‘Non-payment of subsidy claims hampering fuel importation’

The pockets of fuel scarcity being experienced in the country is a result of Federal Government’s non-payment of subsidy claims to oil marketers.
According to chief executive officer of Integrated Oil and Gas, Captain Emmanuel Iheanacho, 70 percent of eligible importers have stopped importation of Premium Motor Spirit, PMS, also known as petrol.
Iheanacho, who disclosed this at the 9th edition of Oil Trading and Logistic Africa Downstream in Lagos, blamed the current scarcity of petrol on the non-payment of subsidy and refusal of banks to extend credit lines to importers.
He said interests on bank loans to oil marketers for financing of fuel importation have grown huge, forcing banks to with-hold funding to oil marketers.
He urged the Federal Government to use the over $6 billion spent on fuel subsidy annually to encourage net importers of petroleum products to become net refiners of crude oil.
“We don’t need the subsidy money, government should create an enabling environment for net importers of petroleum products to build refineries and refine our crude oil.
“Currently, I have gone ahead to secure licence to commence refining business in the country, and it is approved by Department of Petroleum Resources,” Iheanacho said.