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Tag: Fuel scarcity

  • Fuel scarcity to end in two weeks –NNPC

    Fuel scarcity to end in two weeks –NNPC

    •Says crude to arrive Kaduna refinery in 10 days
    •FG allocates 58.27% PMS import to marketers

    Motorists may have to endure two more weeks of fuel scarcity, according to the Nigerian National Petroleum Company (NNPC).

    The organisation said yesterday that the scarcity which has paralysed socio-economic life in many parts of the country for the fourth  week running, could be effectively over in two weeks time when the Kaduna Refining and Petrol-Chemical Company (KRPC) is scheduled to resume production.

    The plant has not been producing on account of the vandalisation of the pipelines supplying it crude oil.

    The pipelines have now been repaired, and the Group Executive Director (GED) and Chief Operating Officer (COO) Off-Stream Sector, NNPC, Alhaji Bello Rabiu Babura, declared yesterday that all is now set for the resumption of production at the plant.

    Besides, the Petroleum Products Pricing Regulatory Agency (PPPRA) has decided to give 58.27 percent of its total supply of  Premium Motor Spirit (PMS) in the second quarter of this year to the oil marketing companies.

    The balance of 41.73 per cent will go to the NNPC.

    The increase in the allocation of fuel to the marketing companies is to ensure that the product is easily available to motorists.

    Babura, during a facility tour of the KRPC, said that the Warri and Port Harcourt refineries are also set for adequate fuel supply in the country.

    “As you can see, the whole country is under siege because of fuel supply. We are looking at the entire value chain to solve the problem,” Babura told journalists during the tour.

    “I came here to see the readiness of this refinery to be back on stream. We were actually having problem with the supply of crude oil to this place from Warri. It is about 640 kilometers line. That line is almost ready so that we would start pushing the crude here.

    “At least in 10 days we would bring the crude to Kaduna, and about two or four days we would make everything ready. We want to make sure that in the next two weeks this refinery will be ready to start producing fuel. If that is done, the entire part of this country will be serviced with fuel”

    “The state of the plant is in good condition. We have inspected it and right now they are actually ready to produce. In two weeks time we will start producing fuel. The workers have made sure that everything is ready for production to begin and nothing will stop them again. They will be ready to soon receive the crude and if the crude comes, we believe that everything will run smoothly”.

    On the security of the pipelines to Kaduna, he said: “If you look at things now you will see that the government has security as its main pillar. We are working very hard now with the military under the Defence Chief to ensure that the pipelines are safe.”Now, as far as we are concerned we have no problem in the creeks; in fact for the first time in 10 years we have our lines from Bonny terminals to Port Harcourt delivering 100 percent. Again, for many years we could not actually deliver from the Excravos.

    “We are trying to ensure maximum production now compared with what we had in the last 10 years when we produced under 23 percent. We believe that by the end of this month all the refineries in the country will work at a higher percentage.”

    Also yesterday,  Mr.  Lanre Oladele said that the oil marketing companies will be receiving 58.27 percent of the total imported petrol in the second quarter while the balance of 41.73 per cent will go to the NNPC.

    However, the agency will retain the retail prices of N86.00 for the NNPC and N86.50 for the other marketing companies.

    Oladele said the pump price of Household Kerosene (HHK) also remains unchanged.

    He advised the marketers to ensure that there is no price distortion in their retail outlets, warning that PPPRA “shall continue to monitor the global oil market performances, and come up, at appropriate time, with reasonable changes consistent with the newly-adopted price modulation principles.”

    It asked depot owners to “strictly adhere to the prevailing truck-out policy put in place by the Agency, to ensure that petroleum products get to their designated retail outlets across the country,” and spoke of its commitment to “the sustenance of its reform initiatives, in order to further guarantee adequate supply of products nationwide.

  • DPR seals off four filling stations in A/Ibom

    DPR seals off four filling stations in A/Ibom

    The Department of Petroleum Resources has sealed off four filling stations in Akwa Ibom State for selling premium motor spirit (PMS) above the federal government approved price of N86.50.

    DPR has also fined Jobina filling station located in Uyo, the Akwa Ibom State capital the sum of N1 million for selling petroleum product after DPR had sealed off the filling station .

    Mr. Bassey Nkanga, the DPR’s Operation Controller in Charge of Akwa Ibom and Cross River States, revealed this during his surveillance of filling stations within the Uyo metropolis on Saturday.

    Nkanga noted that DPR had earlier sealed the filling station for not having a valid licence.

    He explained that the station had been operating for about 10 years without valid licence in the state.

    According to him, the filling station would pay the sum of one Million naira for violating seal order, adding that the whole station had been sealed off.

    His words: “This station is under sealed because is operating without valid licence and is not a new filling station that is just newly built.

    “This is an old station that has not regularise its licence and we shut it down but coming here today, we saw them selling AGO, whereas the whole station had been sealed.”

    Nkanga said that depot owners who sell petroleum products above ex-depot price would be sanctioned.

    He said that if marketers would not sell their products at government regulated price, they should stop bringing products to the state.

    According to him, any marketer that will sell petroleum products, especially PMS above government price will be sealed accordingly.

    He said: “Any marketer that cannot sell petroleum product at stipulated rate of N86.50 should not even bring the product to the states at all.”

    He said that the Federal Government was partnering Stakeholders in the downstream sector to ensure that normalcy return to the petroleum industry in no time.

  • Photo: Chaotic fuel situation

    Photo: Chaotic fuel situation

  • Fuel scarcity is sabotage – ASUU

    Fuel scarcity is sabotage – ASUU

    The Academic Staff Union of Universities (ASUU) says the persistence fuel scarcity faced by Nigerians is part of the ongoing sabotage in the political system.
    ‎
    Dr Nasir Fagge, the national president of the union, told the News Agency of Nigeria (NAN) in Lagos after paying a courtesy visit to Prof. Olanrewaju Fagbohun, the Vice-Chancellor, Lagos State University (LASU), Ojo.

    Fagge alleged that the fuel scarcity was created by some ‎group of people, who were used to stealing public funds.

    He said the saboteurs created the scarcity to build a brick wall for the present administration, for failing to pay subsidy on fuel.

    According to him, the government is supposed to consider and analyse all the problems that may arise before removing the subsidy.

    “All the problems arising now should have been envisaged and addressed before removing the subsidy.

    “Government is supposed to know that some people will try to frustrate its effort and should have pre-empt that,’’ he said.
    ‎
    According to the ASUU president, it is also wrong for political office holders to make unfulfilled promises to Nigerians about when the fuel scarcity will end.

    He advised government officials to always inform the citizens about the true situation of an issue‎ on regular basis, rather than toying with their emotions, only to apologise later.

    “How will a government official utter conflicting statements that the fuel scarcity will be resolved on April 7, but later said it will be in the second week in April. That is unfair.

    “Government officials should be held responsible for their promises and anyone who makes promise and failed to fulfill it should be eased out of the system,’’ he ‎said.
    ‎
    The ASUU president ‎ called on President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources, to urgently save Nigerians from the current hardship the fuel scarcity had brought upon them.

     

  • Normalcy will soon return to filling stations – NUPENG

    The National Union of Petroleum and Natural Gas Workers (NUPENG) on Wednesday assured that normalcy would soon return to filling states nationwide if the current tempo of loading at the depots continued till the weekend.

    Alhaji Tokunbo Korodo, the South-West Chairman of the union, gave the assurance in an interview with the News Agency of Nigeria (NAN) in Lagos.

    Korodo said that the NNPC commenced massive pumping of petrol to its depot at Mosinmi early this week and loading of petroleum trucks had started.

    “Going round some depots in Lagos, I observed that loading was going on and more filling stations are selling the product at the control price.

    “Some filling stations that are selling between N130 and N150 will be forced to sell at control price when the market is flooded with petrol.

    “If NNPC can keep the tempo of the loading till weekend, more filling stations will have petrol and the queue of motorists at filling stations will reduce.

    “The corporation should ensure that it keeps on pumping petrol to both major and independent marketers’ depots to reduce the scarcity,” he said.

    The chairman appealed to NNPC management to ensure that it carried along all stakeholders in the oil and gas sector so that the fuel scarcity could end as promised.

    Korodo urged the corporation to maintain the current loading system at depots.

    NAN reports that the Minister of State for Petroleum, Dr Ibe Kachikwu, on March 29, said that the long queues in the petrol stations would disappear by April 7.

    Kachikwu made the statement when he appeared before the Senate Committee on Petroleum (Downstream) over the lingering fuel scarcity in the country.

    He apologised to Nigerians over his statement that the fuel scarcity would linger till May.

     

  • Buhari okays more crude to end fuel scarcity

    Buhari okays more crude to end fuel scarcity

    The Nigeria National Petroleum Corporation (NNPC) said yesterday that President Muhammadu Buhari approved additional crude oil volume for the corporation to guarantee the country’s supply of petrol.

    NNPC’s Group General Manager, Group Public Affairs Division Garba Muhammed gave the news in Abuja in a statement: “NNPC determined to end fuel scarcity”.

    He explained that following the challenges that “major oil marketers face in contributing their supply quota due to constraint in accessing foreign exchange and outstanding subsidy obligations, NNPC is burdened with the obligation to guarantee almost 100 per cent in the national supply, since the domestic crude oil supply (445,000 bbls/d) can only guarantee about 50 per cent of the 45 million litres national requirement for petrol”.

    “We have secured presidential approval to take additional crude oil volume to guarantee national supply of petrol,” Muhammed said.

    The statement reassured Nigerians that NNPC was on top of the petroleum product supply and distribution and that it would eliminate the endemic issue within the next few days.

    According to the statement, the Buhari administration inherited a huge catalogue of issues and problems in the downstream sector, which, it said, include arrears of subsidy payments to oil marketers, corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines, refineries’ poor performance, among others.

    It added: “A combination of these issues resulted in most oil majors completely pulling out from the importation business and NNPC assuming a near 100 per cent importation obligation without the logistics in place.

    “In line with the change agenda of this administration, NNPC management initiated and made progress on key solutions to a lasting end to these issues.

    “The unpaid arrears arising from the subsidy regime necessitated most oil marketers to stop involvement in petroleum product imports. Thankfully, with the support of Mr. President and the National Assembly, we reduced this debt burden and since January 1, we have been able to eliminate subsidy payments by managing prices through price modulation. This has resulted to a saving of over N100 billion monthly.

    “Nationwide petroleum supply and distribution have been ramped up to states to ensure product availability.”

    The supply to states is in excess of the normal consumption, especially in the five major consuming cities.”

    The NNPC spokesman said the corporation intensified monitoring to ensure full compliance with approved prices.

    Violations of approved prices and hoarding of petroleum products would attract stiffer penalties, the statement added.

    The corporation encouraged the public to report product hoarders and saboteurs of the Buhari administration’s change efforts, accusing them of wittingly fighting every bold change effort currently being put in place.

    It urged the citizens to shun panic buying and undue return trips,  “as this attitude emboldens marketers to hoard products”.

    The statement noted that supply constraints due to foreign exchange challenges were being resolved through collaboration with the Central Bank of Nigeria on innovative ways of closing the gaps in accessing foreign exchange.

    “Our commitment to ramp up our local refining capacity and availability remains un-waivered with the ongoing rehabilitation works targeted at running all refineries at a minimum 70 per cent capacity utilisation within the next six to eight months. This is in addition to our initiative of increasing the combined capacity of the domestic refineries through co-locating smaller but cost efficient modular refineries within the existing refineries premises within a time frame of 12-24 months.

    “To curb storage and logistics challenges, we are working on a joint partnership with technically and financially capable investors to ensure that petroleum products transportation and storage facilities are efficiently operated on an open-access common-carrier user-tariff basis,” the statement said.

    The NNPC said it understood the plight of Nigerians and the impact on the overall economy.

    It called on the citizens to partner with it on “the journey to allowing the whole process of change come into fruition”.

     

  • Buhari approves additional crude oil to end fuel scarcity

    Buhari approves additional crude oil to end fuel scarcity

    The Nigerian National Petroleum Corporation (NNPC) Tuesday said that President Muhammadu Buhari has given approval for the corporation to take additional crude oil volume to guarantee the country’s supply of Premium Motor Spirit (PMS) petrol.

    In a statement titled “NNPC determined to end fuel scarcity,” its  Group General Manager, Group Public Affairs Division, Garba Deen Muhammed, said that  due to the challenges that “major oil marketers face in contributing their supply quota due to constraint in accessing foreign exchange and outstanding subsidy obligations, NNPC is burdened with the obligation to guarantee almost 100% in the national supply, since the domestic crude oil supply (445,000 bbls/d) can only guarantee about 50% of the 45 million litres national requirement for petrol; we have secured presidential approval to take additional crude oil volume to guarantee national supply of petrol.”

    Explaining the causes of the scarcity, the spokesman noted that in continuing with our desire to keep Nigerians abreast of the key actions taken in the downstream petroleum sector, NNPC re-assured Nigerians that it was on top of the petroleum products supply and distribution situation, and it remained committed to eliminating this endemic issue once and for all within the next few days.

    According to the statement, the current administration inherited a huge catalog of issues and problems in the downstream sector not limited to arrears of subsidy payments to Oil Marketers, corruption and inefficiencies in the supply and distribution chain, incessant vandalism of pipelines, refineries poor performance, among others.

    It added that; “A combination of these issues resulted in most oil majors completely pulling out from the importation business and NNPC assuming a near 100% importation obligation without the necessary logistics put in place.

    “In line with the change agenda of this Administration, NNPC Management initiated and made progress on various key solutions to providing a lasting end to these issues.

    “The unpaid arrears arising from the subsidy regime had necessitated most oil marketers to stop all forms of involvement in petroleum products imports. Thankfully, with the firm support of Mr. President and the National Assembly, we greatly reduced this debt burden and since January, 1st 2016 we have been able to eliminate subsidy payments by managing prices at current levels through price modulation. This has resulted to savings of over 100bn Naira monthly for the nation.
    “Nationwide Petroleum supply and distribution have been ramped up to all states to ensure product availability in the country. The current supply to States is in excess of the normal consumption especially in the five major consuming cities.”

    The spokesman said that the corporation has intensified monitoring to ensure full compliance with approved prices.

    Violations of approved prices and hoarding of petroleum products attract the following penalties, he vowed.

    The penalties, according NNPC, include giving out of petroleum products free to the public, sealing off fuel stations found to be hoarding petroleum products and payment of a fine.

    The corporation also vowed to withdraw Marketer’s License, stressing that “Any NNPC, DPR, PPPRA or Government Agent found conniving /wanting will be sanctioned accordingly in line with public service guidelines and procedures.

    “As partners in progress, we encourage the general public to report product hoarders and saboteurs of this Administration’s change efforts as they are wittingly fighting every bold change effort currently being put in place. We encourage everyone to shun panic buying and undue return trips as this attitude emboldens marketers to hoard products.”

    The statement noted that supply constraints due to foreign exchange challenges are being resolved through collaboration with the Central Bank of Nigeria on innovative ways of closing the gaps in accessing foreign exchange. It said that as a result of credible leadership provided by the Minster of State, Petroleum Resources/Group Managing Director, NNPC, Dr. Emmanuel Kachikwu and the major international upstream oil companies have indicated their willingness to support major oil marketing companies with some of the required foreign exchange.

    Continuing, the statement noted that “We are vigorously pursuing an improved model for ‘crude oil for refined product’ exchange (the Direct Sale – Direct Purchase arrangement) which eliminates inefficiencies with an attendant cost saving for the nation of about $1 billion. This will guarantee sustainable product supply to the nation.

    “In the medium term, NNPC is working on sustainable strategies to permanently address the issues and challenges facing the midstream and downstream sectors. The overarching objective is to make Nigeria a net exporter of Petroleum products as was the case in the 1970’s.

    “Our commitment to ramp up our local Refining capacity and availability remains un-waivered with the ongoing rehabilitation works targeted at running all Refineries at a minimum 70% capacity utilization within the next 6 – 8 months. This is in addition to our initiative of increasing the combined capacity of the domestic refineries through co-locating smaller but cost efficient modular refineries within the existing refineries premises within a time frame of 12-24 months.

    “To curb Storage and Logistics challenges, we are working on a joint partnership with technically and financially capable investors to ensure that petroleum products transportation and storage facilities are efficiently operated on an open-access common-carrier user-tariff basis.

    “Some of these Depots will be nominated as strategic reserves while we take possession of a strategic reserve vessel in the next 3 months. Tangible results will be delivered within the next 3 – 6 months.

    “Changes usually take time, effort and a lot of focus. We understand the plight of Nigerians and the impact on the overall economy. We genuinely empathize with the attendant sufferings and wish to reassure that we are focused and committed to bring an end to this situation within the next few days and we kindly call on all Nigerians to partner with us on this journey to allowing the whole process of change come into fruition.”

  • Fuel scarcity: Senate summons Kachikwu

    Fuel scarcity: Senate summons Kachikwu

    The Senate on Monday summoned the Minister of State for Petroleum, Mr Ibe Kachikwu, to appear before its Committee on Petroleum Downstream on Tuesday, over lingering fuel scarcity in the country.

    The Chairman, Senate Committee on Petroleum Downstream, Sen. Jibrin Barau, told newsmen shortly after an on-the-spot assessment of filling stations in the Federal Capital Territory (FCT) that the summons became necessary following the hardship on Nigerians.

    He decried that in spite of assurances from the ministry that the situation would be brought under control, it had lingered.

    “We have invited the minister of state to appear before the committee on Tuesday  to tell us about the fuel scarcity problem and the strategy he is employing to solve it.

    “We will expect him to give a date when the problem will be resolved permanently; this is the course of action we have taken.

    “We are not satisfied because this problem has gone unabated for too long; the situation is appalling and it is a major problem.

    “We gave the ministry enough time and space to put its act together to solve this problem.’’

    Barau assured that the senate would take a position on the matter after hearing from the minister of state, who is also the Group Managing Director, NNPC.

     

  • Fuel scarcity: Tinubu blasts Kachikwu

    Fuel scarcity: Tinubu blasts Kachikwu

    • Takes exception to minister’s ‘I’m not a magician’ comment
    • Says respect, good performance will do what magic can’t do

    National Leader of the ruling All Progressives Congress (APC), Asiwaju Bola Tinubu, yesterday ruled the Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, out of order for saying he should not be expected to conjure magic in resolving the current fuel crisis in the country.

    He said the minister strayed from the progressive calling required of the Buhari administration by making the statement attributed to him.

    Kachikwu who doubles as Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) had said, in reaction to public criticism of his handling of the fuel scarcity, that Nigerians should count themselves fortunate that the NNPC under his stewardship has been able to bring in the amount of fuel it is currently doing.

    Tinubu, in a statement, threw in his lot with Nigerians who, according to him, were “as right to feel insulted as the minister was wrong to have said such a thing.”

    He said those charged with the responsibility of running the affairs of the country should learn to do things creatively and away from past practices.

    His words: “The art of governance is difficult and complex, especially during trying times. The steep reduction in global oil prices from over 100 dollars per barrel to roughly 40 presents a hard challenge. “We can no longer afford past practices. Nigeria now requires creative reform, materially changing the substance of national economic policy as well as the objectives of that policy and how the policy is presented to the people. Therein lies the essence of progressive democratic governance.

    “The Buhari administration represents the last best hope we have to install such governance in Nigeria and avert the catastrophe that would have befallen us had the prior government remained in place. Had the nation continued with the spendthrift corruption and vagabond economic policies of that administration, we would have soon experienced such a collision with the harsh consequences of that government’s malign ways that our very institutions of government may have been distorted beyond fixture and repair.”

    Asiwaju Tinubu added, “In this effort, there may be no economic matter more difficult to unravel and more sensitive to the purse of the average person than the current fuel scarcity. Even here I am confident of progress because I know the commitment of the president to resolving this matter. I make no attempt to hide it. I am an avid and partisan supporter of this government and of the progressive policies of the party, the APC, upon which this government is based.

    “With that I do reserve the right and the duty as a Nigerian to voice my opinion when I believe a member of this government has strayed from the progressive calling required of this administration. I do this because my greater devotion and love are for this nation and its people. Party and politics fall secondary.

    “Much public ire has been drawn to the statement made by Minister of State (Ibe Kachikwu) that he was not trained as a magician and that basically Nigerians should count themselves fortunate that the NNPC under his stewardship has been able to bring in the amount of petrol fuel it is currently doing.

    “Perhaps the statement by Kachikwu was made in a moment of unguarded frustration or was an awkward attempt at a joke. Whatever the motive, it was untimely and off-putting. The remark did not sit well with the Nigerian people; they were as right to feel insulted as the minister was wrong to have said such a thing.

    “The fuel shortage is severely biting for the average person. They are forced to remain in lines far too long, for too much time, to pay too much money for too little fuel. This is no joking matter. Livelihoods and people’s welfare are at stake. With so much on the line, Kachikwu’s flippancy was out-of-line. He was basically telling Nigerians that they should be lucky that they are getting the inadequate supply they now suffer and that they should just be quiet, and endure the shortage for several weeks more.

    “Kachikwu’s intervention was unhelpful. It panicked and disappointed the public as to the duration of the crisis. It insulted the people by its tonality. He spoke with the imperious nature of a member of the elitist government the people voted out last year and not the progressive one they voted in.”

    He reminded the minister “that he was not coerced to take this job. He accepted the job and its responsibilities knowingly. He also must remember that he does not own NNPC. This also is not a private company that owes nothing to the public except the duty of fair dealing. He is a public servant. The seat he sits upon is owned by Nigerians not by him. The company he runs is owned by Nigerians not by him. They are his boss. He is not theirs. Power is vested in the people. He is a mere custodian or agent of their will. In talking to us in such a manner, he committed an act of insubordination.

    “If he had talked so cavalierly to his boss in the private sector, he would have been reprimanded or worse. If wise, the man should refrain from such interjections in the future.”

    In defending and asserting the rights of Nigerians to complain, Tinubu averred that “As his ultimate bosses, the people have a right to demand the requisite performance and respect from him.  He should apologise for treating them so lightly in this instance. His portfolio being a strategically important one, he needs to reestablish the correct relationship with the public. They no longer feel he is working for their optimal benefit as their servant. Instead, he seems to be standing above them, telling them to take it or leave it.

    “For his policies and stint in office to be successful and a help to this government, he must have the support and belief of the people at this tough time. He must talk to them in a way that they believe he seeks their best interest and understands the hardship weighing upon them. He must ask them to work with him and perhaps to endure a bit longer but with the knowledge that he is working to resolve this matter as fast as he can and as permanently as possible. That he is dedicated to the position that once these current lines are gone that never again shall they reappear as long as he has any influence in the matter.

    “To do this, requires no magic nor training in that strange craft. It requires empathy, compassion and the willpower to forge a better Nigeria. These must be the common trademarks of those serving in a progressive government for these attributes are integral parts of the spirit and ideals upon which the APC was founded. Upon such notions was this administration voted into office by the Nigerian people in the operation of their sovereign will to seek a national leadership that would pursue their interests to the utmost and give them every fair chance to live in a better Nigeria.

    “Even though times are hard we must all realise that they would  be even harder and much darker would be the immediate horizon had we allowed the venal, kleptocracy of the PDP to continue to lord over the land solely for their selfish benefit and not for the common good.

    “I am confident that President Buhari and this government can resolve the issues that press us. From establishing full security and safety to staking a claim to true economic prosperity and fairness, this government shall salvage our national pride and purpose,” Tinubu concluded.

  • Fuel scarcity…An unending scourge

    Fuel scarcity…An unending scourge

    In this conclusion, EMEKA UGWANYI captures the suggestions of stakeholders in the downstream sector of the oil economy, on how to tame the fuel scarcity monster.  

    Way forward

     

    The long-term solution to the perennial fuel shortage is deregulation. But, without proper monitoring, the policy may trigger a breakdown of the sector as marketers are likely to engage in profiteering. The short-term measure is massive importation to ensure the country is wet with petrol. Vested interests in the downstream sector of the oil industry will work to frustrate the interim measure. This interest is part of the reason monitoring and compliance is very low or non-existent, hence the thriving sharp practices in the sector.

    To MOMAN’s Executive Secretary, Mr. Obafemi  Olawore, as long as the NNPC remains the sole importer, it might be difficult to adequately meet national demand because the corporation does not have enough facilities to drive distribution.

    According to him, the NNPC imports about 78 per cent of national demand and that is putting pressure on distribution because of logistics constraints. He, however, expressed optimism that the importation ratio of 78:22 per cent for NNPC and other marketers respectively may be reviewed next quarter.

    Olawore stated that the only way out of these problems is for the government to be courageous enough to deregulate the downstream.

    The spokesman of Mobil Oil Nigeria Plc., the products marketing arm of ExxonMobil in Nigeria, Mr. Akin Fatunke, corroborated Olawore’s position. He said that besides allocations from the NNPC, Mobil Oil and Total imported their own cargoes.

    According to him, fuel scarcity is caused by the gap or delay in supply.

    “There was a short delay in delivery of cargoes recently, and the ripple effect of that delay is the current scarcity and long queues we see all over the place,” he said

    Fatunke also noted that due to forex issue, all the private companies, apart from Mobil and Total have not been importing.

    He insisted on the deregulation of the nation’s downstream oil industry as the way out.

    His words: “With the clout and policy thrust of the present government, we thought the industry should be controlled by market forces of supply and demand, especially now that the prices of crude are fairly low. Government at certain points should intervene but the operation of the downstream should driven by market forces especially in the face of foreign exchange scarcity.”

    He also urged the government to make the downstream sector a standalone unit of the oil and gas industry, in operation and regulation and not lumped together with the upstream and midstream sectors.

    Fatunke said: “When made to be a standalone unit, it would be able to police smuggling and diversion of products and other irregularities. With deregulation, private companies would be able to build refineries in Nigeria and more local and foreign investors will come into the downstream sector.

    “The government should also know that it has no business being in business of the downstream. The government should have the courage and will to enthrone level playing field for players in the sector and allow economic forces come into play.”

    The Managing Director/Chief Executive Officer, Niger Delta Petroleum Resources Plc., Dr. Layi Fatona, said: “There must be a focused and firm implementation of multiple small to medium sized oil and gas processing facilities, such as refineries, tied strictly to producing assets.”

    According to him, oil companies that have crude producing fields should have at least a small refining facility attached to it. That is the only way to ensure sustainable increase in in-country refining.

    To IPMAN’a National Operations Controller, Mr. Mike Osatuyi, the Petroleum Resources minister has failed.

    He said: “It was difficult to meet national consumption efficiently when the NNPC was importing less than 50 per cent of the consumption, now it is importing 78 per cent, what does he expect?”

    He, however, described the appointment of Mr. Ahmed Farouk as PPMC’s helmsman, as perfect if he is given the enabling environment to operate.

    Osatuyi said: “He (Farouk) will change the face of petroleum products marketing and distribution. Ahmed knows the industry inside out. NNPC should stop the monopoly it practices because it is not in the interest of the economy and Nigerians.”

    On the remedial solution to stem recurring fuel scarcity, the NNPC is in fresh talks with some foreign refineries for exchange of crude oil for refined petroleum products (swap) deals.

    Although the contracts have not been signed, the corporation has shown optimism that the deal, when sealed, will take away the queues from filling stations.

    According to a report, the swap deals will be with seven refining companies – ENI, Essar, Litasco, Total, Cepsa, Societe Ivorienne de Raffinage (SIR) and Vitol, refining arm Varo, with local oil companies as partners, to take oil in exchange for petrol.

    “Nobody wants to see people spend two hours on fuel queues,” Kachikwu said on his Twitter handle, adding “We are working on long-term solutions.”

    Under preliminary agreements, each refiner will ship about 90,000 tonnes of petrol in exchange for 950,000 barrels of crude oil. The arrangement will see the NNPC swapping 330,000 bpd of crude, which is well above the 210,000 bpd initially agreed last year with four refineries.

    The swap arrangement will see Litasco with MRS as the local partner exporting estimated 60,000 bpd; Cepsa with Oando (60,000 bpd);  Varo with Calson (60,000 bpd);  Societe Ivorienne de Raffinage with Sahara (60,000 bpd); ENI with Oando (30,000 bpd); Essar with Shoreline, (30,000 bpd) and Total with Total Nigeria (30,000 bpd).

    The new agreements are billed to kick-off next month with crude loading programmes.