PENGASSAN on Fuel Scarcity: Non-Availability of FX Responsible For Crisis

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reported that the inaccessibility of foreign exchange (FX) at the Central Bank of Nigeria rate has greatly contributed to the increase in fuel scarcity since marketers source foreign exchange from the parallel market.

This was disclosed by PENGASSAN President, Mr Festus Osifo at a news conference in Lagos.

He urged the FG to make FX available to importers at official rates in the short term, as well as remove taxes on fuel imports.

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Mr Festus Osifos said, “Although, the increase in the price of crude oil in the international market is partly responsible for the surge, from our findings, the non-availability of foreign exchange (FX) at Central Bank of Nigeria rate to marketers is largely responsible for the increase as they source FX from the parallel market.

“This is without prejudice to the activities of unscrupulous marketers that are bent on milking Nigerians dry.“

He also petitioned the FG to remove taxes and levies from the importation of petroleum products.

Furthermore, he urged Nigeria Liquefied and Natural Gas, as well as other gas producers to concentrate more on domestic gas production, and urged that efforts be intensified to accelerate the current rate of rehabilitation of Nigeria’s four refineries to ensure energy security.

“While on the short term, make FX available to the importers at the official rate. Should this abnormality and distortion continue, it has the ability to drive the country into another round of recession and further impoverish the already battered citizens,“ Osifo said.

On Electricity tariffs, The Union has decided that no increase in electricity tariffs should take place without an increase in power supply and the phase out of estimated billings. As this has resulted in consumers paying more for energy than they used.