The Nation Newspaper

Tag: Department of Petroleum Resources (DPR)

  • DPR vows to stop petrol diversion

    The Department of Petroleum Resources (DPR) in Sokoto State has restated its commitment to checkmate hoarding, diversion and selling of petroleum products above the control price.

    Mr Muhammad Makera, the Zonal Operation Controller in-charge of Sokoto and Kebbi States, made this pledge in an interview with the News Agency of Nigeria (NAN) on Wednesday.

    Makera said the department would continue to intensify its surveillance on illegal petroleum activities.

    He said that he had led officials on a monitoring exercise to fuel stations in Sokoto and Kebbi States, noting that from Sunday, no fewer than six petrol stations were sealed off  for various offences.

    The controller said that no fewer than 20 trucks were supplied to Sokoto State out of which 12 were for Sokoto metropolis.

    “There is no need of panic buying which may have resulted in the queues noticed in some petrol stations.

    “We noticed that there ought not to be scarcity, especially with the quantity of products being pushed out, so we have intensified surveillance.

    The controller added that the DPR would ensure that petroleum products distributed to fuel stations were sold to the public.

    He noted that any station found wanting is being sanctioned, adding that each pump machine sealed would attract N100, 000 fine as penalty beside other punishments.

    “Apart from ensuring that hoarding does not work, we shall ensure that sharp practices such as pump adjustment is stamped out,” he said.

    Read Also: FEC approves N1.4b for DPR building design

    NAN reports that there were queues in some fuel stations in Sokoto metropolis, as consumers spent some time before obtaining the products while some stations were locked.

    Mallam Abdulrahman Muhammad, the manager of Total fuel station at Fodio road in Sokoto, who spoke with NAN said the product, which was available in his station, was being sold to customers accordingly.

    Muhammad said the interruption in the supply, which was unusual to marketers, might have been the reason for some stations not getting the products as at when due, as well as reasons for queues in some places.

  • Marketers to build 10,000 gas plants in local councils

    The Federal Government is pushing forward a bill via the Department of Petroleum Resources (DPR) to force marketers of petroleum products to build new 10,000 gas filling plants in their stations across the country.

    The directive was aimed at deepening the use of LPG in the country, in addition to promoting the issue of clean energy as well creating jobs.

    Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, spoke in Abuja during the commissioning of Nigerian Army Welfare Limited by Guarantee, NAWLG/Gasland Nigeria Limited, LPG plant in Mambila Barracks, and the launch of LPG Micro Distribution Centres in Nigeria Army barracks and cantonments.

    Read Also: Marketers warn against imminent petrol scarcity

    According to him, the legislation  would increase cooking gas selling points across the country by about 10,000, which is about the same number of filling stations in Nigeria.

    Kachikwu said the Federal Government, through the Ministry of Petroleum Resources, was already working with stakeholders in the LPG value chain, and had set a target  to build at least one gas filling plant across all the 774 local government areas in the country within the next three years.

  • DPR to shut stations in Bayelsa for selling fuel N160 per liter

    The Department of Petroleum Resources (DPR) has vowed to shut down filling stations in Bayelsa State for selling Premium Motor Spirit (PMS) above N160 per liter.

    The department was disturbed that independent petroleum marketers in Yenagoa, the state capital, suddenly increased their pump price of fuel from the regulated price of N145 to N160 per liter.

    Speaking after an emergency meeting with independent marketers in the state, on Tuesday, DPR’s Head of Operations, Ibinabo Jack, derided them for the sudden increase in price.

    He said it was not justifiable as it was never supported by any regulatory body and warned that the affected stations would be closed down.

    He asked them to immediately revert to the original price of N145 per littre, or be sanctioned insisting that they had no reason to increase the price of the product.

    Read Also: FEC approves N1.4b for DPR building design

    He said: “I personally went round and discovered that all the filling stations were selling above the pump price. They were selling at the rate of N160 naira for PMS. We frown at that and condemn it. The sudden rise in pump price is not welcome by DPR.

    “DPR has not noticed any form of price increase and there is no directives for fuel pump increase. The pump price still remains at N145 per littre. From now after this briefing with the marketers, the DPR will not hesitate to impose stringent penalties upon anyone found selling above the pump price.

    “PMS at the depot as at the beginning of the week still reman N133, and so we are saying that marketers have no reason to say they have written to the authority or that they were granted approval by someone to sell above the pump price approved by the Petroleum Products Regulatory Agency (PPRA).”

    In his response, the Bayelsa state Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Erefemota Peters, said the increase was caused by hike in depot price.

    He said marketers in Bayelsa sourced products from the Warri and Port Harcourt refineries at about prices above N142.

    He said after including transport cost, there was no way the marketers in the state could sell at the government price.

     

  • DPR outlines achievements

    The Department of Petroleum Resources (DPR) has unveiled its achievements targeted at boosting the industry and making its operations transparent and accountable.

    The achievements include the establishment of technologies that will track online/real time of production volumes from the oil fields, terminals, the vessels taking them out for exports and their destinations.

    DPR monitors 19 oil fields online.The technology enables the Federal Government to know oil production. It also tracks movement of vessels bringing in petroleum products and ensuring there is no round-tripping of imports and sharp practices which substantially push up the estimated daily fuel consumption in the country and the subsequent subsidy payment.

    Some of the achievements include early oil lease renewals and recovery of royalties as well as reduction of cost of crude production to make Nigeria be at the same level with other oil-producing countries that have reduced their cost of oil production, among others.

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu, who unveiled the achievements in Lagos, said the technologies introduced by the DPR include the Crude Oil and LNG Tracking (COLT), adding that the achievements were worth celebrating.

    Kachikwu said the achievements were part of the results of reforms in the industry. He said: “I intervened with the approval of President Muhammadu Buhari to steward and supervise a lot of the interventions and changes in the oil and gas sector and the DPR and others have worked collaboratively with me in the last three and half years to see to some of the steps I have taken both the time I was the Group Managing Director of NNPC, but now I’m largely focused on the regulatory aspects of the sector.

    “My clear mandate when I became the Minister of State was to change the oil industry because we were deeply worried by what seemed like a value dip in the industry and the corruption that was all over the place and to track our resources, among others.

    “Therefore, we have launched a series of computer-based applications which will enable us to track volumes of crudes produced from various terminals and how those volumes or products are moved, whether they are going to vessels and where those vessels are going to. It is a vessel-tracking mechanism so that at any given point in time, you can tell on real time basis what the country has produced for the very first time. These applications will tell where the vessels have gone to in terms of export and say whether they discharge at the given points. We will also be able to say on forensic basis whether there are some suspicious movements of the vessels when they have products in them. We have also extended it to the downstream sector to capture everything that is brought into this country in terms of importation of refined products and track how they are distributed within the country. So, for the first time in this country, we have holistic IT data-based applications that enable us to do that.

    “We also launched the benchmarking system to track expenses and see how we can continue in our process to pull down the cost of producing oil in this country which is a major challenge for us. Given the oscillating price of oil globally unless we are able to do this, we produce all the oil and no make no money out of it. So, this is very helpful to us and we will be able to challenge the oil companies to match the very best practice internally and collectively match the best practices externally in terms of oil pricing. We have explained to you what we have done in terms of early renewals of oil leases and what we generated both in terms of forcing people to be concurrent on payment of outstanding royalties and what we generated in terms of current licences and early renewal basis.’’

    The minister added: “The few interventions that we have had include National Production Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what the country’s production is. We have also had the COLT, which is basically tracking of crude oil and liquefied natural gas (LNG).”

  • DPR outlines achievements

    The Department of Petroleum Resources (DPR) has unveiled its achievements targeted at boosting the industry and making its operations transparent and accountable.

    The achievements include the establishment of technologies that will track online/real time of production volumes from the oil fields, terminals, the vessels taking them out for exports and their destinations.

    DPR monitors 19 oil fields online. The technology enables the Federal Government to know oil production. It also tracks movement of vessels bringing in petroleum products and ensuring there is no round-tripping of imports and sharp practices which substantially push up the estimated daily fuel consumption in the country and the subsequent subsidy payment.

    Some of the achievements include early oil lease renewals and recovery of royalties as well as reduction of cost of crude production to make Nigeria be at the same level with other oil-producing countries that have reduced their cost of oil production, among others.

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu, who unveiled the achievements in Lagos, said the technologies introduced by the DPR include the Crude Oil and LNG Tracking (COLT), adding that the achievements were worth celebrating.

    Kachikwu said the achievements were part of the results of reforms in the industry. He said: “I intervened with the approval of President Muhammadu Buhari to steward and supervise a lot of the interventions and changes in the oil and gas sector and the DPR and others have worked collaboratively with me in the last three and half years to see to some of the steps I have taken both the time I was the Group Managing Director of NNPC, but now I’m largely focused on the regulatory aspects of the sector.

    “My clear mandate when I became the Minister of State was to change the oil industry because we were deeply worried by what seemed like a value dip in the industry and the corruption that was all over the place and to track our resources, among others.

    “Therefore, we have launched a series of computer-based applications which will enable us to track volumes of crudes produced from various terminals and how those volumes or products are moved, whether they are going to vessels and where those vessels are going to. It is a vessel-tracking mechanism so that at any given point in time, you can tell on real time basis what the country has produced for the very first time. These applications will tell where the vessels have gone to in terms of export and say whether they discharge at the given points. We will also be able to say on forensic basis whether there are some suspicious movements of the vessels when they have products in them. We have also extended it to the downstream sector to capture everything that is brought into this country in terms of importation of refined products and track how they are distributed within the country. So, for the first time in this country, we have holistic IT data-based applications that enable us to do that.

    “We also launched the benchmarking system to track expenses and see how we can continue in our process to pull down the cost of producing oil in this country which is a major challenge for us. Given the oscillating price of oil globally unless we are able to do this, we produce all the oil and no make no money out of it. So, this is very helpful to us and we will be able to challenge the oil companies to match the very best practice internally and collectively match the best practices externally in terms of oil pricing. We have explained to you what we have done in terms of early renewals of oil leases and what we generated both in terms of forcing people to be concurrent on payment of outstanding royalties and what we generated in terms of current licences and early renewal basis.’’

    The minister added: “The few interventions that we have had include National Production Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what the country’s production is. We have also had the COLT, which is basically tracking of crude oil and liquefied natural gas (LNG).”

  • Yuletide: DPR assures of adequate fuel supply

     

    ….says 25m liters petrol in Kaduna strategic reserve alone

     

    As Nigerians celebrate Christmas, the Department of Petroleum Resources (DPR) has assured motorists and others that there is adequate supply of petroleum products across the country during the yuletide season.

    DPR Zonal Operation Controller, Kaduna Zone, Malam Isa Tafida told newsmen in Kaduna on Monday that, there is over 25 million litres of PMS in Kaduna strategic reserve to satisfy 2.1 million liter per day demands of Kaduna residents, with several such strategic reserves across the country.

    Tafida, who warned petroleum marketers against illegal practices like selling above pump price, under dispensing, fuel adulteration, however urged Nigerians to beware of panic buying and harmful practices such as stocking fuel at home, travelling with petrol inside cans in the house, especially during the hatmattan period.

    According to him, “We have adequate petroleum products across Kaduna state, our surveillance teams are going around the state to monitor the marketers. Depots across the state have enough fuel to sell during the Christmas and new year festivities.

    “We are not anticipating any challenge, next year elections will be peacefully conducted without fuel hardship. We went round the city and at a mega station, the underground tanks are filled up and four trucks are still waiting to discharge fuel.

    “The threat by Depot and Petroleum Marketers Association of Nigeria and Independent Petroleum Marketers Association of Nigeria to shutdown the depots has been resolved, as government has accepted to clear the debts it inherited from previous administration. We have built up enough strategic reserves to curtail internal issues such as union strikes and externally due to volatility in the international fuel market.”

    Read Also: DPR scales up boarder surveillance over fuel diversion

    He said, though fuel sells costlier in neighboring countries like Niger Republic, Benin Republic and Chad at N400 to N500 per litre, they have taken measures to guide against marketers who may want to get involved in profiteering.

    He warned citizens to, “avoid panic purchase of petrol, avoid storing petrol in your houses inside plastic or metal containers as this poses danger of fire hazard during this hatmattan period.  Avoid travelling with petrol in cans in your car, it is unsafe. Don’t buy fuel from road side hawkers to avoid buying adulterated products this might damage your vehicles.

    “We are combing the nooks and crannies of the country to ensure that people who put up illegal gas dispensing facilities are stopped forthwith. We are going round to check unauthorized retailers to monitor their activities. Investors are welcome to come and invest in the area of gas supply but they must follow due process.” He assured.

     

  • DPR scales up boarder surveillance over fuel diversion

    The Department of Petroleum Resources (DPR) on Wednesday said that it has scaled up surveillance to tackle the menace of diversion of petroleum products through boarders, especially the Premium Motor Spirit (PMS) during the Yuletide.

    The diversion, which has been accountable for the fuel scarcity common at this festive season, has prompted the DPR to direct the issuance of manifest while loading from the depot and presenting same while off-loading the products at the designated retail stations.  

    Speaking on the DPR Half Hour on Radio Nigeria, the Head, Products, Depots and Jetties, Lagos Zonal Office, Mr. Jerry Ndegbunam, said that diversion is a major factor of fuel scarcity.

    His words: “What we have done is that we have upped our surveillance. Our staff are on the street on daily basis to ensure that there is no product diversion. 

    Read Also: DPR shuts two illegal gas stations in Akwa Ibom

    “We send daily on loading a manifest to different office across the nation to monitor to make them ensure that they arrive at the destination where they are supposed to go. We have a process of monitoring from the depot where they loaded to the filling stations across the nation.”

    He allayed fears that there could be fuel scarcity in the season due to lack of sufficient products.

    According to him, unlike last year that there was a threshold of 300million liters, there is currently about 500million litres of the PMS in the Lagos area alone. 

    The quantity, he said “Will take us to the half of next year.” 

    Deputy Director, Zonal Operations Control of the DPR, Lagos Mr. Wole Akinyosoye confirmed that there is a uniform pricing system of not more than N145 per liter of PMS in the country.

    He insisted that “it is N145 per litre and the government is not thinking of shifting it.” 

    Being an audience participatory Programme, a called that inquired why there was disparity in the prices of diesel was told that the price of product is deregulated, but the DPR monitors the fullness of volume of the liter that the marketers sell at their own  prices. 

    He explained that the disagreement between the Federal Government and oil marketers over N800 billion subsidy debt would not cause any fuel scarcity during the Yuletide. 

    He noted that the government and marketers were already coming to a point of convergence on how to pay the debt. 

    On Apapa gridlock, Ndegbunam described it as unfortunate, stressing that about 75% of the depots in the country where located in the area and that was accountable to the traffic jam.

    He said that there was no cause for alarm because men of the Nigeria Security and Civil Defence Corps and those of Lagos State Traffic Management Authority (LATSMA) were always in control of the situation. 

  • DPR warns against price hike during festive period in Cross River

    The Department of Petroleum Resources (DPR) in Cross River State has warned marketers against  hiking the pump price of petroleum products during the festive season.

    DPR Operations Controller in the state, Mr Bassey Nkanga, who spoke during the fourth quarter meeting with Independent Petroleum Marketers Association of Nigeria (IPMAN) in Calabar, disclosed that the Federal Government has ensured that the depots have adequate product for consumers during and beyond the approaching yuletide period.

    He said this was to prevent scarcity of the product and panic buying by Nigerians during the period.

    “As we all know, we are approaching the festive period and DPR in the state have noticed some sharp practices by some marketers.

    “We have intensified surveillance activities across the state with a view to make sure that marketers operate according to the stipulated guidelines.

    “Government has done so much within this period to ensure the free flow of petroleum product and the depots have been adequately stocked to avoid scarcity and panic buying.

    “I wish to appeal to marketers across the state not to take advantage of the festive period to cheat Nigerians in anyway.

    “Anyone caught going against the rules of operation and the government stipulated guidelines will face the consequences,” he said.

    He urged marketers who have not renewed their operating licenses to do so, adding that anyone caught operating without a valid license will be sanctioned.

    The Operations Controller warned marketers in Northern District of the state to desist from selling a litre of petrol above N145, saying that any further act may lead to a revoke of operating license.

    He also warned marketers against under-dispensing, selling adulterated products and violating the DPR seal whenever they were sealed for violating the operational guidelines.

    Read Also: DPR shuts two illegal gas stations in Akwa Ibom

    IPMAN Chairman in the state, Mr Lawrence Agim, commended the Federal Government for the adequate supply of petroleum product to depots.

    Agim said that IPMAN in the state was fully ready to work with DPR in fighting all forms of illegality in the petroleum sector.

    “We are ready to partner with DPR in ensuring that we dispense the product available to us at the approved government price,” he said.

    Meanwhile, the DPR has warned illegal gas centres operators’ in the stage to desist from the act or face stiffer sanctions.

    Nkanga, who gave the warning during the fourth quarter meeting with Liquefied Petroleum Gas Plant Operators/Retailers in the state, said they would clamp down on any gas operator or retailer operating illegally without a valid license issued by the DPR.

    According to him, several cases of gas explosion had been recorded in the state, adding the DPR was intensifying surveillance activities with a view to curb further explosions.

    He said that the government has demonstrated efforts in making sure that gas is extended and sold to residents in the rural areas due to its affordability.

    The Operations Controller charged the retailers to report anyone operating a gas centre illegally to the DPR.

  • DPR warns against price hike during festive period

    The Department of Petroleum Resources (DPR) in Cross River State has warned marketers against  hiking the pump price of petroleum products during the festive season.

    DPR Operations Controller in the state, Mr Bassey Nkanga, who spoke during the fourth quarter meeting with Independent Petroleum Marketers Association of Nigeria (IPMAN) in Calabar, disclosed that the Federal Government has ensured that the depots have adequate product for consumers during and beyond the approaching yuletide period.

    He said this was to prevent scarcity of the product and panic buying by Nigerians during the period.

    “As we all know, we are approaching the festive period and DPR in the state have noticed some sharp practices by some marketers.

    “We have intensified surveillance activities across the state with a view to make sure that marketers operate according to the stipulated guidelines.

    Read Also: DPR shuts two illegal gas stations in Akwa Ibom

    “Government has done so much within this period to ensure the free flow of petroleum product and the depots have been adequately stocked to avoid scarcity and panic buying.

    “I wish to appeal to marketers across the state not to take advantage of the festive period to cheat Nigerians in anyway.

    “Anyone caught going against the rules of operation and the government stipulated guidelines will face the consequences,” he said.

    He urged marketers who have not renewed their operating licenses to do so, adding that anyone caught operating without a valid license will be sanctioned.

    The Operations Controller warned marketers in Northern District of the state to desist from selling a litre of petrol above N145, saying that any further act may lead to a revoke of operating license.

    He also warned marketers against under-dispensing, selling adulterated products and violating the DPR seal whenever they were sealed for violating the operational guidelines.

    IPMAN Chairman in the state, Mr Lawrence Agim, commended the Federal Government for the adequate supply of petroleum product to depots.

    Agim said that IPMAN in the state was fully ready to work with DPR in fighting all forms of illegality in the petroleum sector.

    “We are ready to partner with DPR in ensuring that we dispense the product available to us at the approved government price,” he said.

  • DPR shuts down three fuel stations in Cross River over price hike

    The Department of Petroleum Resources (DPR) in Cross River State has shut down three fuel stations in Odukpani local government area for selling petrol at N150 per litre against the government approved price of N145 per litre.
    DPR Operations Controller in Cross River, Mr Bassey Nkanga, who led his team on a surveillance of fuel stations across the state, said the stations were shut down for violating the seal order of the DPR.
    Nkanga, who expressed dissatisfaction with the hike in price of the affected stations, said they had no reason to hike the price when some stations were selling the product at N143 per litre.
    He said that the stations will have to pay a fine of N1 million each for violating the `seal order’.
    The Operations Controller explained that the intensified surveillance became necessary with a view to ensure that marketers do not increase pump price ahead of the yuletide period.
    “Any marketer that is caught cheating in any form, either selling above government price or adjusting the metre will be sanctioned severely. We have been doing this in the past two weeks and already some marketers have been sanctioned.

    Read Also: DPR raises alarm over adulterated engine oil

    “If you have been a serial violator of the regulations, if you pay the fine; it is not a guarantee that we will unseal your station for business to commence immediately.
    “The level of stability in the sector is nearly 100 per cent especially in Cross River Central and South. We will try our best to sustain this tempo of surveillance activities in all outlets.
    “The initiative is a routine exercise. We are only intensifying the monitoring and surveillance activities to ensure that marketers do not take undue advantage of the yuletide period to hike the price,’’ he said.
    Nkanga said as the yuletide season approaches, there is the tendency that people will want to take advantage of the period to dupe the public.
    He said that DPR in Cross River was doing its best to create awareness and giving assurance to Nigerians that there will be stability in the sector, especially the downstream sub-sector during the yuletide.
    “We are on ground working and the exercise will continue on daily basis because we want to make sure that the yuletide season is hitch free.
    “I want to advise depot owners and marketers to abide by all rules and regulations of the DPR, because anyone that is caught cheating the public will be sanctioned,’’ he said.