Date: 2016-08-28

The Independent Petroleum Marketers Association of Nigeria (IPMAN) in Ilorin on Friday blamed fluctuating prices of kerosene and diesel in the oil downstream sector to the exorbitant and difficulty in obtaining foreign exchange.

It said the situation made it an arduous task for a number of marketers to import the product and dispense at affordable prices.

In an exclusive interview with journalists, IPMAN chairman in Kwara State, Alhaji Olanrewaju Okanlawon, explained that marketers have found themselves in an unpleasant situation of sourcing foreign exchange at official price to ship both kerosene and diesel into the country.

Okanlawon said a handful of marketers who could afford the price of forex in the parallel market were opportuned to import the essential commodity while in turn sell at prices they felt could profit them.

This is coming despite the Federal Government's withdrawal of subsidy on kerosene also known as Dual Purpose Kerosene and Diesel otherwise known as Automated Gas Oil.

The IPMAN chairman warned that the situation would persist with its attendant hardship except the government took the bull by the horn and allow participation of more dealers in the importation of the products.

He called on the government to find solution to the frequent forex crisis in the country, saying masses are usually at the receiving end.

Okanlawon also pleaded with the government to encourage more marketers to import the products with a view to forcing the price down, adding that there would be crisis whenever the demand was higher than the supply.

"The situation is the price of kerosene and diesel had risen up, coupled with the scarcity when the products are not forthcoming. Presently, we are going to Warri (in Delta State) to get the products. For kerosene, it is not found in Lagos. If you want to buy from those that have in Lagos (depots) now, it is now between N185 and N188 per litre.

"Some marketers go to Warri to get at N186.50k and N187. That is the situation. We are trying to encourage our people to go to where they can get (the product) at normal price so that it would bring the price down, because we realised the economic situation in the country was bringing hardship to the masses.

"We realised it is the masses that consume the kerosene and definitely, we want to see how the price is going to come down.

"My advice to the Federal Government is to encourage the marketers to import more. If there is excess supply, it would bring the price down. But as long as the demand is higher than the supply, the price of the product would be going up.

"Presently, you would discover that few marketers import kerosene. If it continued that way, the price would continue going up unless if the government encourage the marketers to bring in kerosene.

"Another factor is that many marketers could not access the forex. Definitely, there is restriction and it succinctly means that few people are able to import the product. And they are bringing it with the target of selling at higher price as a result of costly nature of forex. But if they flood the market with kerosene, the price would come down", Okanlawon said.

Source: HeraldNews