FG approves payment of N413bn to oil marketers

as NNPC assures of adequate fuel supply

The Federal Government has approved the payment of N413 billion for oil marketers so that they can import Premium Motor Spirit (PMS) or petrol into the country. This is a substantial reduction in the N470 billion debts the marketers claim the government owes them.

One of the operators, who was asked by BusinessDay to comment on the development, but who did not want his name mentioned, said although this was not all the debts the government was owing the marketers but this development would substantially alleviate the problems the lack of payment had created within the downstream sector of the petroleum industry.

Meanwhile, the Nigerian National Petroleum Corporation (NNPC) on Wednesday stepped up measures to eliminate the noticeable fuel queues in some petrol stations across some major cities in the country, with the injection of additional volumes of PMS to enrich product availability in the affected areas.

The NNPC in a release stated that in line with its drive to ensure zero fuel queues ahead of the forthcoming yuletide and beyond, the Corporation was working assiduously with its downstream subsidiary company, the Pipelines and Products Marketing Company (PPMC) and other downstream players to consolidate the prevailing stability in the supply and distribution of fuel nationwide.

“Apart from increasing the volume of products distributed to stations across the country, inspection team from the PPMC have been commissioned to go round our operational areas to ensure compliance with laid down rules regarding loading and product evacuation across board to eliminate hoarding and other vices detrimental to the free flow of products,’’ NNPC said.

The Corporation noted that the initiative to ensure zero fuel queues had been bolstered with the approval by the Federal Government for the immediate payment of N413 billion to oil marketers as outstanding payment for subsidy claims.

“It is our belief that with the outstanding payment due to oil marketers now assured, the marketers and other downstream players will join hands with the NNPC to guarantee that the nation remains wet with petroleum products all year round,’’ the Corporation said.