr. Kachalla Maikanti Baru; heads of Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Products Marketing Company (PPMC) as well as the representatives of the independent and major oil marketers in the country.