The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the Federal Government to implement an “emergency palliative measure” that would allow oil marketers to import petroleum products at an exchange rate of N600 per dollar for the next three months.
This step, according to NOGASA, should be taken while awaiting the promised revival of the nation’s refineries.
The National President of NOGASA, Benneth Korie, made this plea during the National Executive Council meeting of the Association.
He emphasized that such an initiative would help mitigate the impact of high importation costs and provide relief to businesses and the cost of living in general.
Korie also called on the government to address the deplorable condition of the country’s roads, as the state of the roads hampers the distribution of petroleum products.
He explained that while NOGASA applauded the removal of fuel subsidy, the right steps must be taken to cushion its effects for the survival of citizens and businesses.
According to the NOGASA President, Depot Owners are so terribly affected by the increasing cost of crude oil and exchange rate to the extent that many Depots are practically deserted as their owners are unable to secure Bank loans to fund their business due to high interest rates.
He stated further that more worrisome is the fact that banks are not willing to guarantee the release of funds to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar.
Speaking to journalist after the meeting, Korie said that many Depots are presently dried up or out of stock, adding that these claims are evidently verifiable.
He said, “We wish to intimate you of our grave concerns over the growing challenges of petroleum products procurement and distribution especially with the attendant hardships resulting from increases in pump prices of petrol (PMS) and diesel (AGO) across the country.
“NOGASA is seriously worried that between now and December this year, in the absence of Government urgent intervention, there will be increasing loss of lives, businesses and jobs with the accentuation by mass shut down of filling stations and packing up of petroleum tankers, due to unattainable high cost of importation, lifting, transportation and distribution of petroleum products.
“It will be recalled that while NOGASA applauded the removal of fuel subsidy, we warned and advised that right steps be taken to cushion its effects for the survival of citizens and businesses.
“Similarly, Depot Owners are so terribly affected by the increasing cost of the crude and exchange rate to the extent that many Depots are practically deserted as their owners are unable to secure Bank loans to fund their business due to high interest rates.
“Banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar. Many Depots are presently dried up or out of stock, and this is no gainsaying as it is evidently verifiable.
“Worst hit are Filling Stations whose owners find it extremely difficult to secure funds to procure products for their retail outlets and both the Independent and Major Marketers are so terribly affected that as at today, filling stations are shutting down in great numbers on a daily basis and dealers are going out of business with many more on the verge of bankruptcy because of their inability to secure funds to facilitate orders for their stations.
“Government must therefore urgently come to the aid of the industry as quickly as possible to save it from an impending colossal collapse which will in turn result in a more devastating blow to the economy at large. Indeed, the success of this Government highly depends on the survival of the Oil Industry, whose critical stakeholders are presently most negatively affected.”
He added that the poor road networks and maintenance need to be addressed as this development is already a waiting threat to the laudable Compressed Natural Gas driven transportation innovation of President Bola Tinubu.
Korie called for conscious and practical solutions to engage the local workforce to speedily refurbish and resuscitate bad roads across the country.