By Faith Tiza Mar, 24, 2022 Private

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has revealed that the inability of marketers to obtain foreign exchange (FX) at the Central Bank of Nigeria rate is partly to blame for the rise in fuel scarcity since they must purchase FX on the black market.

PENGASSAN President, Mr. Festus Osifo, made the announcement at a news conference in Lagos on Wednesday.

He encouraged the FG to make FX available to importers at the official rate in the short term, as well as remove duties on the import of fuel items.

According to reports released this week, Nigeria's inflation rate shifted in February, rising to 15.7 percent from 15.6 percent the previous month, owing to gasoline shortages across the country.

What PENGASSAN has to say

"Although the increase in the price of crude oil in the international market is partly to blame for the surge," Mr. Festus Osifos said, "from our findings, the non-availability of foreign exchange (FX) at the Central Bank of Nigeria rate to marketers is largely to blame for the increase, as they source FX from the parallel market."

"This is without prejudice to the actions of unscrupulous merchants’ intent on robbing Nigerians blind."

He also asked the FG to remove all taxes and charges on petroleum goods imported. He also called for the Nigerian Liquefied and Natural Gas Company and other gas producers to be compelled to focus more on local gas production, as well as increased efforts to speed up the present rate of refinery rehabilitation to ensure energy security.

"Make FX available to importers at the official rate in the short term."

"Should this oddity and distortion persist, it has the potential to plunge the country into another round of recession, further impoverishing the already impoverished populace," Osifo added.

On electricity rates, the Union demands that there should be no increase in tariffs without a matching increase in power supply and that the age of estimated billings, which has resulted in people paying more than their real consumption, be ended completely.

Tags: pengassan fuel scarcity foreign exchange marketers petroleum natural gas cbn fx mr festus

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