Outrage over new levies in Nigeria’s oil industry

New levies introduced last week in the oil industry by the Federal Government has continued to attract condemnation from stakeholders in the country.

The Department of Petroleum Resources, DPR, now known as Nigeria Midstream and Downstream Petroleum Regulatory Authority, announced the new levies described as untimely when Nigerians are currently grappling with socioeconomic challenges imposed on them by the removal of fuel subsidy.

The levies were introduced by the regulatory authority after the removal of the fuel subsidy which has adversely affected the lifestyle of Nigerians.

Findings by DAILY POST showed that license fee for a new petrol station formerly N31,500 now attracts N100,000, while suitability fee cost N100,000 from the previous amount of N31,500.

Leak test which formerly cost N31,500 per tank without consultant charges now attracts N150,000 per tank and about N2 million for renewal of license whether the petrol station is functional or not among other levies imposed by the regulatory authority.

Reacting to the development in Ilorin on Friday, Kayode Folorunsho, Managing Director of Ara Oje-Oil, Nigeria Limited, Ibadan Depot, criticized the new levies, warning that the independent petroleum marketers may be forced out of business.

He expressed dismay that the levies were imposed without prior knowledge or meeting with the stakeholders to explain the rationale behind the new policy shortly after the removal of the fuel subsidy by the federal government.

Kayode described the new levies as “additional hardship on the oil marketers as sales dropped drastically after the removal of the fuel subsidy by the government.

“With eight years of President Muhammadu Buhari’s administration, no functional refineries and depots, and yet new levies are put in place now despite all we have gone through all these years,” he added.

In the same vein, Segun Oladeji, the Managing Director of S.O Oladeji Petroleum, Ilorin, argued that “this is not the time for any increment because the present economic situation is not palatable.

“Marketers are just struggling to remain in the system and this demonic policy is coming. The action by the regulatory authority is purely a tactical way of eliminating us from the business to pave way for the bourgeouis to take over for the sake of the political class.”

Segun said, “the picture looks more of terrorists mission against the survival of marketers in the oil business.”

He said the increment is not reasonable, hence, the need for marketers to resist the levies, while the leadership should act decisively on the issue before it gets out of hand.

“We cannot continue to be silent on government policies that are affecting our sources of livelihood,” he asserted.