NOGASA Blames Increasing Cost Of Diesel, Bad Roads for High Operational Costs for Oil and Gas Suppliers
… Confirms DSS Intervention Helped Ease Fuel Queues
Mr. Bennett Korie, the national president of the Natural Oil and Gas Suppliers Association (NOGASA) has blamed the cost of diesel and the dilapidated nature of bad roads across the country for the increase in operational costs incurred by petroleum products suppliers, which he said is responsible for selling petrol above the approved pump price by some marketers.
Speaking at an interactive media chat in Abuja on Monday, he noted that petroleum products suppliers are groaning under increasing expenditure in the course of delivering products to the filling stations, leading to huge losses in the process.
He explained that because vessels, tank farms owners and tankers depend on diesel, which is sold at exorbitant pump price due to the removal of subsidy on the product, the operational costs of delivering petrol from the depots to their filling stations has continued to skyrocket.
The NOGASA President then suggested that a subsidy on diesel will reduce the landing cost of petrol.
He further explained that part of the plights of the oil and gas suppliers is the dilapidated nature of roads across the country, saying that they are forced to change tires and other spare parts more often than normal.
He also blamed scarcity of forex as a major contributor to the high landing cost of petroleum products as petroleum products are being imported.
He, however, expressed optimism that the Nigeria’s refineries will begin operations within a month, saying that the body has confirmed from sources that the Port Harcourt Refinery will begin full operations following the completion of a turn around maintenance at the facility.
Mr. Korie noted that the reduction in queues at the petrol stations in parts of the country became possible due to the recent intervention by the Department of State Services (DSS).
The Street Reporters Newspaper recalls that the DSS had earlier in the month issued a 48-hour ultimatum to all stakeholders in the oil industry to resolve the biting fuel scarcity across the country.
The secret agency had warned that it would launch a nationwide operation on saboteurs if there were still queues at various filling stations in the country after the ultimatum.
DSS spokesperson, Peter Afunanya, had stated this shortly after the Director-General of DSS, Yusuf Magaji Bichi, met with major stakeholders in the oil industry at the agency headquarters in Abuja earlier in the month.
Mr. Korie, during the interview with journalists at the NOGASA headquarters also confirmed that after the DSS ultimatum to all stakeholders in fuel supply chain to restore normal supply of petroleum products across the country or be ready to face the consequences of their actions, the situation have improved in many parts of the country.
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