Kerosene importation hindered by forex – Oil marketers

Oil marketers in Nigeria are still reluctant to resume the importation of Dual Purpose Kerosene (DPK), after abandoning the venture for over two years on the grounds of unprofitability.

The marketers complained that access to foreign exchange (forex) for the importation of DPK is marred by irregularities. Two years after the Federal Government removed subsidy on the product, marketers discontinued their participation in the product’s importation amid prevailing demand from households, and largely the aviation sector.

Kerosene is being imported and sourced from local refineries by the Nigerian National Petroleum Corporation (NNPC) solely, and sold to marketers at a deregulated ex-depot price of about N190 per litre. But the supply of the product has continued to be epileptic, and characterised by price differentials.

Given the rising demand for the product as aviation fuel, some households that depend on the product, pay as high as N350 per litre to get it for domestic use. Responding to queries on the position of marketers, the Major Oil Marketers Association of Nigeria (MOMAN), disclosed that marketers are facing challenges in the importation of other petroleum products, and not just DPK.

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association (DAPMAN), and other marketers, also said they stayed away from kerosene importation because of outstanding subsidy arrears being owed by the Government.

Source: The Guardian

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