SUBSIDY: FG To Pay Marketers N156bn As Fuel Crisis Worsens

The Federal Government, yesterday, said it would pay oil marketers N156 billion, out of the about N256 billion the marketers claimed they are being owed.

This was even as the perennial fuel crisis in Abuja took a dangerous turn yesterday, as about 80 percent of petrol stations across the Federal Capital Territory, FCT, were out of stock, while the few with the product were selling a litre for between N130 and N160.

Minister of Finance, Mrs. Ngozi Okonjo-Iweala, who hinted journalists in Abuja about the planned settlement, expressed optimism that the payment, which is expected to be made today, will help address the perennial fuel scarcity.

According to her, the Federal Government is committed to ending the fuel scarcity within the shortest time and that despite the revenue challenges facing the government, the issue of fuel subsidy payments to oil marketers remain a priority.

She said: “We have been engaging oil marketers over the scarcity issue. We paid them N350 billion and N31 billion in the foreign exchange differential in December.

“Tomorrow (today), we will be paying them N100 billion for which we had earlier given them IOUs, and interest rate differentials of N56 billion.”

Black marketers’ day

The perennial fuel scarcity saw black marketers having a field day as they were seen, right in front of petrol stations and even in front of the headquarters of the Nigerian National Petroleum Corporation, NNPC, in the Central Area in Abuja, selling in plastic containers to motorists at a minimum of N200 per litre.

Even in petrol stations along the road to the offices of Department of Petroleum Resources, DPR, and Petroleum Products Pricing Regulatory Agency, PPPRA, the black marketers were boldly plying their trade, selling at exorbitant prices.

At Mabushi, under the bridge, scores of black marketers have taken over the entire area, lining up their 25-litre, 30-litre and 50-litre gallons on the road.

Almost all the petrol stations along the Kubwa Expressway were shut, with only NNPC filling station at Katampe junction and along the expressway selling.

The NNPC filling station at Gwarimpa was also selling, with queues stretching as long as two kilometres.

MRS Petrol Station and many others along the Airport Road, as well as Oando near the National Hospital, were not selling.

When oil marketers are vexed

Major oil marketers had, a couple of days ago, warned that the fuel scarcity might linger for a while as the Federal Government had failed to pay what it owes marketers, who imported fuel into the country.

The marketers, under the auspices of Major Oil Marketers Association of Nigeria, MOMAN, decried government’s inability to disburse the outstanding payments due its members for the import of Premium Motor Spirit, PMS, under the Petroleum Subsidy Fund.

In a letter to the Minister of Finance/Coordinating Minister of the Economy, Mrs Ngozi Okonjo-Iweala, the association through its Executive Secretary, Mr. Thomas Olawore, stated that despite previous assurances from the government to reimburse marketers the under recovery due to them as verified by PPPRA, government had failed to honour its agreement.

Letter to FG

The letter reads in part: “At the previous meeting, you empathized with the marketers and committed to full restitution provided these were verified by the Petroleum Product Pricing Regulatory Agency, PPPRA.

“You also assured marketers that they would be fully reimbursed for the interest (incurred due to the late payment) and foreign exchange (Forex) differential elements of their Under Recovery within thirty days of the meeting.

“Furthermore, you committed to immediately issuing Sovereign Debt Notes, SDNs, for the outstanding Under Recovery with full payment on or before April 28.

“Regrettably, despite your above commitment and assurances, the industry to date has only received approximately N30 billion in Forex differential claims out of the N100 billion owed. In the same vein, only N345 billion has been received in core subsidy payments covering payments up to the second quarter of 2014.

“Only three companies out of the six MOMAN companies, received payments for Forex differentials and no company, MOMAN or DAPPMA (Depot and Petroleum Products Marketing Association) has been paid interest charges on delayed payments.”