Oando a major player in the downstream sector of the oil industry with a vast network of infrastructure and large distribution footprint, says it will take advantage of opportunities offered by the recent review of petrol pump price to boost its activities.
The company said it will be able to leverage on its strong export trading business and achieve operational efficiencies through economies of scale.
Oando said it is more significantly positioned to gain strong financial control with the elimination of fixed allocations and petroleum subsidies, to essentially improve its revenue base, cash flows and subsequently its bottom line.
The company says that deregulation reduces the company’s exposure to currency risks and the problem of delayed and unpaid subsidies adding that with an extensive and efficient distribution network it will further guarantee the constant and timely supply of petroleum products nationwide.
It noted that the upward adjustment on fuel prices has given marketers the ability to freely import PMS at an exchange rate of N285/$ and sell within a price band of N135 – N145 per litre.
The company view this as an overall positive for the downstream sector, as marketers will no longer have to rely on allocations before importing petroleum products and consequently will not be burdened with the prolonged process of claiming back subsidy payments from the Federal Government.