The Forex differential at both the official and parallel market prices has been cited by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) as a key obstacle to the price of Premium Motor Spirit (PMS), often known as Petrol.
Marketers have continued to express dissatisfaction with the difficulty of obtaining foreign exchange at the official rate.
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This was made known by DAPPMAN’s Chairman, Mrs Winifred Akpani, at a news conference held in Lagos on Tuesday.
Mrs Akpani urged the Federal Government to provide petroleum marketers with access to foreign exchange at the official rate of the Central Bank of Nigeria (CBN) in order to improve the supply and distribution of Premium Motor Spirit (PMS), better known as petrol, across the country.
She stated that having access to foreign exchange at the official rate will increase fuel availability throughout the country.
She went on to say that the hardship of acquiring dollars through the parallel market for transactions based in Nigeria has put petroleum marketers in a bind.
In addition to basic operational expenses denominated in dollars, petroleum marketers had to source monies from the secondary market to pay for fees and levies, some of which were illegal and levied in dollars, according to Akpani.
Accessing currency through the CBN window, according to Akpani, would increase capacity, promote seamless supply of gasoline, and usher in a regime of sustainability in terms of storage, distribution, and supply across the country.
Mrs Akpani lamented the lack of a level playing field that ensures access to dollars at official rates for all marketers, adding that having the NNPC as the sole importer of petrol was not sustainable, given the product’s massive use.
According to her, strategic decisions in the business must be made to guarantee that Nigeria capitalizes on the predicted expansion in oil product demand across Africa.
The CEO of DAPPMAN commended the Federal Government and the Nigerian Midstream and Downstream Regulatory Authority for emerging gains in the industry, particularly since the passage of the Petroleum Industry Act.