The Petroleum Product Pricing Regulatory Agency on Tuesday attributed the current fuel scarcity in the country to the devaluation of the Naira.
The Naira was devalued from $1 to N155 to $1 to N199, with the effect that it sold in the black market at N233 to $1 last week.
This, the PPPRA contended on Tuesday, led to the refusal of commercial banks to open letters of credits for petroleum products marketers.
This was even as the Nigeria National Petroleum Corporation failed to appear before the Senate Committee on Downstream to show its budget performance for the 2014 budget and also defend its 2015 budget
The Executive Secretary of the PPPRA, Farouk Ahmed, however assured the Senate that the issue between the commercial banks and oil marketers has been resolved and the fuel scarcity will soon end.
Ahmed said: “The recent events have to do with delay in the arrival of cargoes.
“Non-arrival of cargoes made it difficult for petroleum motor spirit (petrol) to be delivered.
“What actually complicated it was the devaluation of naira – two times.
“The first one that took place on November 28 devalued Naira from N155 to N168 to $1.
“The second one that took place on February 18 brought the exchange rate to N199 to $1.
“These two developments brought a lot of confusion into the oil sector.
“Marketers were not sure of the actual delivery cost.
“We had to draw a new template as advised by the Central Bank of Nigeria.
“The delay we have now is caused by the November devaluation.
“But the reality now is that the policy is clear.
“The Minister of Finance, PPPRA and other agencies are working closely to ensure that outstanding bills are paid.
“And that one had been done now.
“Yesterday, we got an approval from the Budget Office for payment of all outstanding bills.
“We have adjusted the template now.
“We have to put the exchange rate at the interbank rate.
“Now, we have a direction.”
Speaking at the budget defence meeting, which was boycotted by the NNPC, the Chairman of the Committee, Senator Magnus Abe, was to also offer a platform for the Corporation to explain reasons behind the current fuel scarcity and possible way out.
Visible angry by the failure to appear of the Group Managing Director of the NNPC, Dr. Joseph Dawha, and other officials at the budget defence session, Abe said the committee was very disappointed with the NNPC’s action.
Abe, who directed the clerk of the committee to send another invitation to NNPC, said the corporation did not even have the decency to inform the committee of its planned absence at the budget defence session either through letter or phone call.
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