Stakeholders call for speedy payment of petrol subsidy

Fuel-dispencer24 December 2013, Abuja – Stakeholders in the downstream sector of the oil and gas industry have called on the Federal Government to ensure speedy payment of petrol subsidy, saying the inability of the government to pay subsidy as and when due has resulted in increased transaction cycles and supply chain shocks.

These industry stakeholders, who converged at the recent Oil Trading and Logistics (OTL) conference held in Lagos also urged the Federal Ministry of Finance, and other parties to timeously meet Sovereign Debt Note (SDN) commitments to prevent a systemic collapse of petroleum and financial markets in the country.

These resolutions which formed the communiqué at the end of the conference, also include a call on the National Assembly to expedite actions to ensure the passage of the Petroleum Industry Bill (PIB).

According to the participants, increased investment and industry development is anchored on clear and consistent legal and regulatory frameworks.
Apart from the PIB, the forum also raised some other issues of common concern to the industry and urged the relevant authorities to take measures towards resolving them.

They called for meticulous adherence to reporting requirements for all incidents to complement the global and regional maritime security efforts, and to enhance safety and security in the movement of petroleum products.

“As a means of reducing the impact of piracy and increasing revenues for the country, government is invited to consider the development of a secure anchorage area for vessels as a collaborative initiative between the public and private partnership (PPP),” part of the communiqué reads.

The forum acknowledged the continued negative impact of ship-shore oil theft and to ensure integrity and accountability in ship-shore volumes, insisting that ship owners should be held responsible for the actions of their crews which result in ship-shore discrepancies.

“In view of documentation, security and supply chain integrity challenges inherent in mother-daughter vessel transshipment offshore Cotonou, the Central Bank of Nigeria is urged to consider and approve offshore Lagos as an STS point for imported foreign cargo.  Considering that more transparent and value-based pricing benefits is central to the efficiency of petroleum products markets, including access to price-risk management instruments, government is called upon to take necessary measures towards achieving price and value driven petroleum products markets,” the communiqué added.

The participants also said they were worried about the impact on efficiency of petroleum products supplies and demurrage liability, and expressed grave concern over undue delay in the issuance of Naval Clearance.
The forum requested the cooperation of naval authorities in achieving issuance of naval clearance under 24 hours in all deserving cases.#

– This Day

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