The Major Oil Marketers Association of Nigeria has said it is committed to maintaining the government-approved price of Premium Motor Spirit (petrol) at N145 per litre.
The association also said it would henceforth ensure an uninterrupted supply of petroleum products nationwide after its meeting with the Federal Government in Abuja.
The Federal Government had in May 2016 increased fuel price from N86 to N145 in a bid to liberalise the oil sector and curb the scarcity of the product in the country.
Despite this, there were about three well-pronounced fuel scarcity crises within just three months in the first 10 months of President Muhammadu Buhari’s administration.
Major oil marketers had argued that the N145 fuel price was not realistic as it did not correspond with the price-determining components of the commodity and the fluctuations of the foreign exchange rate.
Since then, oil marketers had kept on pressurising the Federal Government to allow the market to fully liberalise and allow for increase in fuel price, the refusal of which could lead to fuel scarcity crisis in the future.
But after a two-day consultative forum held during the week between the Federal Government and the major oil marketers, MOMAN said it agreed to maintain the oil price at N145 per litre as the Federal Government had resolved to alleviate the current challenges being faced by marketers.
MOMAN further said it would ensure an uninterrupted and effective distribution of petroleum products nationwide.
In a communiqué, MOMAN Chairman and Group Chief Executive Officer, Forte Oil, Akin Akinfemiwa, commended the Buhari administration for convening the meeting, stating, “Our members are committed to ensuring more than sufficient supply of PMS to the nation at the fixed pump price of N145/litre and to this end, Nigerians have no reason to panic. With the commitments from all the stakeholders present, I am optimistic that Nigeria shall remain the aviation refuelling hub for West Africa.”
MOMAN added, “The forum reviewed the state of the downstream sector and addressed issues that may impede the uninterrupted supplies of petroleum product, leading to price distortions.
“Discussions focused on designing proactive measures that will balance supplies and maintain the fixed pump price of N145/per litre for PMS. Furthermore, deliberations also extended to creating an affordable and stable price regime for deregulated products such as AGO and ATK which, in recent times have been volatile.”
Further steps taken at the meeting as stated by Akinfemiwa include a “significant reduction in the price of AGO (diesel) at all MOMAN member retail channels in order to create a balanced supply system nationwide.”
The association also asked Nigerians to make use of the whistleblowing platform recently instituted by the Federal Government by reporting any erring MOMAN member.
At the meeting were the Chief of Staff to the President, Mallam Abba Kyari: the Minister of Finance, Mrs. Kemi Adeosun; the Minister of State (Aviation), Senator Hadi Sirika; the Central Bank Governor, Mr. Godwin Emefiele; and the Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, among others.