The Nation Newspaper

Tag: fuel supply

  • DPR assures of fuel supply

    The Department of Petroleum Resources (DPR) at the weekend assured that there was sufficient level of petroleum products that will sustain the country for months and even beyond the last quarter of the year.

    It dismissed rumours of impending scarcity of products particularly Premium Motor Spirit (PMS), and cautioned marketers against selling above the approved pump price of N145 per litre.

    Its Head of Operation, Lagos Zonal Office, Sholabi Olanrewaju, who gave the assurance, advised residents against panic buying, saying the Federal Government has ensured  availability of products, adequately supply and prompt distribution across states.

    Olanrewaju said: “There is sufficient level of petroleum products as at today’s stock that could take the nation for months.

    “So, I will advise members of the public there is no need for panic buying of petroleum products in anticipation of scarcity.

    “Any petroleum marketer found to be selling PMS above the stipulated pump price of N145 per litre or causing a hitch in the supply chain will be severely dealt with in accordance with the law.”

     

  • IPMAN seeks increased fuel supply

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Nigerian National Petroleum Corporation (NNPC) to intensify the distribution of petroleum products to Western depots to address fuel shortage in the hinterlands.

    Its Chairman, Western Zone, Alhaji Debo Ahmed, made the appeal in Lagos., saying increased fuel supply to the zone becomes necessary due to IPMAN members’ inability to import petrol.

    He, however, commended the NNPC for improving supply but noted that the distribution was still not enough for the zone. According to him, some depots within the western zone have begun to receive massive supply of petroleum products from the NNPC, which independent marketers enjoy, loading at ease to the hinterlands.

    He said: “The supply of petrol to the depots has improved in the western zone, but we appeal to the NNPC to maintain the tempo. All depots within the western zone now sell petroleum products at government-regulated prices unlike before when petrol was sold above ex-depot prices.

    “We, the marketers, under the western zone, commend the management of NNPC for addressing the petroleum distribution challenges to depots in the zone. Government has set the pace for steady supply of petroleum products across the country.”

    Ahmed praised President Muhammadu Buhari for his concern in easing fuel distribution and supply to every part of the country, adding that the concern had informed the commitment of the NNPC’s management in upgrading storage facilities across Nigeria and ensuring the availability of products.

  • NNPC to reduce daily losses in fuel supply to N516m

    The Nigerian National Petroleum Corporation (NNPC) is to reduce daily losses from N774 million to N516 million, Group General Manager, Public Affairs Division, Ndu Ughamadu, has said.

    He said the corporation would achieve this by cutting the level of fuel consumed from 60 million to 40 million litres.

    He noted that product diversion and activities of some unscrupulous marketers contributed to the high consumption and once the corporation plugged the holes,  consumption level would drop.

    In a telephone chat, Ughamadu said a large portion of the fuel supplied to the market was diverted to neighbouring countries, such as Benin Republic, and Togo.

    He said NNPC has partnered the Nigerian Customs Service (NCS) to check the smuggling of petroleum products.

    Ughamadu said: “Our (NNPC’s) under-recovery was N774 million as at the time the level of fuel consumed in the country rose to 60 million litres per day. We, at NNPC, discovered that the higher the level of fuel that is being consumed in the country, the higher the losses recorded by the country, as a sizeable portion of the fuel is being smuggled out of the country.

    “To reduce fuel consumption, which in most cases, is smuggled out of the country, the corporation decided to partner the Nigerian Customs Service (NCS). Through this means, the Customs would help to check smuggling of petroleum products by mounting surveillance at the borders.”

    He said NNPC discovered 200 filling stations in one of the borders in the country, stressing that the partnership between it and the Customs would help in addressing problems, such as hoarding and smuggling of petroleum products, which he said, contributed to the fuel scarcity last December.

    “With the joint efforts of NNPC and the Customs, all the illegal petrol stations at the borders would disappear soon and the fuel consumption would reduce drastically.”

    He said the level of fuel consumption was 39million litres per day, adding that it grew to 80million litres per day during the fuel scarcity and later 60million litres.

    According to him, Nigerians are erroneously blaming NNPC for fuel scarcity that occurred recently, without considering other factors that caused it.

    On fuel scarcity, he said there was no scarcity in the country, as NNPC has supplied enough fuel to marketers for distribution to their retail outlets.

    He said there is fuel in states like Imo, Enugu, and Anambra, stressing that the rumour that those states do not have fuel was not true.

    He said there is a difference between selling fuel above the official pump price of N145 per litre by some marketers in the East and its unavailability.

    Ugbh    amadu said all hands were on deck to rid the fuel market of saboteurs who were frustrating the efforts of the government to supply fuel at approved pump price.

  • Why NNPC relies on marketers for fuel supply

    Why NNPC relies on marketers for fuel supply

    The Nigerian National Petroleum Corporation (NNPC) is relying on members of Major Oil Marketers Association of Nigeria (MOMAN) to distribute fuel nationwide due to their reliable and administrative qualities, the Corporation’s spokesman, Ndu Ughamadu, has said.

    Others, he said, are their financial strengths, ability to undertake big ticket transactions and forthrightness. MOMAN members include Conoil, Forte Oil, Mobil, Total, Oando and MRS Oil.

    He said the body possesses qualities that are unique and also endear them to present and existing investors, adding that such attributes are vital to the growth of any business enterprise.

    In a telephone interview with The Nation, Ughamadu said the marketers are capable of delivering petroleum products supplied them by the NNPC, without delays.

    He said the National Oil Company is saddled  with the responsibilities of importing fuel, taking delivery of its cargoes and making it available to consumers across the country, adding that MOMAN has made the job of giving the product to consumers much easier.

    He said: “MOMAN outlets are strategically located in the country and this is a plus for NNPC that wants fuel to be distributed to consumers faster. Our duty as the nation’s sole importer of fuel into the country is to supply fuel and further ease scarcity, which we have been trying to achieve though the marketers and other relevant stakeholders in the value chain.

    “ Besides fuel, many of the firms are into upstream engagements through which they explore oil for growth, coupled with the fact that they deal with natural and Liquefied and  Petroleum Gas(LPG). These improve their records at the end of every financial year.”

    On portfolios, he said the marketing oil companies have huge financial portfolios, as evident by their subsidiaries, reservoirs or tank farms that can store huge volume of fuel, outlets, balance sheets and the confidence, they are enjoying in the downstream sub-sector of the nation’s oil and gas industry.

    He said many of the firms were quoted on the Nigerian Stock Exchange and other Exchanges, adding that their ability to ensure that people invest in business has further boosted  the confidence reposed in them by Nigerians.

    “In view of the fact the oil marketing firms are bringing in profits through their investments, of which listing on floors of the exchange is one of them, the companies are protecting‘’

    He said companies that are quoted on the floors of the Exchange run businesses worth several billions of naira, enjoy international recognition and always mindful of their image, adding that they are not ready to engage in transactions that are only illegal and capable of eroding the public confidence of the investors.

    He further said activities in the downstream sub-sector of the nation’s oil and industry are developing and require investors that can hold their own as evident by the performance of many of the marketers in the recent years.

     

  • NNPC plans direct fuel supply to independent marketers

    Barring any unforeseen circumstances, the Nigerian National Petroleum Corporation (NNPC), will henceforth be supplying premium motor spirit (petrol) directly to independent marketers. This is  to deepen the supply of the product across the country, The Nation has learnt.

    It was gathered that NNPC will be supplying fuel to the marketers through private depots as part of efforts to improve supply and ease scarcity.

    Sources close to The Nation said NNPC initiated the idea in order to leverage the large and nationwide retail outlets owned by the independent marketers, which is put at 80 per cent of the total filling stations in Nigeria.

    The source, who does not want to be mentioned, said the Corporation initiated the idea following the recent fuel scarcity, which paralysed social and economic activities in the country last December.

    “Not all the depot owners have filling stations. Some of the depot owners have retail outlets. The decision by the NNPC to choose independent marketers was borne out of its size as evident by their numerous outlets across the country. The Independent Petroleum Marketers Association of Nigeria (IPMAN) controls a big chunk of the retail market and the development is going to afford NNPC the opportunity to penetrate the market by distributing fuel well in the country.

    Speaking on the issue, IPMAN’s National Operational Controller, Mr Mike Osatuyi, said his members would not miss any opportunity given them by the government to distribute in the country.

    He said his members are yet to embark on importation despite the directive by the Federal Government that they should resume importation of fuel.

    According to him, independent marketers are not importing fuel because they do not have firm commitment of NNPC to do so.

    Osatuyi said: “No marketer can import fuel into the country, without the express permission of the NNPC. The reason is because no marketer can import fuel at N180 per litre and make appreciable margin. The last price a marketer can get the refined product abroad is N180 per litre. Any marketer who imported fuel without the nod of the Federal Government as relates to the payment of differentials on the cost of importation is wasting his time.

    “Marketers are not ready to import fuel because if they should do, nobody would pay them the differentials on the cost of fuel they imported.

    He said marketers, during a meeting with the Federal Government on how to resolve the fuel crisis, offered the government three solutions.

    He said the marketers suggested to the Federal Government to be providing foreign exchange to them at below N240 per dollar and double or triple fuel import.

    Commenting on the issue, NNPC’s spokesman, Ndu Ughamadu, said the corporation is interested in dealing directly with independent marketers on the condition that they sort out their differences.

  • Fuel supply: we‘re committed to friendly rates, steady delivery

    Amidst the current fuel crisis in the country, NIPCO, one of the leading petroleum downstream operators, has pledged to continue with market-friendly rates for all petroleum products from its depot in 2018.

    NIPCO’s new Managing Director, Sanjay Teotia, stated this in a New Year message to members of staff. He also promised stakeholders and consumers unfettered access to petroleum products, including Liquefied Petroleum Gas (LPG) also known as cooking gas from its facilities in Apapa, Lagos.

    He said: “NIPCO would remain a reference point as a market leader in products marketing, working for the benefits of our stakeholders. Our depot will continue to be a major player in ensuring unfettered access to petroleum products at market friendly rates.”

    In the Liquefied Petroleum Gas business, he said: “We would seize the opportunity of our present status as the outfit with the largest LPG storage facility in the country to enhance access to the product by promoting the consumption of LPG, otherwise referred to as cooking gas through flaw less operations with a view to aligning with the federal government’s policy to revitalize domestic cooking gas use across the country.”

    Teotia said NIPCO’s meteoric rise among its peers has consistently shown that the organisation is a world class company, operating in a highly endowed oil and gas country.

    “We hope to build on the successes of the out-gone year in conscious move to take the company to greater heights, leveraging our unique infrastructure and highly committed workforce.

    “We would continue to build on our Corporate Social Responsibility (CSR) programmes. Our desire is to significantly impact positively on our host community in sports and education through series of sponsorship of school programme in Apapa Local Government Area in Lagos and other parts of the state and the country at large,” he added.

    Felicitating with members of staff, Teotia said: “The New Year holds high optimism of better days ahead. From my vantage position, I am upbeat about our company’s growth pattern. May I seize the opportunity of this missive, which is my maiden one since assumption of office as the Managing Director to express my appreciation of the great work you have been carrying out for the company.

    “I join you all in giving thanks and praises to God Almighty for His guide to the company’s management and the nation in general, even as we wade through the challenges of the sector. I wish to assure you that as a company, we remain rock-solid and fulfilled.

    “I am excited with our modest performance in 2017, which would not have been possible without the support of our stakeholders of which members of staff contribution is very crucial. The commitment of our staff and the cooperation from the government and other stakeholders, including our esteemed marketers, has facilitated our performance in the outgone year.

    “Be assured that I would strive to keep a happy and well motivated workforce based on a transparent performance driven reward and compensation system aimed at enhancing the company’s service delivery.

    “Management would endeavour to prioritise staff welfare in recognition of the importance it places on the company’s workforce. NIPCO Pie Staff are the asset of the company. I urge you to rededicate yourselves to your duties to further propel the company to greater heights.”

  • NNPC: Jetty fire won’t affect fuel supply

    NNPC: Jetty fire won’t affect fuel supply

    The Nigerian National Petroleum Corporation (NNPC) yesterday  assured motorists and other consumers of petroleum products nationwide that the fire incident which occurred at Apapa loading jetty at the early hours of yesterday will not affect supply of petroleum products.

    Its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, who gave the assurance, in a statement said already, NNPC has deployed a team of engineers to the jetty while the repair of the affected parts would commence immediately.

    The fire was sparked by the activities of hoodlums who were scooping fuel spilled from ships discharging fuels at the jetty.

    The oil firm’s Group Managing Director, Dr. Maikanti Baru, who has been fully briefed on the incident, described the occurrence as unfortunate, assuring that NNPC has more than 1.6billion litres of petrol, enough to last for 48 days.

    Baru also said the Corporation also had in stock, sufficient quantity of diesel, kerosene, as well as Aviation Turbine Kerosene (ATK) to serve the country.

    NNPC advised motorists not to engage in panic buying, adding that they report any challenge they may have in the course of purchasing to the Department of Petroleum Resources (DPR) which is statutorily empowered to deal with such issues.

    DPR has offices located in all parts of the country.

    Meanwhile, the government is working assiduously to arrive at an amicable resolution of outstanding issues with the industry unions.

  • Oil giant gets agreements to guarantee fuel supply

    Oil giant gets agreements to guarantee fuel supply

    The Nigerian National Petroleum Corporation (NNPC) has secured an interim Offshore Processing Agreement (OPA) with three of its Joint Venture companies namely Duke Oil, Carlson and Napoil, to boost the supply of refined petroleum products.

    This followed its determination to sustain the prevailing unimpeded nationwide supply and distribution of petroleum products.

    A statement yesterday by NNPC spokesman Ohi Alegbe, noted that the stop-gap OPA arrangement which is designed to run for three months obliges the Corporation to allocate a certain volume of crude oil within the period for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.

    The Corporation explained that the temporary OPA package will lapse with the advent of the fresh OPA contracts envisaged to come into effect at the end of the ongoing public tender process.

    It noted that the OPA arrangement would help augment in-country production of refined petroleum products from the nation’s refineries to meet local demand.

    The statement reads: “Determined to sustain the prevailing unimpeded nationwide supply and distribution of petroleum products, the Nigerian National Petroleum Corporation, NNPC on Wednesday announced an interim Offshore Processing Agreement (OPA) with three of its Joint Venture companies namely Duke Oil, Carlson and Napoil to boost the supply of refined petroleum products.

    “The NNPC stated in a release that the stop-gap OPA arrangement which is designed to run for three months obliges the Corporation to allocate a certain volume of crude oil within the period for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.

    “The Corporation explained that the temporary OPA package will lapse with the advent of the fresh OPA contracts envisaged to come into effect at the end of the ongoing public tender process.

    “It noted that the OPA arrangement would help augment in-country production of refined petroleum products from the nation’s refineries to meet local demand.

  • Sustaining fuel supply in 2014

    Sustaining fuel supply in 2014

    Despite oil theft and pipeline vandalism in 2013, the Ministry of Petroleum Resources sustained products supply. There is need to maintain the tempo in 2014, writes EMEKA UGWUANYI, Assistant Editor

    Nigerians last year enjoyed unprecedented stable supply of petroleum products. Besides the stability, the pump price also remained stable at N97 per litre through the festive oeriod.

    Although some motorists slightly hiked their fares, it was not as a result of fuel scarcity, which has in the past characterised such festivities, creating undue hike in fares and suffering for travellers.

    Those who travelled during the festive periods to different parts of the country, testify that the every part of the country was streamed except in some rural areas where owners of petrol stations adjusted their pump prices to between N100 and N105 per litre.

    Beside the unpleasant stories of how houses went up in flames and passengers burnt to death following hoarding of fuel or carrying kegs of fuel by motorists in order not to run out of petrol, are not heard of or read. Unlike in the past when retail outlets were dry and the few that sold had long queues, the filling stations have sufficient stock and sell without queues; therefore, there is no need to hoard or carry fuel about in vehicles.

     

    How NNPC sustained supply

     

    The sustained sanity in the supply and distribution segment of the downstream petroleum industry, according to the Nigerian National Petroleum Corporation (NNPC) and other relevant agencies in the value chain, such as the Pipelines and Products Marketing Company (PPMC) and the Petroleum Products Pricing Regulatory Agency (PPPRA), was achieved based on the directive of the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke.

    Mrs Alison-Madueke, the agencies said, directed that all distribution and storage infrastructure be revamped while PPPRA ensured that guidelines on drawing from petroleum subsidy fund (PSF) are strictly followed.

    It was based on the minister’s directive that the NNPC and PPMC embarked on aggressive revamp of key downstream facilities, such as PPMC depots and product supply pipelines, which have hitherto remained out of use.

    According to PPMC, only three out of its 23 inland storage depots spread across the country are awaiting repairs, adding that its dilapidated depots and ancilliary pipelines in Aba, Benin, Suleja, Gombe, and product evacuation and reception jetty in Okrika, Rivers State, among others, have been turned around and are working efficiently.

    To prevent pipeline vandalism and ensure uninterrupted supply and distribution, the minister ordered the deployment of Horizontal Directional Drilling (HDD) at Arepo and Ije-Ododo, which were havens for pipeline vandals and petrol thieves. The approval of subsea bypass pipeline project to enable import of heavy crude to Kaduna refinery helped in improving products availability. These infrastructure have been abandoned for upwards of 10 years, but the minister ordered their revamp and clearing of the pipelines’ right of way and fixing of the pipelines for efficient distribution of products.

    The Nigerian Army Engineering Corps was awarded the contract to clear the pipelines right of way across the country; work has been completed on the Atlas Cove- Mosimi-Ibadan axis, Port Harcourt-Bonny line have also been completed while work was ongoing at other lines where people have encroached on and even built houses on top of the pipes, the NNPC said.

    To supplement the effort of the inland depots, the PPMC said it maintained a sustainable large stock of products at sea on massive vessels, especially offshore Lagos to serve as buffer for 32-day product sufficiency.

    Also, the continued flow of petroleum products was sustained as a result of implementation of some reform programmes in the last two years. Such reforms, including the implementation of the PSF by the PPPRA, led to huge reduction in national consumption of petrol from 60 million litres per day as witnessed in 2011 to 40 million litres per day, which saved the country billions of naira.

    Mrs. Alison-Madueke had attributed the success to President Goodluck Jonathan’s Transformation Agenda in the downstream subsector, which led to strategic management of petroleum products supply and distribution.

    “In spite of these savings,” she said, ‘’we have also been able to maintain stability of products supply, while putting in place, stringent regulatory conditions which would make it difficult for dubious marketers to short-change the system.”

    She said the Federal Government had done well in the stopping fuel subsidy scams, adding that efforts at ensuring transparency and accountability were yielding positive results.

    She also said the reforms were carried out to address pervasive malpractices in the oil and gas sector, to engender public trust and belief in government’s sincerity in the downstream sub-sector.