The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has warned of an almost certain petrol scarcity as the cost of shipping oil products rises.
Benneth Korie, the president of NOGASA, has asked for government intervention to prevent a complete market shutdown by December 2023, pushing the government to provide solutions to the unfavourable exchange rates and taxes imposed by the Federal Inland Revenue Service (FIRS).
Korie voiced concern about the rising number of deaths, businesses, and job losses caused by the high expenses of importing, transporting, and distributing petroleum products.
“Many Depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high interest rates,” he said.
Read Also:
“Banks are not willing to guarantee funds release to stakeholders as a result of difficulty, instability and galloping rates of foreign exchange and high cost of the Dollar.”
According to Korie, the situation has grown extremely difficult for both independent and major marketers, providing insight into the recent nationwide increase in the price of cooking gas.
Korie warned that the administration’s success was dependent on the survival of the oil business and that it was in everyone’s best interests for the government to act quickly to prevent an industry collapse.
To achieve this, he proposed extending ‘Emergency Palliative Measures’ to marketers, assisting them to acquire petroleum products at a rate of at least N600 per dollar for the next three months while they await the promised reactivation of the refineries.
“This will go a long way in cushioning the harsh effect of the high cost of importation and equally bring about relief to the business and cost of living generally,” he added.
