NNPC’s Allocation for fuel importation drops

NNPC’s Allocation for fuel importation drops

The Petroleum Products Pricing Regulatory Agency (PPPRA) has released the second quarter petrol import allocations to the Nigerian National Petroleum Corporation (NNPC) and the private oil marketing companies, a development that will potentially ease the current product shortages, says THISDAY.

THISDAY also gathered that as part of the measures to correct the distortion and imbalance created by the reduction of the private marketers’ allocation to 28 per cent in the first quarter, the pricing regulatory authority has also slashed the allocation given to the NNPC from the 78 per cent in the first quarter to 41.73 per cent.

The Minister of State for Petroleum, Dr. Ibe Kachikwu, who held a meeting with the private marketers at the NNPC Towers in Abuja yesterday also warned the oil firms that any of them that failed to perform in this second quarter would be excluded from importation of petrol throughout this year.

Kachikwu convened the meeting to deliberate on how the private marketers would resume importation and also to brief the firms on the outcome of his engagement with the Central Bank of Nigeria (CBN) on how the issue of scarcity of foreign exchange would be tackled.

A source privy to the meeting told us last night that Kachikwu assured the marketers that the federal government would provide part of the forex for the importation while the marketers would source for the balance.
“The meeting deliberated on the issue of forex and the second quarter import allocation. He (the minister) told the marketers that their lion share has been restored while the allocation of NNPC has been slashed. The minister promised that the federal government would provide part of the forex, while the marketers source for the balance, which will also be paid later by the government. He also promised that the federal government was considering payment of interest on the balance. Kachikwu warned that having received all these incentives, the marketers should not have any excuses, and that any of them who fails to perform in this second quarter, will be excluded from importation throughout the rest of this year,” the source explained.

According to him, the minister also promised that cargoes would start coming into the country as from April 7 as he earlier promised the Senate.



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