OIL AND GAS SUPPLIERS WANT FOREX INTERVENTIONS AND TAX REVIEWS IN RESPONSE TO THE FUEL CRISIS.

The oil and gas sector of the economy asked expert to intervene to the fuel crisis of the economy. The crisis has been a long-time problem of the country, despite the company being a producer of fuel, still they still lack fuel and still get it in high prices.

As at last two weeks, prices of selling oil in the country skyrocketed which lead to the unavailability of petroleum in the country.

The Natural Oil and Gas Suppliers' Association of Nigeria (NOGASA) has asked for foreign exchange interventions as well as a review of tax policy, among other things, to mitigate the crushing effect of high fuel prices on the businesses of its members.

While reading the communique released at NOGASA's 2nd annual National Executive Council (NEC) and stakeholders meeting in Abuja, national president Benneth Korie said the association has resolved to visit President Muhammadu Buhari to seek his intervention in the growing crisis issues in the petroleum industry, which has resulted in acute scarcity of Petroleum Motor Spirit (PMS), also known as petrol.

Remember that the group had warned that 75% of filling stations and companies were on the verge of closing down because diesel, which drives their operations, now sells for N850 per litre, eroding whatever profit they might earn.

While applauding the federal government for raising the bridging cost for freighting petroleum products, Korie stated that the increase only applies to transportation and does not include administrative costs, which have risen dramatically due to the high cost of diesel used to power their filling stations.

He urged the Central Bank of Nigeria (CBN) to provide their members with access to foreign exchange for the purchase of diesel at the official rate rather than purchasing it on the black market, which raises the price at which it is supplied.

Other interventions required to save Nigeria's downstream oil and gas industry from total collapse, according to the association, include rebuilding and revitalizing the country's four refineries, special interventions such as the Central Bank of Nigeria's (CBN) provision of dollars to petrol importers, streamlining taxes to avoid multiple taxations by the Federal Inland Revenue Services (FIRS), and the establishment of an Energy Bank through an Act of the National Assembly, among others.

“NEC/Delegate and stakeholders agreed that the association should make a courtesy visit to the President of the Federal Republic of Nigeria to discuss some of the concerns listed below and the way forward.”

“The Association urges the national legislature to reconsider taxation policy (i.e. VAT) as it impacts the supply and distribution chain of petroleum products.”

“The organization urges the appropriate sectors of the national legislature to approve a law for the formation of an energy bank to facilitate transactions in petroleum products and oil and gas sectors.”

“That the federal government of Nigeria should repair the four (4) refineries in Nigeria in order to reduce reliance on importation of refining products and to alleviate the high cost of petroleum products in Nigeria.”

That the CBN provide the organization, through its business arm, with all necessary support in importing AGO and other items into the nation at a reasonable price.