Oil marketers seek removal of VAT on diesel importation

The Federal Government has been urged by oil marketers to halt the Value Added Tax on diesel because it will place an even greater burden on Nigerians.

During a Tuesday interactive session with journalists in Lagos, Olumide Adeosun, Chairman of the Major Oil Marketers Association of Nigeria and CEO of Ardova Energy, made the request.

He said that temporarily exempting fuel from VAT would ease the financial strain on the general public, particularly in light of the rise in petrol costs.

He underlined the requirement for an ongoing welfare programme for citizens.

Adeosun highlighted the importance of productivity in the country’s development and called on the government to address the issues of insecurity, productivity in the oil and gas sector, and the high cost of food and transportation.

Also Read: NNPC REVEALS IMMINENT CHANGES TO NIGERIA’S OPEC QUOTA

He urged the government to introduce subsidies on transportation and power and tackle the challenge of crude oil theft.

According to him, MOMAN members have the capacity to import petrol into the country, as such they should be permitted to import petrol and take off the importation burden from the Nigerian National Petroleum Company Limited before local refineries commence production.

“The reality is that many of us have importation licenses that have never lapsed. We renew them on a quarterly basis via the NMDPRA portal. Some of us are also importing diesel, so we need these licenses.

“The licenses cover multiple products such as ATK, PMS, and AGO. The regulator will tell us that we need them even when we are receiving products from the Nigerian National Petroleum Company Limited, particularly on the high seas,” he said.

Adeosun also emphasised the need for efficiency in the importation and delivery operations process to offset the shortcomings in forex rates.

“That has often been the case when aligning with the NNPCL operating regime. Efficiency has always been at the forefront, and subsidies will absorb all of that. As for us, we own the vessel, depot, trucks, and retail outlets. So, we can afford to optimise efficiency,” Adeosun noted.