NOGASA calls for special intervention to save oil marketers
By Linus Aleke, Abuja
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), has called on the Federal Government, to provide emergency palliative to oil marketers to keep them in business and prevent a looming energy crisis in the country.
In a communiqué read at the end of the National Executive Council Meeting of NOGASA on Thursday in Abuja, the National President, Mr Bennet Korie, warned that if the urgent step is not taken by the government, many marketers may be forced to close shop, before January 2024.
According to the communiqué: “the 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. We wish to once again and most sincerely reiterate that the only realistic option out of this dire situation for now is for the Government to urgently consider expediting the provision of “EMERGENCY PALLIATIVE MEASURES,” for Marketers such that fuels can be imported at the rate of at least N600 per Dollar for the next three months while waiting for the promised reactivation of our Refineries”.
The National Executive Council of NOGASA, an umbrella body for all marketing and distribution bodies in the country, noted that it has been speaking expressly and expediently through its National President, Mr. Benneth Karie, with strong insight and alerts to the government on the scary trend that is evolving thus far.
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The union said that it is seriously worried that between now and December this year, in the absence of Government urgent intervention, the increasing losses of lives, businesses and jobs with the accentuation by the mass shutdown of filling stations and packing up of petroleum tankers, all due to unattainable high cost of importation, lifting, transportation and distribution of petroleum products.
“Just today, a major newspaper confirmed the price of Diesel to have hit N1000 per litre. This is just “a flash in the pan”, and suppliers are at the very bitter receiving end of this precarious development. It will be recalled that while NOGASA applauded the removal of fuel subsidy, we warned and advised that those right steps be taken to cushion its effects for the survival of citizens and businesses,” the group said.
Depot Owners, the union said 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.
Mr. Korie said that banks are not willing to guarantee funds release to stakeholders as a result of the difficulty, instability and galloping rates of foreign exchange and the high cost of the Dollar, stressing that many depots are presently dried up or out of stock, and this is no gainsaying as it is 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 of today, filling stations are shutting down in great numbers daily 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,” the communique concluded.
The National President, of the Petroleum Retail Outfit Owners Association of Nigeria (PETROAN), called on the government to reevaluate its stance on fuel subsidy removal in the interest of the generality of Nigerians.
He noted that while subsidy removal is inevitable, the government has to retool the policy to lessen the suffering of the masses and save the industry from imminent collapse.
