The Nation Newspaper

Tag: fuel

  • IPMAN urges DSS to stop fuel price enforcement

    The Independent Petroleum Marketing Association of Nigeria (IPMAN) has appealed to  Director of State Security (DSS) operation to leave fuel price for its Task Force on Petroleum Monitoring in Kogi State.

    The Federal Government directed that the Premium Motor Spirit (PMS) be sold at N86.50 per litre.

    Leader of the IPMAN task force in the state, Mr. Nwozuzu Henscchenl, whose operatives with men from the Nigerian Security and Civil Defence Corps (NSCDC), moved  around fuel outlets across the state, said interference by some DSS officers hampered their work.

    The team sealed some petrol stations in Lokoja, the state capital, for selling fuel above the approved price.

    Other infractions by the filling stations, he said, include shortchanging of customers through adjustment of dispensing meters and selling at an average of N110 per litre.

    He said the taskforce’s operations, which lasted two days, led to the shutting of some petrol stations, including three in Lokoja. He alleged that he was inundated by calls from people claiming to be DSS operatives, requesting that they either release those arrested or reopen sealed outlets.

    Asked to identity those who called him, Henschenl said he did not know them. He however said when he called the DSS office in Lokoja, he was assured that none of their operatives would engage in any illegality.

    “The places we visited so far, what we saw on their meters is N86.50, but that is in disguise. Mostly, they use calculator and sell at N110; we have our exhibits. Not only that, most of them shortchange customers by dubiously adjusting their meters; when you buy say 10 litres, what you get could be nine litres.

    “We experienced a lot of interference. For example, when we embarked on night enforcement, a lot of the stations had closed, having gotten wind of our operations during the day. After a while, some came, saying they were officers from the DSS, and I had to soft-pedal to manage the situation,’’ Henschenl said.

    He said he had called the DSS headquarters in Abuja to ascertain their identity and complained about their nefarious activities in the state.

  • Nigeria ‘imported N20.2tr fuel in five years’

    Nigeria ‘imported N20.2tr fuel in five years’

    Nigeria spent N20.2 trillion to import petrol, diesel and kerosene between January 2010 and September 2015, the Nigerian Bureau of Statistics (NBS) has said.

    Figures jointly compiled by both the NBS and the Petroleum Products Pricing Regulatory Agency (PPPRA) released at the weekend indicate that N12, 529, 746, 397, 978. 48 was spent on the importation of 102,374,588,480.91 litres of petrol (Premium Motor Spirit).

    An amount of N6,450,576,065,479.43 was spent to import 16,679,065,103 litres of diesel (Automotive and Gas Oil).

    Between January 2012 and September 2015, N1,271,500,290,241 was spent on the importation of 9,448,409,070 litres of kerosene.

  • Negligence, vandalism turn fuel depots to sludge tanks

    Negligence, vandalism turn fuel depots to sludge tanks

    The Products and Pipelines Marketing Company (PPMC) was established in 1988 as a subsidiary of the Nigerian National Petroleum Corporation (NNPC) to ensure that Nigerians irrespective of where they live, have access to uninterrupted fuel supply. But the pipes that should make the flow seamless have gone dry and abandoned.  The storage depots, which the pipes were meant to feed, have also become tanks for waste materials. The distribution of products to filling stations in tankers has been the saving grace and the Southwest, especially Lagos State, where these facilities work, now bears the burden. EMEKA UGWUANYI takes a critical look at invasion of fuel-laden trucks on the roads. 

    With over 5,120 kilometres of pipeline network, 21 depots and a couple of booster pump stations and jetties, petroleum products should be available and accessible to Nigerians across the country.

    But, this has not been the case as negligence and vandalism have taken a toll on these legacy assets built by the Federal Government to take fuel from the 445,000 barrels per day capacity refineries.

    Besides, many of the depots have become storage facilities for waste, owing to disuse.

    Apart from depots in the Southwest, most of the depots belonging to the Nigerian National Petroleum Corporation (NNPC) have gone moribund.  The development led to the use of trucks for the bridging of products to other states of the federation from the few functional depots.

    There has been influx of fuel tankers into Apapa, Lagos, where most of the private sector-owned depots are located. The tank farms are concentrated in the axis because of the Sea Ports at Apapa.

    Indiscriminate parking of the trucks as they await their turns to load products often creates unimaginable gridlock, causes  man-hour losses, stalls socio-economic activities and endangers the lives of others.

    Many, who have property in  Apapa, no longer have value for their investments as the perennial traffic has forced businesses out of the area, even as not a few residents have abandoned their apartments for more serene and quiet neighbourhoods.

    The reactivation of the refineries in Port Harcourt, Warri and Kaduna, has exposed the integrity of some of the pipelines. Many of them could no longer withstand pressure as the facilities resume production in an effort to cut importation of refined products. They lost integrity due to age, and lack of maintenance.  But, the major problem has been the menace of vandalism.

    Oil thieves and economic saboteurs have been frustrating the efforts of the Pipelines Products and Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and owners of the pipelines. The vandals return to rupture the pipes to scoop fuel, almost after their repair by the authorities.

    As at last month, the Federal Government said no fewer than 16 of the 21 depots were in working condition but that there were no pipes to supply products to them. Hence, they have been idle.

    The immediate past Managing Director, Prince Haruna Momoh, confirmed this at a forum in Lagos. He said 80 per cent of the pipeline network for petroleum products distribution had been vandalised.

    According to him, the damaged pipelines have been the bane of the chaotic traffic situation and unending gridlock on Apapa road, as thousands of tankers have no option than to besiege the depots at Apapa to load petroleum products en route other parts of the country.

    Last week, the NNPC said it has shut down its refineries in Port Harcourt and Kaduna due to crude supply problems related to recent attacks on pipelines in the Niger Delta by militants.

    “The plants were shut simultaneously on Sunday (penultimate) after the Bonny-Okrika crude supply line to the Port Harcourt refinery and the Escravos in Warri. The crude supply line to the Kaduna refinery suffered breaches,” the NNPC said.

    The Nation learnt that before the Kaduna pipeline was fixed, all  refined products from the facility were either trucked out, or transported to the depots on barges.

    Momoh admitted that pipeline vandalism and rupture was hampering seamless distributing of products through existing pipelines.

    He said the twin-challenge of pipeline vandalism and rupture due to age, coupled with the limited number of jetties, account for the high number of vessels on the high sea, waiting to berth. According to him, the inadequate berthing space prevents timely receipts of products and this leads to increasing costs incurred on demurrage and other charges.

     

    The depots

    Apart from private depots and jetties, the Federal Government owns and manages storage depot system  with mainline and booster pump stations. All these help the pipelines to enhance consumers’ access to products. These facilities, managed by the PPMC, are administered under five zones known as operations areas.

    Each operation area has an administrative office under its control and such area is headed by an area manager. The five area offices are: Port Harcourt, Warri, Mosimi, Kaduna and Gombe.

    The Port Harcourt area has under its jurisdiction: Port Harcourt depot; Okirika jetty; Aba, Enugu, Markudi and Calabar depots as well as Bonny export terminal. The Warri area office has under it, Warri depot, Warri Jetty, Benin depot, Abudu, Auchi and Lokoja pump stations, and Escravos terminal. The Mosimi area office has Mosimi depot, Atlas Cove Jetty and depot, Satellite (Ejigbo Lagos), Ibadan depot, Ore, and Ilorin depots.

    Under the Kaduna area office are Kaduna depot, Abaji, Izom pump stations, Minna, Suleja depots and Sarkin Pawa, and Zaria pump stations, Kano and Gusau depots.  The Gombe area office has Jos, Gombe, Yola depots, Biu pump station and Maiduguri depot.

    The Managing Director of PPMC, Mrs. Esther Nnamdi Ogbue said the government has carried out an impact assessment on the depots with a view to determining their level of viability and how to resuscitate them.

    Mrs. Ogbue, who was on an official visit to the depot at Mosimi, noted that efforts were being made to reactivate the depots. The strategic locations of the depots and the huge volumes of fuel they were pumping before they went moribund, informed government’s resolve to fix them.

    She said: “In places like Makurdi and Yola, petroleum products have not been pumped from depots in those areas in the last 10 years, and that means the government has to move products with trucks from Calabar to Enugu to Aba to Yola.”

    Mrs. Ogbue also stated that the government is not leaving any stone unturned to ensure that the pipelines are effectively managed and further benefit the operators, especially marketers, who have the duty  selling fuel to consumers.

    Besides the economic and social impacts these dysfunctional pipes and depots have on the populace, the Federal Government loses huge money yearly on their repair.

    Mrs. Diezani Alison-Madueke, a former minister of Petroleum Resources, said about $5.7 billion was being spent yearly to fix the pipelines, damaged by vandals and oil thieves.

     

    Restoration measures

    In the past two years, the Federal Government has been exploring the use of Horizontal Directional Drilling (HDD) and use of modern technologies such as digital mechanism that will connect the pipelines with sensors to alert whenever any part of the pipeline is being vandalised, as well as mounting intense surveillance and pigging. The government has started replacing ageing pipes.

    Minister of State for Petroleum Resources, who doubles as NNPC   Group Managing Director, Dr. Ibe Kachikwu, said a plan to unbundle the PPMC has concluded plans to create a sustainable solution. One unit, which he said, will focus solely on pipelines, will ensure the timely repair and replacement of faulty pipes. The unit will ensure that refined products get to the depots across the country.

    “The PPMC would be split into a pipelines company that would focus primarily on the maintenance of the over 5,000 kilometres of pipelines of the company; a storage company that would maintain all the over 23 depots and a products marketing company that would market and sell petroleum products,” he said.

    After the unbundling, the government will contemplate the privatisation of pipelines to minimize perennial vandalism and ensure availability of products across the country at the right price.

    In the short-term, all the fuel trucks must be tagged and tracked, warning that any untagged trucks and those not fixed with trackers, will not be allowed to load products at the depots. The measure, if implemented, will check diversion of products.

    The minister said that the government would consider refinery models to determine how best to tackle the problems of the nation’s four refineries currently working below optimal levels.

    According to him, when the refineries work at installed capacities, and their products get to the depots, it will take away many off the roads and drastically reduce pressure on the depots in Lagos.

    He said: “We are going to be looking seriously at the refinery models. How do we deal with it? How do we bring people to assist us on technical and investment basis to get these refineries in much more consistent and permanent basis?”

    Kachikwu also spoke of a plan  to considere community surveillance, saying his ministry and the NNPC may engage the communities where the pipelines have right of way, to monitor and secure them.

    NNPC spokesman Ohi Alegbe also told The Nation that the Corporation has kicked-off the repair and replacement of old pipes.

    According to him, the Kaduna pipeline has been fixed and supplying crude to the Kaduna Refinery and Petrochemical Company (KRPC).

    Other pipeline projects, he said,  are ongoing. He, however,  declined to list them. “The NNPC doesn’t want to make noise about them, so that vandals don’t go to damage them.”

  • NECA praises Fed Govt on fuel price modulation

    NECA praises Fed Govt on fuel price modulation

    Employers under the aegis of Nigeria Employers’ Consultative Association (NECA) has praised the Federal Government for the new fuel price modulation.

    Speaking with The Nation, the Director-General of NECA, Mr Olusegun Oshinowo, said hopefully, the issue of fuel subsidy and its financing would not surface again in the government’s budget. He said it is pertinent for government to focus on the policy framework as well as incentives that will ensure that Nigeria is self-sufficient in the refining capacity to meet her energy needs.

    Oshinowo, however, noted that the organised private sector is expecting a decisive, unambiguous and explicit policy statement that fuel subsidy regime has ended. He said government should also ensure the privatisation of the four refineries and jointly agree on a timeline and modalities with investors on the utilisation of the licences already issued for the setting-up of private refineries.

    Oshinowo stated that there should be redefinition of the role of the Petroleum Products Pricing Regulatory Agency (PPPRA) as an ombudsman. This, he said, would ensure compliance with products standards and fair competition that would guarantee reasonability of products pricing.

    He urged the government not to delay any in pursuing the points listed by NECA.

  • ‘How to achieve steady fuel supply’

    ‘How to achieve steady fuel supply’

    The Independent Petroleum Marketers’ Association of Nigeria (IPMAN), has urged the Federal Government to support the Nigerian National Petroleum Corporation’s (NNPC’s) decision to supply petrol to IPMAN members to stem scarcity.

    Last month, as part of its intervention measures to stem fuel scarcity, resumed supply to members of IPMAN. The Corporation’s decision led to massive truck out of premium motor spirit (PMS) to members of IPMAN, which helped to check exploitation of motorists by scrupulous marketers during the Yuletide season.

    IPMAN’s National Operation Controller Comrade Mike Osatuyi told Southwest Report that but for NNPC’s massive supply of petrol to its members in December to address the scarcity across the country, the price could have been astronomical. He said over 300 trucks of PMS were supplied by NNPC last December 24 last year, making it possible for Nigerians to access fuel without much stress.

    Osatuyi said if the Corporation continues to partner with members of IPMAN, the country will not witness fuel scarcity again because members of the association own 84 per cent of the total filling stations in the nation.

    “Members of IPMAN own and control about 84 per cent of the retail outlets in this country. So, now the government is ready to work with us, we too are ready to work with them. If they give us the fuel, we will sell it. NNPC can only supply 52 per cent of our national need. I understand and have confirmed that they have stepped up importation to bridge the gap. I believe they will sustain the intervention. If they sustain it, we are ready to sell to the public at government’s approved price.”

    Osatuyi, who also owns retail outlets, stated that one of his filling stations, Nyce Petroleum located at Akute, Ogun State, benefited from the NNPC’s intervention measure. He said his filling station got two trucks of 40,000 litres and 36,000 litres, making a total 76,000 litres of petrol.

    He said their members across the country benefitted from the intervention, adding that NNPC’s decision, if sustained, would go a long way in ending fuel scarcity and selling of petrol above government’s approved pump price. He assured that his station and those of other members of IPMAN would continue to comply with government’s directive and ensure a 24-hour sale so that motorists and commuters would not suffer.

    He said: “Our members want to thank the Federal Government for what it is doing in terms of PMS intervention scheme. You can see that the government is bringing petrol to dealers to sell at official price and we are doing that. They brought two trucks to my station. This is unbelievable. We have never seen this before. I want NNPC/PPMC (Pipeline and Product Marketing Company) to continue and sustain it. We at IPMAN can assure the government that we will support them now they have agreed to partner with us. We will not fail them. This is for the benefit of the masses, which the government of President Muhammadu Buhari stands for.”

    Osatuyi, however, noted that the ultimate thing for the government to do is to deregulate the downstream sector.

    He said since former President Olusegun Obasanjo deregulated diesel about 14 years ago, nobody has heard anything about diesel scarcity. If petrol is deregulated, we will have various prices of marginal differences but fuel must be available.

    He said sharp practices are carried out by some marketers because the product is regulated and inadequate, noting that with deregulation, motorists will avoid buying from retail outlets that don’t operate transparently.

    During last year’s fuel scarcity, some marketers sold petrol between N120 and N150 per litre as against N87 depending on the part of the country. Besides, some of these marketers sold with under-dispensing pumps despite the high price.

    It is not only IPMAN that calls for deregulation of the price of PMS, the Major Oil Marketers Association of Nigeria (MOMAN) and other dealers as well as the International Monetary Fund (IMF) want the price deregulated. The IMF recommended an automatic price change mechanism that will occur slowly.

    The NNPC has also started price modulation, which will ensure slow price decrease or increase depending on the price of crude at the international market.

  • Oil marketers defy govt orders, sell fuel above N86.50

    Many filling stations across Benin City, the Edo state capital  yesterday shunned the Federal Government’s directive on the new pump price for petrol as they continued to sell the product at either the old regulated price of N87 per litre or above it.

    While majority of the filling stations around Ekenwan, Akpakpava were not selling fuel, only  MEGA station on Sapele road was selling petrol for N86.per litre, with a relatively long queue.

    Also, at an NNPC retail station in Upper Sakponba road, petrol was sold for N87 despite the Federal Government’s directive.

    A fuel attendant told our correspondent on condition of anonymity, that motorist should appreciate them after all “Others are selling for as much as N145-N 150 per litre

    But other independent marketers who were dispensing the product sold to motorists and other buyers at between N115 and N150 per litre.

    It would be recalled that the Petroleum Product Pricing Regulatory Agency on Tuesday announced that retail filling stations belonging to the Nigerian National Petroleum Corporation would from Friday, January 1, 2016, sell petrol at N86 per litre, while other oil marketers would sell the product at N86.5 per litre

  • Partial compliance as new fuel price regime takes off

    Partial compliance as new fuel price regime takes off

    There is yet to be substantial compliance by fuel marketers in most parts of the country with the directive to dispense fuel at N86 and N86.50 per litre, investigation showed yesterday.

    The exception is the Federal Capital Territory (FCT) where most marketers have adjusted their metres to comply with the new pump price of N86.00 per litre for premium motor spirit (PMS) at Nigerian National Petroleum Corporation (NNPC) filling stations and N86.50 at other outlets.

    NIPCO petrol stations at Kubwa, Abuja were selling at N86.50 while the NNPC stations that were opened to customers all complied with the new price of N86.00 per litre.

    The Total petrol station on Arab Road, Kubwa however sold fuel for the old price of N87 per litre.

    Asked why the station was yet to comply with the new price, the attendant said: “We are waiting for the Department of Petroleum Resource (DPR) to come and adjust the meters.”

    The Nation observed that although some stations were under lock and key, the product was not scarce, as there were no queues.

    Retail outlets of major marketers, including Mobil, Conoil and Total as well as NNPC stations visited by The Nation in Lagos, complied while most of the stations owned by independent marketers sold at N87 per litre of PMS.

    The Nation’s investigation showed that NNPC retail station at Ogunnusi Road in Omole, Mobil in Agidingbi, among other in Ikeja area of Lagos State sold at N86 and N86.50 per litre while Conoil station at Oba Adejobi Street, opposite LASUTH also sold at N86.50 per litre.

    Most of the independent filling stations sold at N87 and above per litre. The station managers said they still had old stock and if they should sell at the new price, they would be selling at a loss as their margins were insignificant.

    They vowed that subsequent supplies they would get would be sold at the new price.

    The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, said members of his association were still selling at old price because they had old stock, adding that they would revert to the new price soon.

    He said: “They are selling their old stock. Market forces will compel everybody to comply. People should see the policy as a policy that will unlock the sector.

    “I am sure they will change to new price once they finish the old stock and work with the new regime of President Muhammadu Buhari. I think they will begin to think out of the box to move the sector forward.”

    The Department of Petroleum Resources (DPR) warned that sanction awaits defaulters.

    The DPR spokesperson and Assistant Director, Public Affairs, Mrs. Dorothy Bassey, said the government had ordered total compliance and any deviant station would be appropriately punished.

    She said: “We have instituted effective monitoring team in place that will go out to monitor the level of compliance with the new pump price. Non-compliant stations will be appropriately sanctioned.”

    Most of the fuel stations in Ejigbo, Mushin,Ketu and Ojota  in Lagos were closed.

    Residents and commercial drivers said they had to resort to black market fuel sellers to buy fuel for their business at N150 per litre.

    A commercial tricycle operator plying Jakande Estate gate, Oke-Afa and and Iyana Isolo, who gave his name as Suleiman Ariyo, did not understand why the filling stations did not open for business.

    Most of the petrol stations in Ibadan, the Oyo State capital, which operated yesterday, continued to sell at N120 per litre.

    However,the Nigerian National Petroleum Corporation (NNPC) mega station on Ojoo/Iwo Expressway, sold the product at the official price of N86 while a notable independent marketer, BOVAS, also sold at the official price of N86.50k to motorists.

    There were no queues as motorists bought the product with ease.

    Transport fares have already gone up in the state.

    For instance, Ojoo to Iwo Road, which was N50, is now N100. When asked about the increment, a driver who simply identified himself as ‎Morufu, said that it had to do with the high cost of fuel.

    He said: “I bought mine before the price crashed. I filled my tank and you cannot prevent me from making profit during this festive period.”

    Fuel marketers in Benin, Warri, Asaba, Kano, Uyo, Osogbo, Ilorin, Akure and Jos were also yet to comply with the new price regime last night.

    In Edo State, most fuel stations monitored sold at N140 while the NNPC mega station on Sapele Road sold fuel at the approved pump price of N86.

    Total Filling station along Akpakpava sold fuel for N86.50k.

    Many of the station managers declined comments when they were asked why they were selling above pump price.

     Long queues persisted in most filling stations in Kano as supply of fuel was low. Prices ranged between N110 and N115 per litre

    A task force set up by the Kano State Government to ensure smooth sale of fuel directed filling stations not to sell more than N5000 worth of fuel to anyone.

     The committee has also embarked on night monitoring of the sale of the product.

    The manager of a filling station, who did not want his name in print, said: “As we speak, most filling stations in Kano do not have fuel in stock. How do you expect us to comply with the directive to sell fuel at N86.50 kobo per litre?”

    The situation was not different in Port Harcourt, Osogbo, Akure, Jos, Uyo, Asaba and Ilorin where fuel sold well above N120 per litre where available.

     A commercial driver in Port Harcourt said: “I hoped when I was leaving home this morning (yesterday) to buy fuel at N86.50k, but I have visited several stations at Mgbuoba and Aba Road axis with all of them selling at N150 and N140 respectively.

    Many motorists in Ilorin travel as far as  Osun, Oyo and other neighbouring states to buy fuel in view of its scarcity in the Kwara State capital.

    The state chair of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, said his members wee yet to switch over to the new price regime of N86.50k.

    Okanlawon added that where available, members were still buying petrol at the old price.

    “We will start buying the product at the new official rate before motorists in Ilorin will start enjoy the price regime from IPMAN members,” he said.

    The three Nigerian National Petroleum Corporation (NNPC) mega stations in the metropolis were also put under lock and key.

    There was partial implementation of the new fuel price in Jos, the Plateau State capital, with the NNPC mega station selling at N86 while other independent marketers still sold at the old price of N87 per litre.

    When contacted, Mr. Douglas Ceaser, Comptroller of Jos DPR, said, “We are not aware of any new price.”

    Nnamdi Okorigwe, a driver in Asaba, urged the Federal Government to ensure implementation of the new pump price, adding that many filling stations owners had resorted to hoarding fuel.

    A source who spoke on behalf of independent petroleum marketers but pleaded anonymity argued that they (independent marketers) had not exhausted their old stock which they bought at exorbitant rates.

    He said selling at government-approved pump price would have an adverse effect on their profits.

    But the Department of Petroleum Resources (DPR) has already swung into action by sealing off a sales outlet owned by an independent petroleum marketer within Asaba metropolis.

  • DPR begins 24-hour surveillance on depots, filling stations

    The Department of Petroleum Resources (DPR) says it has set up a 24-hour special task force to supervise and monitor petrol sales at depots and stations.

    It said that the task force would sanction depots and stations selling above the recommended price.

    Mrs Dorothy Bassey, Assistant Director, Public Affairs in DPR, disclosed this in telephone interview with the News Agency of Nigeria (NAN) in Lagos on Thursday.

    Bassey said the special team was set up purposely for the Yuletide with powers to take over the sale of the product from those selling above the approved price.

    She said that the agency had met with stakeholders to convey government’s displeasure on illegal sale of petrol above the stipulated price and the long queues at the filling stations.

    The DPR warned that those involved in the criminal act would henceforth lose their licence under the new steps being taken by agency to enforce discipline.

    “We have instituted 24-hour surveillance by special task force which we are not going to disclose their identity because we don’t want them to be harassed.

    Bassey said that those selling petrol above the pump price were doing so at night.

    She said that any station caught would be forced to sell at the official price “so that we don’t seal them to compound the scarcity”.

    She said that the agency had some dedicated numbers on its Website through which Nigerians could send their complaints.

    Meanwhile, some marketers, who preferred anonymity, told NAN that the ongoing petrol scarcity would persist as government had failed to address issue of foreign exchange hindering fuel importation.

    They said that marketers were willing to import fuel, but scarcity of foreign exchange remained a serious challenge.

    NAN correspondent, who monitored sale of petrol in parts of Lagos on Thursday, reported that queues were seen in some filling stations on Ikorodu Road, Maryland and Alaka area.

    Many stations were still not selling petrol.

    Some stations in Epe, Ibeju-Lekki and Ikorodu were selling petrol between N100 and N 110 per litre.

  • VISA rewards winners of free fuel promo

    VISA rewards winners of free fuel promo

    VISA, in partnership with Total Nigeria, has rewarded winners who took part in its free fuel promotion meant to improve e-payment card usage in the country.

    Eight lucky customers out of 1,100 who participated in the grand raffle draw by sending SMS to a short-code, were rewarded with free fuel at any Total service station for a year, with customised Visa card worth N260, 000 and billed to expire in four years given to them.

    Also, 3,500 customers participated in the instant winning of N1,000 worth free fuel available daily to 10 Visa card users who buy petrol worth N3000 and above from any of the seven designated Total service stations in Lagos.

    Country manager, VISA West Africa, Mr. Ade Ashaye at the presentation to the winners, said it is a thing of joy to see the number of Nigerians who participated in the promotion to promote and educate consumers and businesses on the convenience of making payments for fuel and other commodities through e-payment.

    He said the objective is to drive the cashless policy in Nigeria through e-commerce and they understand that card payments are more secure than cash payments for both buyers and sellers, as the challenge is that most people used their card to redraw cash and not to purchase items which is what they aiming to change.

    “It is a pilot scheme and we take the learning’s from it to make the promo better for future events. and even Total operative said he uses the promotion to train his staff  on how to accept card for purchases made as fewer cash transactions but card transactions is the key focus for the promotion”, he added.

    The Network Development Manager, Total Nigeria, Maxence Bourgoing said: “We are happy to work with Visa on this project. Total has invested a lot in ensuring that our service stations are up to international standards and this partnership is certainly a step in the right direction.”

    Bourgoing said globally, there is a drive towards e-commerce and card payments and “we are happy to be at the forefront of this initiative in Nigeria. TOTAL service stations are a key interaction point with our customers and so we promise to continuously offer innovative payment solutions that make purchases as seamless as possible.”

  • Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    NEITI supports subsidy removal

    The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu yesterday said  the Federal Government will not scrap the Petroleum Support Fund (also known as subsidy) but will, instead, embark on price modulation.

    He denied saying  the price of petrol will go up in January.

    Addressing a press conference in Abuja, he said the Nigerian National Petroleum Corporation (NNPC) will alongside the Petroleum Product Pricing Regulatory Agency (PPPRA) sit to determine the new template to arrive at a new price which will be subject to quarterly review in line with the price of crude oil.

    He explained that government is planning to use N87 and N97 as a ceiling for the price modulation at every given time instead of fixing the fuel price without basis.

    Kachikwu said: “ I did not say that refine product will sell N97 next year. That is not what I said. I said between a bound of N87 and N97. We are going to look at the prices.

    “Today the price is close to N87 so there might be no need to change prices. By January, it may well go up slightly. By February it may well go up slightly. But March it may well go up slightly; by April, it may come down.

    “So it is all a dynamic of what the price of crude is. So I have not put a static figure; myself and PPPRA will sit down to do the calculation to be able to announce what the PMS will sell for in January.  We do not anticipate any major shift in the cost of crude today.”

    The minister who lamented that the Federal Government spent  an unbearable over N1 trillion on fuel subsidy this year said NNPC has to take measures to whittle some of the cost elements of the subsidy template.

    He said government will now look at how to reduce its allocation to the Petroleum Equalisation Fund (PEF) and foreign exchange.

    He said: “Now what we are doing is review the PPPRA template – how we can whittle down some of the cost elements – the cost for clearing, allocation for PEF? We will reduce – foreign exchange provision (what do we do with the foreign exchange so that some stability in the exchange rate (is acheived?)

    “ It is a key component that when you deregulate, you are back to square one or so. So we are looking at how do we provide allocation in the oil industry so that there is certainty in terms in the regime for FS and that saves you the exchange component in the whole analysis.”

    He said President Muhammadu Buhari has resolved that government will get a technical partner to repair and run the refineries and bring out its investment.

    However, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said removal of the subsidy will free over N700 billion  annually which can be channeled to provision of infrastructure like roads, education, health service, power, security, creation of jobs and basic benefits for the poor in the society.

    The statement said that while addressing  a Policy Roundtable on Subsidy Removal Debate organized by the Shehu Musa Yar’Adua Centre in Abuja,  the Acting Executive Secretary, Dr Orji argued; “From NEITI’s independent audit report, over N4 trillion has been paid as subsidy to marketers from 2006-2012. The breakdown of the subsidy shows that N2.197Billion was paid as subsidy in 2006. This rose to N236.64Billion in 2007 and N360.1Billion in 2008. In 2009 the country paid N198.1Billion as subsidy for petroleum products and in 2010 the subsidy payment rose to N416.45Billion. The payments skyrocketed to N1.9 trillion in 2011. Payments of oil subsidy declined to N690Billion in 2012 following the subsidy protests across the country in January of that year”.