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In a bid to forestall disruption in the supply chain of Premium Motor Spirit (PMS) arising from forex challenges, the federal government has mandated all the parties involved in the supply chain to reach an accord to receive harges in naira.
It would be recalled that some depot owners have hiked the depot prices of PMS over what they called the dollar payment of the charges at the ports.
However, the Central Bank of Nigeria(CBN), the Nigerian National Petroleum Corporation Limited, (NNPC), Federal Ministry of Transport, the Nigerian Maritime Administration and Safety Agency, (NIMASA,) the Nigerian Port Authority, (NPA) and oil marketers have agreed to draw up invoices on marketers vessels in naira as against dollars.
This agreement was contained in a communiqué jointly signed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority,( NMDPRA), NIMASA, NPA, NNPC, Major Oil Marketers Association of Nigeria, (MOMAN), and the Depot and Petroleum Products Marketers Association of Nigeria, (DAPPMAN) after stakeholders meeting on Tuesday in Lagos.
According to the communiqué, the CBN, after the meeting, has agreed to source for dollars at the official CBN rate, while oil marketers will pay in naira.
Prior to the agreement, NIMASA and the NPA’s invoices on marketers vessels had dollar components for which the marketers have been buying from the black market.
This has contributed to increased operating costs by oil marketers due to the increasing Forex rate.
However, with the new agreement, oil marketers are expected to pay in Naira and no longer in dollars.
It was further learnt that although NNPC had been charging in Naira for marketers’ use of their time chartered vessels, the Corporation however suddenly changed it to dollars about four months ago.
As a result, oil marketers operational costs also shut up, further aggravating the market.
“That is now partially resolved by this resolution”, a source hinted.
While NNPC assured of sufficient supply of Premium Motor Spirit or petrol across the country, the Corporation has agreed to immediately “revert” to naira denomination invoices for excess capacity for coastal movement using the I&E window rate for the time being.
