Categories: Markets

FG Orders Massive Importation of Kerosene – Marketers

In a bid to check the arbitrary increase in the pump price of kerosene, the Federal Government has placed an order for massive importation of the product, oil marketers have said.

According to them, the government has also ordered huge importation of Automated Gas Oil, popularly known as diesel. They further stated that with the increase in the supply of the United States dollars by the Central Bank of Nigeria, the price of Premium Motor Spirit, otherwise called petrol, will not be hiked as earlier anticipated.

Last week, oil marketers had told reporters that the actual cost of petrol should be N151.87 per litre.

They said the calculation was based on the ex-depot price of the commodity and the scarcity of forex.

To avert the hike, the government had met with the marketers last week and it was learnt that the CBN might intervene.

Speaking in Abuja on Wednesday during the inauguration of the Eastern Zonal Executive of the Independent Petroleum Marketers Association of Nigeria, the association’s Chairman, Board of Trustees, Mr. Abubakar Usman, said marketers would start getting large volumes of kerosene and diesel as the government had ordered for increased importation of the commodities.

He said, “There is something that I am going to tell you that shall make you happy. Very soon, the products, DPK (Dual Purpose Kerosene) and the AGO, will be in circulation under the leadership of Chinedu Okoronkwo. Those that are not aware are aware now. Sooner or later, I cannot say today or tomorrow, but very soon, the AGO will arrive. The DPK will also arrive in the country.”

told IPMAN members that the current scarcity of kerosene would soon be a thing of the past as the product would circulate sufficiently when delivered.

He noted that upon arrival, no member would be required to lobby or bribe to secure allocation.

Usman said, “And when it arrives, each and every one of us will get his allocation. You don’t have to come to Abuja to give bribe looking for allocation of two or three trucks. Just go to your depot manager, go to your zonal chairman and you will get it. You don’t have to waste time going to Lagos or Abuja for the product.”

When asked to state the price the product will be sold when it arrived, Okoronkwo said, “It will be lesser than what the NNPC retail outlets will be selling.”

On the possible increase in the pump price of the PMS, he said that the move by the CBN to increase marketers’ access to foreign exchange would lead to price stability, adding that the intervention would warrant an appreciation of the naira.

He said, “Right now, you are aware that some Bureau De-Change operators have qualified to get the forex. And very soon, there will be forex in the system where people can now leverage. And if we have enough forex, it means that the price at which people are getting it now will drop.

“This will impact in every other business. Very soon, the CBN will release dollar and that will make the naira to appreciate. For marketers, importers and manufacturers, everything will come alive again.

“The IPMAN will also leverage this window to ensure that our products come at prices that members of this country will enjoy.”

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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