Oil Marketers Association Urges Government to Tame Exchange Rate Crisis

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on the federal government to address the escalating exchange rate crisis by adopting the N750/$ 2024 Budget exchange rate benchmark as its official rate.

During a press conference in Abuja, the national president of NOGASA, Benneth Korie, emphasized the need for payments for petroleum products to be made in naira to alleviate the continuous surge in prices.

Korie highlighted that the predominant use of dollars in trading by Nigerians, compounded by the rising exchange rate, poses a significant challenge to the modular refineries in the country.

He attributed the soaring cost of diesel and the high dollar rate as contributing factors to the increasing petrol prices.

He cautioned that unless immediate actions are taken by the government, the unfavorable business environment will likely compel petrol marketers to cease operations by the end of February 2024.

Korie pointed out the necessity of standard road infrastructure nationwide to reduce the demand for spare parts, which is driving up the need for dollars among petroleum product suppliers.

He expressed concerns over the withdrawal of services by the Nigerian Association of Road Transport Owners (NARTO) due to the exorbitant cost of diesel, cautioning that transporting petroleum products under such conditions is unsustainable.

Korie also discussed the challenges posed by high bank interest rates, which have pushed a significant percentage of oil traders out of business.

He urged the government to intervene promptly to address these issues, emphasizing the critical importance of refineries and the need to declare a state of emergency in the sector.

Korie hinted at a possible service withdrawal by oil marketers if their grievances remain unaddressed by the government before the end of the month.