One year after the partial liberalisation of the nation’s fuel market, the Minister of State for Petroleum Resources, has expressed concern over the continued supply of over 90% of petroleum products in the country by the Nigerian National Petroleum Corporation (NNPC), The Punch reports.
Most oil marketers have stopped fuel importation due to shortage of foreign exchange and increase in crude prices, which they claim have made it unprofitable to import petrol and sell at N145 per litre. Kachikwu, in his presentation at the 2017 first Business Clinic of the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry in Lagos on Friday, stressed the need to reposition the downstream sector of the oil and gas industry.
He noted that the downstream sector witnessed increasing gaps in product supply in the first and second quarters of 2016, adding that the non-availability of forex and the inability of marketers to open letters of credit had forced them to stop importation. The minister, who was represented by the Chief Operating Officer, NNPC, Mr. Henry Ikem-Obih, stressed the need to revisit the price modulation that was introduced to reflect the movement of crude oil prices on fuel price.