PRODUCERS TELL FG TO REMOVE FEES ON LOCALLY REFINED DIESEL

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Operators of modular refineries in Nigeria have urged the Federal Government to eliminate various fees associated with locally refined diesel, also known as Automotive Gas Oil (AGO). This request comes in response to the increasing cost of diesel, which has been negatively impacting various sectors of the economy, especially the downstream oil industry.

Diesel’s high price has made it challenging for oil marketers to transport products from the South to the North without raising their prices. To address this issue and reduce the cost of domestically produced diesel, modular refinery operators, under the Crude Oil Refinery-Owners Association of Nigeria (CORAN), have called for the removal of fees attached to the commodity. According to CORAN President Momoh Oyarekhua, these fees amount to approximately N9.80 for each litre of AGO or kerosene sold, contributing to higher market prices.

The call was made during a courtesy visit to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, in Abuja. This appeal comes at a critical time when queues for Premium Motor Spirit (PMS), commonly known as petrol, have worsened in the Federal Capital Territory and neighbouring Nasarawa and Niger states due to the shutdown of many independent retail stations lacking sufficient products for dispensing.

The high cost of diesel not only affects economic activities but also poses logistic challenges for oil marketers: hindering the movement of products from tank farms in the South to filling stations in the North. The operators emphasise that by removing the fees on locally refined diesel, the Federal Government can play a significant role in alleviating the burden of escalating diesel prices.

The President of CORAN, Momoh Oyarekhua, alleged that for every litre of AGO or DPK (kerosene) sold in the market, the cumulative effect of fees amounts to about N9.80: inevitably leading to an increase in the product’s market price. This situation has raised concerns among stakeholders in the downstream oil industry, prompting a collective plea for government intervention.

The modular refinery owners believe that this action will not only stabilise diesel prices but also have positive ripple effects on various economic sectors that rely heavily on the fuel. The citizenry is looking forward to how the Federal Government will respond to this call for policy adjustment to alleviate the burden on consumers and businesses alike.

 

 

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