The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has linked the lingering fuel scarcity nationwide to the inability of marketers to source adequate foreign exchange (forex) required for importation of refined products to meet domestic demand.
The PENGASSAN President, Mr. Festus Osifo, explained that oil marketers had been unable to obtain forex at the official rate for their imports, thereby making some to depend on the parallel market, which is costlier and difficult to get.
On the impact of inadequate forex on fuel supply, the oil marketer said: “Although, the increase in the price of crude oil in the international market is partly responsible for the surge, from our findings, the non-availability of foreign exchange (FX) at Central Bank of Nigeria rate to marketers is largely responsible for the increase as they source FX from the parallel market.
“This is without prejudice to the activities of unscrupulous marketers that are bent on milking Nigerians dry”, Osifo added.
The PENGASSAN chief listed some of short term and long term options for the government to end the lingering fuel scarcity as including, the removal of taxes and levies from the importation of petroleum products.
This is even as he also advised the government to focus more on domestic gas production by Nigeria Liquefied and Natural Gas (NLNG) and other producers as well as the rehabilitation of the four refineries to end the lingering energy crisis.
He expatiated: “While on the short term, make FX available to the importers at the official rate, Should this abnormality and distortion continue, it has the ability to drive the country into another round of recession and further impoverish the already battered citizens.”
