Oil deal exceeding expectations…countries cutting more than agreed – OPEC

The Organisation of Petroleum Exporting Countries (OPEC) says the historic oil deal sealed in December is yielding more results that expected.

The Vienna-based oil cartel, said some countries party to the deal are cutting production levels below the points agreed at the December accord.

In its first bulletin for 2017, OPEC said 24 countries have joined in turning a new page in the oil history of the world.

Quoting Alexander Novak, minister of energy of the Russian Federation, OPEC said “the results we are observing … are exceeding our expectations. In fact, many countries are going beyond what has been agreed in December in working strongly to the letter in the spirit of the ‘Declaration’.”

Via a commentary on the bulletin,  OPEC said the projection of Mohammed Barkindo, its secretary-general — that the world was about to turn a historic page in oil history — is now becoming a reality.

“Just a few days after the landmark ‘Declaration of Cooperation’ was signed in December, a delighted OPEC Secretary General, Mohammad Sanusi Barkindo, said at the Petrotech 2016 Conference in New Delhi, India that the world was on the verge of turning a historic page in global oil.

“Of course, that was before the OPEC/non-OPEC agreement came into force on January 1. Following the positive outcome and confidence expressed at the inaugural meeting of the monitoring committee, the Organization’s chief executive might want to rephrase that statement to ‘has turned’ a historic page.”

FG still owing oil marketers N300bn subsidy arrears – Forte Oil Boss

The federal government is yet to pay over N300 billion subsidy claims of major oil marketers for fuel imports between 2014-2015, says Akin Akinfemiwa, group chief executive officer of Forte Oil Nigeria.

Akinfemiwa made the disclosure on Thursday when he appeared before the house of representatives ad hoc committee investigating debts owed to the Petroleum Pipeline Marketing Company (PPMC) by oil marketers.

According to the oil chief, his company owes N5.9 billion to the PPMC but was also being owed N13.8 billion in subsidy claims.

He informed the Abdullahi Mahmud Gaya-led committee that steps were being taken to settle the subsidy arrears by the federal government.

“So far, the government, led by the Chief of Staff to the President invited us to a meeting with other stakeholders to address two issues. One was to continue petrol supply, and two was for Federal Government to pay its debts. For the debts, a committee was set up to settle them.

“The total stands at over N300 billion. Right now, we cannot even do much, but we do not want a situation where there will be queues in the country,” Akinfemiwa said.

 

Source: The Cable

Marketers Accused Of Raking In Profits Selling Aviation Fuel As Kerosene

As the price of kerosene continues to soar because of inadequate supply, marketers have been accused of selling Jet A1, better known as aviation fuel, as kerosene, in the process making a kill of N50-N100 per litre.
The diversion of the product to fuel outlets where it is sold as household kerosene has also been blamed for the scarcity of Jet A1 and several flight cancellations and delays in the aviation sector in the last one month, according to reports..
Kerosene and jet fuel are nearly identical in every way except for a few additives in modern jet fuel, with industry experts describing the latter as nothing other than cleaner kerosene with no sulphur content.
However, the scarcity of foreign exchange in the country has made it very difficult for oil marketers to import and supply petroleum products that would sufficiently meet the needs of consumers.
As such, several marketers have started diverting Jet A1 to fuel outlets where it is sold as kerosene at a higher price than aviation fuel.
Aviation fuel sells for between N198 and N200 in Lagos while kerosene goes for N200 to N300 per litre.
Investigations revealed that marketers now prefer to sell Jet A1 as kerosene after degrading it and that explains the scarcity of aviation fuel in the past one month, leading to flight cancellations and delays.
Informed sources confirmed that aviation fuel is highly refined kerosene with zero sulphur, which when used for cooking leaves the pot without soot.
But instead of importing kerosene, oil marketers import aviation fuel because almost all modern refineries in the world no longer refine kerosene owing to the low demand for the product as a heating oil in several countries.
However, Nigeria’s refineries, which were built between the 1960s and 1980s still produce kerosene and unlike refining plants in other parts of the world, the Nigerian plants have not been upgraded to refine only diesel, petrol and Jet A1.
A seasoned aeronautical engineer and pilot, who operates a non-scheduled flight out of Lagos, said at the weekend that the current scarcity of aviation fuel would persist until marketers and the Nigerian National Petroleum Corporation (NNPC) begin to import sufficient kerosene to meet consumers’ demands.
The source said that every jet engine can use kerosene, but Jet A1 is of higher quality because it has no sulphur.
Credit: Thisday

FG Pays N48.2bn Subsidy Arrears To Marketers

The federal government last week paid N48.2 billion outstanding subsidy arrears to oil marketers as claims for 2015 to enable them import petroleum products and meet up with their other financial needs, the Ministry of Finance revealed on Tuesday.

A statement issued by the Director (Information) in the ministry, Salisu Na’inna Dambatta quoted the Minister of Finance, Mrs. Kemi Adeosun to have said that the federal government authorized the Debt Management Office (DMO) to pay the claims less tax liability of N5.171 billion, which was computed by the Federal Inland Revenue Service (FIRS).

“The gross total outstanding subsidy claims accruable to the oil Marketers for 2015 stood at N48, 207, 176, 262.44, while deductable tax liabilities payable to the Federal Inland Revenue Service stood at N5, 171, 186, 373.05 only.

“Giving details of the payments, Mrs. Adeosun stated that Oil Marketers without Tax Liabilities were paid in full, while Oil Marketers with net subsidy claims and FIRS liabilities were paid net claim after deduction of tax liabilities.”

Credit: Thisday

Petroleum Marketers To Get Outstanding Payment Next Week– Kachikwu

The Minister of State for Petroleum, Dr. Ibe Kachikwu, has assured petroleum marketers that outstanding payment for products imported would be made next week.

Dr. Kachikwu spoke after a tour of service stations and depots in Lagos on Tuesday.

He was accompanied by the Managing Director of Pipelines and Product Marketing Company and Department of Petroleum Resources (DPR) officials.

The Minister said there was enough petrol to dispense and wondered why cases of scarcity persisted.

Dr. Kachikwu, however, admitted that there was a shortfall in supply, as a lot of marketers were not bringing in products because they were owed subsidy money.

Credit: ChannelsTV

Fuel Scarcity: Imo Lawmakers Set Up Taskforce To Check Marketers

The Imo State House of Assembly has set up a joint taskforce to monitor independent oil marketers and ensure that they stop taking undue advantage of the present fuel scarcity.

While the fuel scarcity persisted, the lawmakers said it was concerned about the groaning agony faced by Imo citizens in getting fuel, as oil marketers had exploited the masses.

The taskforce is made up of some lawmakers, Department of Petroleum Resources (DPR), Independent Petroleum Marketers, and Ministry of Petroleum in the state.

They were also mandated to see how the fuel crisis in the state could be alleviated.

At a meeting with all stakeholders in the oil sector held at the Imo state House of Assembly in Owerri, the Chairman, House Committee on Petroleum in the Imo State House of Assembly, Henry Ezediaro, expressed displeasure with the sharp practices by independent oil marketers.

The meeting pointed out that oil marketers were selling petrol at 200 Naira and above which is far above the Federal Government’s approved price of 87 Naira.

Credit: ChannelsTV

Kachikwu, Marketers Call for Deregulation of Petrol

The Nigerian National Petroleum Corporation (NNPC) and oil marketing companies in the country have insisted that the price of petrol should be deregulated to ensure sustainable development in the downstream oil sector.

The corporation has also restated its commitment to the construction of a 1,350 megawatts (MW) capacity Abuja power plant and a 900MW capacity Kaduna power plant in partnership with reputable international power producers.

Speaking on Thursday in Lagos at the 2015 conference of the National Association of Energy Correspondents (NAEC), oil marketers and the Group Managing Director of the NNPC, Dr. Emmanuel Ibe Kachikwu, said the speedy implementation of deregulation would encourage inflow of private sector and international investment into the country.

In his address titled, “Energy Crisis and Sustainable Development in Nigeria: The Way Forward”, Kachikwu noted that the subsidy regime creates distortions in government revenue distribution as a result of round tripping and unnecessary carryover of expenditures every year in a way that is difficult for government to control or sustain.

“Furthermore, the federal government is not in control of the factors that influence retail fuel price, particularly fluctuations of crude oil price at the international market. Deregulation policy is essential to the transformation and growth of the downstream sector of the oil and gas industry,” he said.

Read Morethisdaylive

FG Slashes Import Licenses To Oil Marketers From 43 To 29

The Federal Government has issued licenses to import refine petroleum products to 29 marketers in a bid to end the fuel scarcity witnessed across the country.

The third quarter approval for import allocations to 29marketers signaled a significant reduction in the number of marketers previous issued with such allocations.

Previously, 43 marketers were given import allocation but the significant reduction may be seen as a way of blocking leakages in oil andgas sector as promised by President Muhammadu Buhari.The 29 marketers include the Nigerian National Petroleum Corporation (NNPC) which in the last couple of months struggled to sustain supply.

It was gathered that the approval was given by President Muhammadu Buhari to the Petroleum Products Pricing Regulatory Agency (PPPRA) to allow NNPC and other oil marketers to import fuel into the country this quarter.

The third quarter import allocation is thought to be around 1.6 million metric tonnes of petrol, a source in PPPRA disclosed.

NNPC,NIPCO Plc, Oando Plc, Conoil, Mobil Oil, Masters Energy, Techno Oil and Folawiyo Oil and Gas, Total Nigeria Plc and Mobil Oil Plc are some of the companies granted imported allocations.

Although the PPPRA was yet to issue an official statement on the third quarter import allocation, another source in PPPRA said the agency now expects major oil marketers to resume importation of petrol after extracting a promise from the government that outstanding claims on subsidies will be paid.

An industry source who pleaded anonymity confirmed the allocation to the Tribune Online in a telephone conversation.”We got our allocation on Friday and I’m sure there are 29 of us as against the previous 43 marketers issued licenses to import,” he said.

Refineries To Produce 20% Of Petrol Consumed Daily – NNPC

The 125,000 bpd Warri refinery which resumed last week after maintenance is expected to run at 60,000 bpd, the NATION says.

Group Executive Director of Refining and Petrochemicals, Ian Udoh said six cargoes are expected to be received a month of Nigerian Bonny Light and Escravos crude oil to run 180,000 barrels per day (bpd) or 40 per cent, of Nigeria’s total refining capacity.

Ian-Udoh-360x354.jpg

The Port Harcourt complex will start ramping up over the next two weeks but only the newer of the two plants at the site is functional and at 90,000 bpd versus its 150,000 bpd capacity.

Mr Udoh said he expected to produce 8 million litres a day of petrol, accounting for about 20 per cent of the estimated consumption.

The last refinery to restart will be the Kaduna Refinery as it will take about two more weeks to repair the pipeline bringing crude from the oil-rich delta in the South south.

The Nigerian National Petroleum Corporation (NNPC) hopes that its domestic refineries can cover 20 per cent of domestice product needs, as Nigeria has wholly depended on subsidised fuel imports and crude-for-product swap agreements and suffered acute fuel shortages since February.

Source – www.nigerianbulletin.com

Fuel Scarcity To Continue As Importers Run Out Of Bank Credit!

The scarcity of refined petroleum products, especially petrol, may continue across the country for the unforeseeable future because marketers have stopped importing the product due to the reluctance of the banks to provide them with credit.

It was also learnt that as of May 29, 2015, the amount being owed all the oil marketers by the Federal Government was N291.7bn.

Our correspondent gathered that the refusal of the banks to provide credit to the marketers had adversely affected the business of some of them, as many were already contemplating leaving the venture.

Sources in the sector, who spoke with our correspondent in Abuja on Sunday, said that the refusal of
the banks to provide additional loans to the marketers could be due to the Federal Government’s delay in paying the huge subsidy debt being owed the fuel importers.

Although they admitted that the Nigerian National Petroleum Corporation was currently the sole importer of petrol, the quantity of fuel being consumed in the country was so high that the NNPC might not be able to handle it solely.

“Banks are refusing to give some marketers loans to import petrol and they are hoping that the present administration will intervene, particularly by paying the huge subsidy debt, because the NNPC alone may not be able to shoulder all the fuel need of Nigeria,” an official at the Federal Ministry of Petroleum Resources, who spoke to our correspondent on the condition of anonymity, said.

Confirming this, the Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, told our correspondent that members of the group were not importing petrol again, because the banks had yet to open credit lines to them.

Anambra Indigenes Suffer Over Closure Of Filling Stations, As Petrol Sells For N500 Per Litre

Anambra people are currently not in a happy mood as fuel now sells for N500 per litre in the state. This is due to the closure of most filling stations in protest over what they described as high levies imposed on them by the state government. In order to protest the high levies, most filling Stations shut down leading into fuel scarcity in the state.

Black market sellers however resulted in selling theirs at N500 per litre for those who can afford it, a situation the indigenes have described unbearable.

It is said that the state government had imposed a ‘huge’ levy on owners of filling stations, which they must pay annually and that is what they are kicking against.

Fresh Fuel Scarcity Looms As Marketers Demand N291bn Subsidy Payment

All have not yet settled in the over three weeks acute shortage of petrol in the country.

This time the Depot and Petroleum Products Marketers Association (DAPPMA) is claiming that government is yet to indicate when it will pay the outstanding subsidy of about N291billion

The DAPPMA in a statement by its executive secretary, Femi Adewole, in Lagos yesterday, recalled the aftermath of the Senate Committees’ meeting with major petroleum industry stakeholders which successfully persuaded the petroleum tanker drivers (PTD), NUPENG and NARTO to call off their strike on May 25, 2015, and resume loading of fuel from the various depots that had stock.

Depot owners and other fuel importers under the ‘petroleum subsidy scheme,’ he said, were still being owed billions of naira in unpaid subsidy reimbursement, interest on delayed payment and foreign exchange differentials. This much, Adewole said, was expressed to the DAPPMA and MOMAN by the former minister of finance and coordinating minister for the economy, Mrs Okonjo Iweala, in her letter to both associations, a copy of which she also released to the Senate Committees for reference.He stated, however, that the letter did not state the timeline for the re-verification exercise which the minister instituted on the amount she disputed and also did not state the expected date of payment which the petroleum subsidy fund (PSF) participants had been clamouring for in all the meetings held with her since February 2015.

According to him, “It should be noted that this is the first time since the establishment of the petroleum subsidy fund scheme that marketers will not have ready and easy access to fuel import loans and it is also the first time that commercial banks will notify importers that based on CBN regulations, importers have attained their credit ceilings with their various banks and would have to make some refunds on the existing loans to the sector prior to being funded for petrol imports. Unfortunately the expected refund to the banks is yet to be reimbursed by the federal government.Due to debts owed transporters by marketers, who have been experiencing serious financial stress due to outstanding debts owed them by the federal government as a result of petrol imports under the petroleum subsidy scheme, the PTD, NUPENG and NARTO had at various times protested non-payment of their freight charges by withdrawing their services,” he said.

He regretted that the action of the transporters had caused some persons to insinuate that marketers are blackmailers holding the nation to ransom via a strike about which they know nothing.

“The DAPPMA’s initial assertion on petrol importers and marketers who participate in the petrol subsidy scheme and are therefore entitled to subsidy reimbursement is based on the widely circulated payment list from the Federal Ministry of Finance which was published in several newspapers. The publication detailed payees and other PSF scheme participants even when there was no payment due to them and the name of Capital Oil and Gas Industries Limited was conspicuously missing,” Adewole declared.

Creditleadership

Marketers Assure Availability Of Fuel Next Week

Marketers of petroleum products in the country have said the current supply challenge may not end this week.

The marketers also confirmed that loading of petrol had resumed across board with members of the Major Oil Marketers Association of Nigeria and Depot and Petroleum Products Marketers Association driving the exercise.

A marketer said that the Pipelines and Product Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, had pumped in additional product into the system.

But he noted that major marketers had yet to start the importation of petrol. Some of the marketers had resorted to doing overnight loading of the product to further ease the supply.

Read More: Punch

Okonjo-Iweala Vows Not To Pay Marketers

The federal government is spoiling for a fresh showdown with oil importers over subsidy payment.

This is coming as there is no end in sight yet for the current face off between the two sides that has grounded the nation for several days now.

Finance Minister Ngozi Okonjo-Iweala yesterday accused them of submitting to government suspicious payment claims to the tune of N159billion in exchange rate differentials.

The payment claims, according to her, reeked of fraud.

She told reporters at a farewell meeting in Abuja that she would not approve payment of the claims unless verified by the relevant authorities.

“Marketers were asking for N159 billion for exchange rate differentials from the outstanding N200 billion. There has been so much fraud and scam so I have refused to sign for that money but have agreed that a committee be set up involving the Central Bank of Nigeria (CBN) to verify marketers’ claims,” she said.

”Marketers just want to make Nigerians suffer,” she added.

The minister also slammed the marketers for allegedly blackmailing Nigerians and asked the people to resist.

Insisting that the current fuel scarcity has nothing to do with paying the marketers, she said: “They are making a lot of money from black market activities, people should rise up against the blackmail of oil marketers.

“I will not pay the N159 billion without verification, Nigerians should not allow themselves to be blackmailed.”

The minister said there was something curious about the supply of and payment for Premium Motor Spirit (PMS).

Her words: “I cannot say that the problem is due to not paying marketers, the process of paying marketers is always a rolling process and there has never been a time government reduced its financial obligation to marketers to zero.

“In a year where so much effort has been made to pay marketers including prioritizing their payment as subsidy claims in favour of other financial obligation like paying contractors, yet fuel scarcity still persists at this  particular point in time suggests that something suspicious is happening.”

She responded to the claim by Vice President-elect, Prof. Yemi Osinbajo, that the Jonathan administration will be leaving a $60 billion debt burden for   the in-coming government.

She said that Nigeria’s total debt indeed stands at $63.7 billion but it is the totality  of all the debts incurred by successive  governments since 1960.

“No $60 billion was accumulated under the Jonathan administration,” she said.

She added: “Current debt stock includes both federal and state governments debts made up of $9.7 billion external debt or 15 per cent of total debt stock and $54 billion or 85 per cent domestic debt stock.

“Nigeria is still repaying the multilateral loans it collected on concessionary terms with as long as 40 years maturity periods.”

The breakdown of the accumulated domestic stock is  $18.575 billion outstanding by 2007, $17.3 billion accumulated between 2008 and 2011 and $18 billion accumulated between 2012 and 2015.

“This is so because of something that happened in 2010 because of the salary increment under Yar’Adua administration which increased civil servants salaries by 53 per cent.

“Those bonds have been rolled over and government had to weather the difficulties because resources to fund such increase were not there,” she said.

She described Nigeria’s debt to GDP ratio as one of the lowest in the world.

On the domestic debt stock, she said 20 per cent is owed by state governments with Lagos state having an external debt burden of N1.169 trillion while the balance of 80 per cent belongs to the federal government.

Reviewing her tenure, Okonjo-Iweala said she has no regrets in serving the country and declared that anyone called upon to serve Nigeria should consider it a privilege.

“Some people criticise from afar but some came home in spite of challenges to serve,” she said.

She faulted suggestions that the economy was mismanaged, saying: “The economy is reacting to the forces of demand and supply but there is hope for the country. Only that people will have to make sacrifices.

“The out-going government, she said, achieved a lot but she lamented that “there are very serious attempts to rewrite history.”

Meanwhile, there is still no respite for motorists and commuters across the country as the fuel scarcity persisted yesterday.

Most filling stations remained shut and only a few managed to sell but at exorbitant prices.

On the other hand black markets continue to thrive with operators charging as much as N350 per litre in parts of Lagos.

Creditthenationonlineng

‘We Have No Money To Import Fuel’ — Marketers

There are indications that the current fuel scarcity may not abate unless the Federal Government pays the outstanding N200m reportedly being owed the oil marketers as subsidy claims.

The oil marketers, who confirmed to our correspondent that they had stopped importation, said they could not continue with fuel importation as result of inadequate funds.

They spoke through the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore.

Olawore, along with the Nigeria Union of Petroleum and Natural Gas Workers, also denied the report that they were on strike.

He said they were still waiting for the Federal Government to call them to another roundtable on how
to pay the N200bn fuel subsidy owed them.

Olawore said, “We are not on strike. People are just painting us the way they want. We are not importing because we don’t have the money to buy the products. The government has not invited us. The only thing we have heard is the resolution of the Senate on Thursday and I think that they are going to invite us soon.”

Out of N356.2bn subsidy the government reportedly owed oil marketers, the Ministry of Finance paid the sum of N156bn about two weeks ago.

With about five days to the handover of power to a new administration at the federal level, tanker drivers in the country have also stopped lifting fuel from the depots, leaving many filling stations without the product and others selling at exorbitant prices.

The General Secretary, NUPENG, Mr. Isaac Aberare, said tankers drivers would start lifting the product as soon as they received the directive to do so, insisting that they were not strike.

He said, “If there are products in the depots, we will go there and load. Remember that the Lagos State Government gave tankers drivers 48 hours to leave the road instead of clogging the whole road and making navigation difficult; we have complied with that instruction. Any time there are products, we will go and load.”

In its response to the lingering fuel scarcity in the country, the Senate on Thursday directed its Committee on Petroleum Resources (upstream and downstream) to commence a full investigation into the causes of the persistent fuel crisis.

The directive was made following a motion by the Deputy Senate Majority Leader, Senator Abdul Ningi.

Ningi said, “We need to know whether fuel scarcity has come to stay. We need to know whether it has become part of our lives. We need to plan.

“By planning and talking about it, we are now sensitising Nigerians to brace for the impending issue of fuel scarcity whether it is going to be here permanently or it is temporary.”

Source: The Punch

Why We Create Fuel Scarcity- Marketers

The lingering fuel  crisis may continue till the May 29 handover date to Gen. Muhammadu Buhari government, as oil marketers have resorted to hoarding the product to force government to pay the outstanding debts as claimed, Vanguard learnt.

This is coming on the heels of the fact that the Nigerian Railway Corporation, NRC, is yet to fulfill its promise to begin evacuation of petroleum products from tank farms and depots in Apapa area nine months after.

It was learnt that marketers resorted to hoarding fuel due to fears that they might not be paid their outstanding subsidy claims for imported fuel, and as a result, decided to create the scarcity as a way of forcing the government to speed up the process of effecting payment of the subsidy.

A marketer, who preferred anonymity, told Vanguard that it is better to hoard petrol so as to force the government to agree with their terms before the change in government.

He said: “My friend, we are not sure what the incoming government will do with us as from May 29. We need to force the present government to pay us our outstanding claims now. We love this country, but we need to be sure we have products now, because we do not know what will befall us in the next two weeks.”

Another marketer also corroborated: “We are all aware how a new government behaves in Nigeria. There is uncertainty of what the incoming government will do with us as regards the subsidy. If you were in our shoes, wouldn’t you make sure you get every kobo owed you by the present administration? What better way can you do that than to keep what you have?”

Vanguard also learnt that the marketers decided to create scarcity in order to compel the government to pay them the losses they incurred when the government reduced the pump price of petrol from N97 per litre to N87 per litre.

Read Morevanguardngr

Fuel Crisis: Marketers Deny Receiving Payment From Govt, Say Strike Continues

Despite the claim by the Federal Government that N156 billion was released on Thursday to oil marketers to facilitate the quick resolution of the current fuel crisis, the National Association of Road Transport Owners (NARTO), has said normal lifting of fuel will not resume till their members’ accounts are duly credited by the banks.

As at 4.35 p.m. on Thursday, the Executive Secretary, Depot & Petroleum Products Marketers Association(DAPPMA), Odufemi Adewole, told PREMIUM TIMES in a telephone interview that none of its members and their counterparts in the Major Oil Marketers Association(MOMAN), had confirmed receiving any payment.

“The money government said it was paying to marketers has not yet hit our accounts. So, there is little we can do about the situation,” Mr, Adewole said. “The money the Minister of Finance promised to pay us last February did not get into our hands till about four or five weeks later.

“If all members are not getting the money today, it means we have to wait till Monday. But, the truth is that nobody is going to call off the strike till the money is paid,” he added.

With Friday declared work-free day to mark workers’ day, it means consumers would have to grapple with terrible fuel supply crisis till next week when the payment may hit the marketers’ accounts.

Read More: premiumtimesng

Marketers Warn Of Impending Fuel Scarcity

Petroleum product marketers have warned of a looming scarcity of fuel following the inability of the Federal Government to pay the subsidy arrears for the importation of Premium Motor Spirit.

The marketers under the aegis of Major Oil Marketers Association of Nigeria warned that if the situation was not resolved on time, it could lead to another round of fuel scarcity in the country.

The association stated that despite previous assurances from the government to reimburse the marketers for under recovery as verified by the Petroleum Products Pricing Regulatory Agency, it had failed to honour the agreement.

Read More: Punch

Fuel Scarcity: FG to Pay $30bn Exchange Rate Differentials to Marketers

Minister of Finance, Ngozi Okonjo-Iweala, said on Wednesday that the Federal Government had agreed to pay 30 billion dollars foreign exchange differentials owed to oil marketers.

Ms. Okonjo-Iweala made this known on Wednesday in Abuja while briefing journalists after a meeting with the Central Bank, Petroleum Products Pricing Regulatory Agency, major oil markers and depot owners.

“The Federal Government has addressed all contentious issues with the marketers, such as the issue of the foreign exchange rate differentials.

“The Federal Government has agreed to pay the 30 billion dollars exchange rate differentials owed the marketers over the last couple of months.

“It is already in the process of offsetting the N185 billion debts owed the marketers with the issuance of the Sovereign Debt Note (SDN),” she said.

Ms. Okonjo-Iweala added that the Federal Government had been talking with the marketers within the last 10 days.

She added that the President wanted Nigerians to know that government was working on the situation and would resolve the issue in the shortest possible time.

Read More: PremiumTimes