Oil Marketing Companies are anticipating pump price increases in petroleum products as a result of ‘operational challenges’. The three major oil marketing companies (NP, Leone Oil and Total) confirmed yesterday that they are currently running their businesses on a huge loss margin. “We cannot continue to do business if the current pump prices of petroleum products are not adjusted upwards”, a spokesman for the oil marketing companies told the Global Times last night.
Several meetings have been held between oil marketing companies’ representatives and senior government officials in order to try and avert a possible fuel shortage in the country.
For obvious reasons, the Government has been very reluctant to allow the oil marketing companies to increase the prices of petroleum products.
Last week, representatives of the oil marketing companies met with President Julius Maada Bio at State House and informed him about some of the operational challenges they are facing in the industry.
It has been confirmed that NP-SL (the biggest oil marketing company in the country) has run out of stock but they are expecting a vessel carrying petroleum products to arrive in the country this morning in order to avert a possible fuel crisis.
The last fuel price adjustment took place in January this year. One senior oil marketing company executive told the Global Times last night that the more they sell at the current prices, the more losses they make.
Several attempts made by the Global Times to contact officials of the PRA (Petroleum Regulatory Agency) proved unsuccessful over the weekend.
Source – Global Times Newspaper Online