By OMA | 06-01-2018 | Politics |
From all the facts laid bare before the general public from the meeting held at the instance of the senate chairman on downstream, it became crystal clear and evident #145 per liter isnt sustainable as it stands today.
Making this stance known was when the minister of state for petroleum Ibe Kachukwu told the committe why the nation went through roughly a 1 month period of fuel scarcity and especially during the holidays and festivities.
In his revelation, the minister categorically stated that the landing cost of PMS that used to be #133 per Litre has shot up to #171 and making it very unattractive for independent marketers to import the product and sell at government approved price of #145 as no rational business man would buy at #171 only to sell at #145.
That said, it made it most apparent why no independent marketer was in the business of importing any longer since it was no longer attractive to do so. This development made the NNPC the sole importer of PMS, importing at #171 and selling at #145 incuring a loss of around 800 to 900 million naira per day importing over 25 milliom metric tonnes on the daily average.
With this revelation, it made it apparent the government had to come to a resolution to solve this crisis and the recommendations were what left us mouth agape.
Below were the recommendations the panel suggested.
“One, is for the Central bank of Nigeria (CBN) to allow the marketers access forex at the rate of N204 to a dollar as against the official rate of N305 to keep the pump price of fuel per litre at N145.
“Two, to give room for modulated deregulation where NNPC would be allowed to continue selling at N145 per litre in all its mega stations across the country while the independent marketers should be allowed to sell at whatever price is profitable to them in all their outlets.
“Three, to look at the direction of blanket subsidy for all the importers in bridging the gap which would be like going back to a problem that had earlier been solved,” he said ...
Going by these 3 recommendations, you would see why we are of the opinion of having pump price at #145 floating between the devil and the deep blue sea.
How do you access forex from CBN at #204 and we trust this subsidised forex to be used for purchase of PMS.. Why not just buy at #204 and sell black market above #350..
How do you say only NNPC stations to sell at #145 and allow a free for all for other marketers? Wouldnt the fuel ques be unbearable at the NNPC Mega stations?
These facts leave PMS Price at a cross road.
What I suspect is that the pending the 2019 elections, NNPC would have to sustain their daily loss to keep price stable at #145 and after the 2019 election we could expect the worst.
The question is..
Is #145 per litre still sustainable?