Lagos — The Depot and Petroleum Products Marketers Association[DAPPMA],has said that it currently import about 70 per cent of Automotive Gas Oil (AGO) otherwise known as diesel and 10 per cent of Premium Motor Spirit (PMS) requirements for the country.
Chairman of DAPPMA Sylvenus Okoli, who disclosed this in a statement made available to Daily Trust yesterday noted that the companies also employ over 20,000 Nigerians with its multiplier effect of excluding contractors and beneficiaries.
"By its operations and business, constitutes a major player in the cabotage regime in Nigeria coastal waters, a product of the government avowed policy of local content," said.
He described recent reports over high price of diesel as sundry allegation and falsehood.
He blamed price distortions in the downstream sub-sector on the imbalance between demand and supply of petroleum products.
He also attributed the distortions to differential cost between imported and locally sourced products; inability of the economy to absolve subsidies for all petroleum products and absence of effective as well as strong control mechanism to ensure that subsidized products get to the final consumers.
Also speaking, Managing Director, Techno Oil Limited and a member of DAPPMA Mrs. Nkechi Obi disclosed that 70 per cent of the AGO, a deregulated product consumed in the country currently is being imported in a ration of 7:3 between Dappma and major marketers.
She said that industry operators face serious challenges in bringing in the products to their depot facilities due to inadequate port infrastructures.
She mentioned that the problem of infrastructural constraints make operators incur high cost to deliver products to the depots.
Other problems listed include lead time between payment and loading of PPMC and 90 to 120 days period for loading of products at PPMC depots, costs of demurrage, freight, port dues and bank charges.
She added that the price of Dual Purpose Kerosene (DPK) is presently partially regulated by the federal government and that until recently 100 per cent of the product consumption in the country was supplied by PPMC.