*As marketers yet to receive all pending outstanding
Lagos — Mr. Clement Isong, the CEO/Executive Secretary, Major Oil Marketers Association of Nigeria, MOMAN, has expressed concerned over challenges facing the downstream sector.
He expressed his concern at the backdrop of a media chat held in Lagos last week.
Isong, said the image of the downstream sector of the oil and gas industry had, over the years, suffered considerable damage as a result of some underhand practices, particularly the penchant of some petrol station dealers for cheating at the pumps.
He equally condemned the unwillingness of some oil product transporters to present fit and proper vehicles and trained drivers for the movement of hazardous cargo such as petroleum products.
According to him, oil marketers are yet to receive all pending outstanding debts payments owed by government on subsidy.
Isong said that the huge debts has affected marketers from getting loans from banks, adding that issue of margins remains imperative in their businesses.
According to him, oil marketers still need margins for the sustainability of members’ business. “It does not make sense to import because it’s not profitable”, he said.
“Total deregulation of the sector remains the best option for the downstream sub-sector of the oil and gas industry.
Due to backlog of debt owed marketers by the federal government, the state oil corporation, NNPC has for some years now, been the sole importer of petroleum products into the country.
To clear the debt, the Senate in May, had approved the payment of N68.9bn as outstanding subsidy claims to 20 petroleum marketers.
The breakdown showed that N10.8bn was approved as subsidy claim to Tanzila Petroleum Company, while N58.1bn was okayed for 19 oil marketing companies.
Some of the oil marketers are Conoil, Oando, A&E Petroleum, Matrix Energy, Ontario Oil & Gas Limited, Swift Oil Limited and Honeywell.
Others are Blacklight, Fatgbems Petroleum, Forte Oil, Frado International, Tempogate Oil, Linc Nigeria Limited, IPMAN Investment, and Hudson Petroleum, Ontario Oil & Gas Limited, N9.8bn; Conoil, N8.3bn; Oando, N4.9bn; Matrix, N4.6bn; Honeywell, N4.3, and Swift Oil Limited, N4 bn.
Others are Forte Oil PLC, N3.8bn; Blacklight, N3.7bn; Stallionaire, N3bn; and Tempogate Oil, N2.3bn, among others.
The approval followed the adoption of the report of its Committee on Petroleum Downstream on the Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations to Petroleum Marketers.
How, according to the MOMAN Secretary, marketers are yet to receive full payments following the approval.