FG summons oil marketers, plans to shut down equalization fund

According to Independent Petroleum Marketers Association of Nigeria’s National Controller of Operations, Mike Osatuyi, the Fund currently owes its members about N80 billion.

“We owe the Fund nothing because you would have deposited before you took the goods, not the other way around. But before the closure, the Fund owes us N80 billion, which will be paid. Over time, the money accumulated, but it is now no longer accumulating. After the downstream sector was fully deregulated, as specified in the PIA, the role played by the Fund came to an end, Osatuyi said.

He acknowledged that IPMAN had also been requested to reconcile its account with the Fund.

“Now that we have deregulated, the Fund is no longer necessary. The payment they owe us will likely occur before the accounts are eventually closed, though we are unsure of when. The procedure has started, and our members have been invited,” he continued.

PEF was established by Decree 9 of 1975 (as modified by Decree Number 32 of 1989, which is now chapter 352 of the Laws of the Federation). Its primary purpose was to compensate marketers for any losses they incurred while trucking products from depots to their filling stations throughout Nigeria. This was done in order to ensure that the price of petroleum products was uniform throughout the country.

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A source from the Nigerian Depots and Petroleum Products Marketers Association also confirmed that the invitation to the reconciliation meeting was extended to its members.

“They informed us that the Fund had already closed, and we were aware that it would close. Our members and other depot owners are now being asked to reconcile the account as we have reached this stage. As of today (Wednesday), when the meeting was held, they informed us that the account would be closed in the following 20 days.