The Federal Government of Nigeria may have to increase its payment on petrol subsidy as oil marketers demand increased margins on the product. The marketers called on the Petroleum Products Pricing Regulatory Agency to increase the margins, so as to prevent collapse of fuel distribution system in the country.
The petrol pricing template of the PPPRA stands margins at N6 and N2.36 for retailers and dealers respectively and N3.36 per litre for transporters. But officials of the Major Oil Marketers Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria say the margins are overdue.
Mr. Clement Isong, who is the Chief Executive Officer and Executive Secretary of MOMAN, said the current margins were limiting marketers’ ability to invest in upgrade of fueling stations and purchase of new trucks.
According to him, the margins are already incurring losses from the members of the association as they are long overdue.
He further said the margins can be increased without a change in the petrol pump price as this would only mean that the government will be funding more.
Isong said the increased margin is not a luxury; it is a necessity, required for the smooth scaling of the fuel distribution system.