The Nation Newspaper

Tag: fuel

  • No plan to increase fuel price, says Senate panel chair

    •CNPP backs labour, students

    The National Assembly has denied any plans to increase the pump price of Premium Motor Spirit (PMS) by N5, saying such an action has not been discussed on the floor of the Senate.

    Senate Committee on Works Chairman Kabiru Gaya (APC-Kano) made the clarification in an interview with reporters in Abuja at the weekend.

    But despite the clarification, the Conference of Nigeria Political Parties (CNPP) threw its weight behind Nigeria’s organised labour over the “planned increment”.

    CNPP accused the National Assembly of taking more anti-people decisions than resolutions that could better the lives of the already impoverished masses.

    Gaya, however, said information about the “Road Fund Bill” proposed by his committee was misinterpreted, saying that those speculating it are creating negative perception in the hearts of the people against the Senate.

    The senator, who accused some persons of trying to make mountains out of mole hills, said the misinformation on the proposed bill was an attempt aimed at denting his image and that of the President Muhammadu Buhari’s administration by mischief-makers, who should rather educate the public on the true position of the bill.

    He said: “They said the Senate is increasing fuel price? That was wrong! They don’t even understand what we are talking about. In the last seven years, I have been in the Senate. There was a N5 levy for which the Petroleum Pricing Regulatory Agency (PPRA) was supposed to be deducted, not to increase, even when pump price was sold at N87 per litre from the amount sold and remit to FERMA to maintain roads.

    “From our calculation, PPRA has not paid N167 billion to FERMA. I raised this issue then and wanted to continue this time again that the same N5, which was supposed to be paid before and they didn’t pay and now should also be deducted and removed from the N145 not to increase.

    “People are complaining because they don’t know the challenges before we in the Committee of Works. We have a lot of work to do because there are about 34 projects that were not included in the 2016 budget. But we make sure that they are now included in the 2017 budget.

    “They were in 2016 budget but were shortchanged and the Buhari administration approved these jobs, but they were not in the contracts in the budget. So, we said there is no way the executive council will approve a project and it’s been announced and it is not included in the budget.

    “The Committee of Works said these projects should be included and we commended the Senate President and the Speaker of the House, who ensured that those projects are included in the budget.”

    But the CNPP, in a statement by its Secretary General, Chief Willy Ezugwu yesterday, said: “We assure the Senate and the Federal Government that their proposed N5 per litre of fuel tax will be resisted.”

    The Alhaji Balarabe Musa-led umbrella body of all registered political parties and associations in Nigeria also warned the Presidency of the imminent consequences of adding to the pains of the ordinary people of Nigeria by raising the pump price of fuel under any guise.

    “Our findings have shown that the bill titled: ‘National Roads Fund (Establishment, etc) Bill 2017’, proposing that N5 to be paid per litre of fuel imported into the country is a ploy by the Federal Government to impose more hardship on Nigerians at a time the burden of recession in the country is becoming unbearable.

    “We thought that the Federal Government should be thinking of reducing the already biting hardship in the country after failing to fulfil the promised increment in minimum wage and non-payment of arrears of workers’ salaries and allowances in the past two years.

    “It seems that the current government at the federal level and their National Assembly collaborators enjoy inflicting more and more pains on Nigerian masses.

    “We wonder why the Senate Committee on Works in its final report on the bill would make such proposal.

    “Are they saying that the only way this government can raise funds is by increasing pump price of petroleum prices and punishing the masses?” the CNPP queried.

    The Nigerian organised labour, students and others have vowed to resist any attempt by government to indirectly or otherwise introduce a hike in the pump price of fuel, given the country’s economic hardship.

  • ‘Fuel supply sabotage’: NUPENG wing faults DSS allegation on Ubah

    The Petroleum Tanker Drivers’ (PTD) wing of the National Union of Petroleum and Natural Gas Workers (NUPENG) yesterday faulted the Department of State Security Services (DSS) over allegation of collaboration with the Managing Director of Capital Oil and Gas Limited, Ifeanyi Ubah, to disrupt distribution of petroleum products.

    It said no individual or institution can be allowed to use tanker drivers to cause any economic sabotage.

    The union, which made the clarifications in a statement by its national chairman, Otunba Salmon Oladiti, dismissed the allegation as ”baseless, unfounded  and totally untrue”.

    The DSS linked Ubah’s arrest to alleged plans to incite members of the PTD, a critical player in the downstream sub-sector of the petroleum Industry, to refuse/stop the lifting of products.

    But the tanker drivers, through their chairman, said there was no way its members could be used for economic sabotage.

    Oladiti said the union has no relationship with the firm’s chief, ‘’ beyond the precinct of promoting, projecting and protecting the security of jobs and welfare of our members”.

    The statement said: “We read from an online publication the arrest of Ifeanyi Ubah for stealing and diversion of petroleum products worth N11 billion and further allegation of inciting Petroleum Tanker Drivers to cause economic sabotage.

    ‘’The leadership of the Petroleum Tanker Drivers wishes to categorically deny the allegation of Ifeanyi Ubah or any other individual, inciting the tanker drivers to cause any economic sabotage.  The allegation is baseless, unfounded and totally untrue.

    ‘’Our responsibility as a trade union is solely to promote, project and protect the job security and welfare of workers, most especially the petroleum tanker drivers in Nigeria.

    ‘’We have no further relationship with any capitalist/ employer beyond the precinct of promoting, projecting and protecting the security of jobs and welfare of our members.’’

    The union further restated its commitment to the war against corruption by the federal government and its determination to sustain what it called “a good brand of integrity and excellent service to the nation”.

    ‘’We unequivocally support the ongoing war against corruption by the current government and any capitalist/employer found culpable of stealing, diversion or embezzlement of government funds should be appropriately dealt with in accordance with the law.

    ‘’The PTDs’ branch of NUPENG has over the years built a good brand of integrity and excellent service to the nation and we will not allow anyone or institution, no matter how highly placed to bring this beautiful brand our forebears toiled to build into disrepute.’’

  • IBB varsity begins research on smokeless fuel

    Ibrahim Badamasi Babangida University (IBBU) in Lapai, Niger State, has begun research on how to produce smokeless fuel from coal. Nuhu Obaje, a professor in the Department of Geology and Mining, is supervising the research.

    Obaje said the university has released funds to bankroll the research, which seeks to use coal to generate eco-friendly fuel and electricity.

    He said the research would be completed within two years and would involve support from students. Obaje said the findings of the research would boost electricity generation and energy availability in the country.

    With 80 per cent of the nation’s power generation coming from hydro sources, Obaje explained that the project was pertinent to explore other sources that would have eco-friendly benefits.

    He said: “Smokeless fuel does not produce visible smoke when it burns. It is produced by heating coal to a certain temperature in the absence of oxygen. However, only specific physio -chemical parameters are suitable for the production of smokeless fuel.”

    The don also revealed that the proposed research work would involve the geological mapping of surface exposures and log drilled cores of coal deposits in different parts of the country, including places, such as Makara and Kudu in Niger State, Okaba, Ogboyaga and Omelehu in Kogi State; Lafia Obi in Nassarawa State, and Owukpa in Benue state.

    According to him, the outcome of the study is expected to change the condition of power supply and reduce the use of kerosene, gas cookers and firewood.

  • Marketers stop fuel supply to Ekiti

    Independent Petroleum Marketers Association of Nigeria (IPMAN), at the weekend,  stopped supply of fuel to Ekiti State.

    They are protesting the demolition of four filling stations under construction in Ado-Ekiti by Governor Ayo Fayose.

    The demolition, they claimed, “was done in bad faith and malice”.

    The governor, who revoked their Certificates of Occupancy, said he would not allow construction of filling stations in “unauthorised places”, such as residential areas and ordered  marketers to apply for recertification.

    The situation has inflicted hardship on motorists, motorcyclists and commuters as residents travel to neighbouring states to buy fuel.

    Black marketers are cashing in on the situation to make brisk business.

    Only the Nigerian National Petroleum Corporation (NNPC) filling station at Ajebamidele was dispensing fuel yesterday.

    It was besieged by motorists who formed a long queue.

    Others who could not withstand the rigours travelled as far as Iju, Itaogbolu and Akure in Ondo State to buy the commodity.

    A senior IPMAN executive said yesterday that members had received an order from the Abuja headquarters to stop supply of fuel to Ekiti.

    He said petrol marketers were  demonised by the governor, who called them thieves and other unprintable names on a live radio and television programme.

    “Withdrawal of their services was one of the ways to send a strong message.”

    The source said: “Yes, this order came from Abuja and it is above oil dealers in Ekiti State.

    “Our people in Abuja were not happy with how the members are being threatened in Ekiti.

    “No tanker can enter the state. But there is an instruction that we can  sell the one we have in our underground tanks after which the directive will take effect.”

  • Fuel scarcity looms in Southwest

    The Southwest branch of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to withdraw services, following the introduction of Bulk Purchase Agreement (BPA) fee by the Nigerian National Petroleum Corporation (NNPC).

    If the marketers make good their threat, it will spark another round of petrol scarcity in the region.

    The association yesterday lamented the introduction of BPA, noting that petroleum marketers were usually exempted from payment of such fees.

    It warned that the introduction of a five-year BPA fee by NNPC may set it on a collision course with its members.

    The Chairman, IPMAN Ibadan Depot, Raheem Tayo, confirmed the development to The Nation, adding that the NNPC’s decision was unacceptable.

    He said: “How can our members be subjected to the payment of N125,000 annually for BPA fee, when we load petroleum products from private depots that charge far above the recommended retail price fixed by the government.”

    According to Tayo, NNPC’s request that the BPA fee be paid five years upfront, amounting to N625,000 per marketer may turn out to be the last straw that will break the camel’s back.

  • IPMAN: fuel scarcity imminent

    IPMAN: fuel scarcity imminent

    • NNPC: we are not aware

    The Petroleum Marketers Association of Nigeria (IPMAN) yesterday raised the alarm that petrol may soon be scarce as private depot owners are now selling the product above pump price.

    Its Vice National President, Alhaji Abubakar Maigandi, who disclosed this to The Nation on phone yesterday, added that owing to the prevailing situation in the depots nationwide, marketers in far areas may increase their pump prices.

    He said: “Our members have started complaining about the issue of this price increase by private depots owners. They are increasing the price now seriously which will not allow our marketers to sell the product at the government rate.

    “They are selling at between N140 and N143 from the private depots.  And if the NNPC (Nigerian National Petroleum Corporation) and DPR (Department of Petroleum Resources) do not take drastic measure against it, it may likely cause scarcity nationwide.

    “Since the private depots are not selling at the DPR’s dictate, these private depots are selling above the government rate that we are supposed to pay. They are supposed to give us this product at the rate of N133.28. This is giving us serious problem nationwide now.

    “The normal rate at which the marketers are supposed to sell this product is at the rate of N145 and we are supposed to get this product at the rate of N133.28 and we are not getting it like that.

    “This is a serious problem as the marketers cannot sell above government rate and if the marketers cannot sell the product automatically, there will be scarcity.

    “The other marketers who are in remote areas may start to push up their price because there is no way you can do the business without gain.”

    According to him, it is not an excuse for the depot owners to claim that they sell above petrol pump price due to scarcity of foreign exchange.

    He added that the  NNPC is now the sole importer of the product so marketers cannot blame their hike on scarcity of forex.

    This, manipulation, said Maigandi, is known to the DPR.

    “DPR and NNPC are all aware. You can confirm from them why the private depots are selling above the government rate. And nobody is importing the product other than NNPC. So they have no excuse to say that it is because of the forex. It is NNPC that is solely bringing  this product. So for them to say they are selling above official price because of forex is not true,” he said.

    Reacting, the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu said the corporation was unaware  that private depot owners had increased  their pump prices.

    According to him, the NNPC as a player in the industry like other marketers, and has always stayed within the band of the Petroleum Products Pricing Regulatory Agency (PPPRA).

  • Fed Govt inaugurates committee for fuel supply

    The  Federal Government has set up a committee to provide a framework for the importation and supply of petroleum products, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Okoronkwo, has said.

    He said the committee comprised officials of the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC) and its depots, privately-owned depots, Major Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and relevant stakeholders.

    He told The Nation, that  the committee was to  provide modalities for fuel distribution nationwide.

    Others are: ensuring that marketers comply with the fuel pump price of N145 per litre, obedience to the laws guiding the importation of fuel, and hoarding of fuel, among others.

    According to him, the government is aware of the problems any attempt to increase the price of fuel will cause, and decided to step in to nip them in the bud.

    Okoronkwo said: “The government is keenly interested in ensuring uninterrupted supply of fuel in the country. This is the reason behind the decision of the government to set up a committee that would oversee the supply of fuel in the country. As things are, the government wants to keep to the rules guiding the supply of fuel, and also expected stakeholders including the marketers to do the same thing.”

    On the Direct Sale and Direct Purchase (DSDP) import model, Okoronkwo said the government did not make reference to the model, while setting up the committee.

    “The government did not state categorically whether the committee will be involved in the DSDP import model introduced to enable crude oil refiners abroad process the country’s crude oil into petrol and other petroleum products and further bring them to Nigeria. We are watching the events as they unfold by the government. Let us wait and see, whether there will be alternative to the model or not,” he added.

    He said IPMAN was ready to support any policy capable of improving the supply of fuel nationwide.

    The IPMAN chief said marketers were in between the government and the masses on issues relating to fuel importation and supply and had no reason other than to comply with the directives of the government on such matters.

  • Govt woos foreign investors under fuel import model

    To boost fuel supply, the Federal Government is wooing foreigners to invest in its refineries under the Direct Sale and Direct Purchase (DSDP) Import model.

    The Nigerian National Petroleum Corporation (NNPC) introduced the DSDP in its dertermination to ensure uninterupted fuel supply.

    Under the arrangement, it will allocate crude tos elcet foreign refineries in exchange for fuel.

    In the past, the government adopted the conventional crude for products (known as swap), to bring fuel into the country. Under it, notable world oil marketing firms, such as Transfigura, and Vitol, were given crude in exchange for fuel.

    NNPC’s spokesman Ndu Ughamadu, told The Nation on phone that bringing in foreign  firms was in tandem with the government’s policy to grow the economy.

    Ughamadu said: “If, in the long run, crude oil refiners from developed economies, which would operate under the Direct Sale and Direct Purchase import model, wish to invest in Nigeria, they are welcomed. The more investors invest in refineries in Nigeria, the better for the country.”

    He said the government had been calling for more local and foreign investments, to promote growth.

    “Earlier, the Minister of State for Petroleum Resources, Dr Emmanuel Kachikwu, travelled to India to invite investors into the country to encourage the growth of the sector and the economy. The Direct Sale and Direct Purchase import is in the right direction as it is capable of improving the growth of the industry,” he added.

    He said besides Transfigura, there were other firms refining crude oil for Nigeria.

    International Institute of Energy and Law Vice President, Prof Wunmi Iledare, said the Direct Sale and Direct Purchase import model is a temporary measure to ease fuel supply.

    He said the government’s ultimate goal was to bring in foreign investors that would invest in the refineries. He said the long-term plan, which the government has for the sector, was to bring in foreign investors to invest in refineries.

    The government, Iledare said, was not ready to tamper with the plans in view of the strategic importance of the sector to the economy.

    Iledare said: “For me, the DSDP model will be a temporary initiative when one considers the fact that the Federal Government has been looking for ways to end the lingering fuel crisis and related problems with products supply and distribution. The model is a stop-gap measure introduced by NNPC to address the problems in the downstream sub-sector of the petroleum industry.”

    Iledare, also President, International Association of Energy Economist (IAEE), said DSDP import model was better than swapping because it would pave way for more refineries to emerge.

    He said the government could bring foreign investors, since it was unable to fix its own refineries, adding that Nigeria has no reason to import fuel being one of the largest energy entrepreneurs in the continent.

  • Fuel scarcity disrupts Arik Air’s flights

    Fuel scarcity disrupts Arik Air’s flights

    Arik Air flights were yesterday grounded at the Lagos Airport over its inability to secure aviation aviation, it was learnt.

    According to a source close to the Nigerian Civil Aviation Authority (NCAA), the inability of carrier to air lift passengers out of the Murtala Muhammed Airport Airport, Ikeja, Lagos was borne out of its inability to get aviation fuel at the Lagos Airport.

    Tne NCAA source did not give details.

    Another source hinted that the Airport Police Command has deployed a detachment of officers and men to the international wing of the airport to maintain peace and order over a possible backlash by passengers trapped in the flight disruptions.

    “I learnt that Arik Air has not operated any flight today on account of lack of aviation fuel. However, other flights by other airlines operated flights in and out of the Lagos Airport,” the source said.

    Meanwhile, scores of passengers remain stranded at the airport.

    The airline is yet to officially comment on the issue.

    Many of Arik Air passengers on the international routes created scene at the international wing of the Murtala Muhammed Airport yesterday over flight delays.

    Trouble started when the airline’s passengers particularly those billed to travel on the airline to the Lagos/Johannesburg and Lagos/JFK, New York routes waited for hours without being called for boarding.

    After waiting for hours without any hope of making the flights and without enough communications from the airline ticketing staff, the situation which had already become tensed resulted to open confrontation between the aggrieved passengers and some officials of the airline.

  • Why aviation fuel is scarce, by NNPC

    Why aviation fuel is scarce, by NNPC

    • ‘Airlines can’t pay’

    The scarcity of Aviation Turbine Kerosene  (ATK) has more to do with the inability of airlines to pay for the product than its alleged scacity, the Nigerian National Petroleum Corporation (NNPC) has said.

    The Corporation said the introduction of the cash-and-carry policy by marketers as a  result of the huge debts  being owed by the airlines, was the main cause of the scarcity.

    NNPC’s Group Managing Director, Dr Maikanti Baru, who spoke when the management of the Nigerian Television Authority (NTA), visited the corportaion, said NNPC has taken steps to ensure adequate supply of the product with the importation of over 45 million litres.

    He said the monetisation of natural gas was a cardinal mandate of the Corporation, and expressed its commitment to carry on with the Brass LNG and OK LNG, saying the two projects were high priority gas entities which promise to boost revenue to the Federal Government.

    NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, in a statement quoted Baru as saying: “We are still committed, to monetising our natural gas. We have the Nigerian Liquefied Natural Gas (NLNG) which is at the moment monetising about four billion standard cubic feet of gas on a daily basis (4 billion scf/d). We also have plans for Olokola LNG as well as Brass LNG.

    “We have a little challenge with market windows for these projects which we are reviewing on a monthly basis. Once the appropriate market window opens up, we will quickly get more shareholders to join us for the projects.”

    He said a meeting of Brass LNG stakeholders has been scheduled for early next year to chart the way forward for the project, adding that apart from the LNG projects, NNPC was also working on gas monetisation through aggressive enhancement of domestic gas supply for power generation and industrial use.

    Baru praised the management of NTA for its factual reportage of the corporation’s activities.

    He urged the state-run television station to help in enlighten the public on the dangers of pipeline vandalism, which long-term impact on the environment far outweighs whatever short-term gain the perpetrators may be seeking.

    Speaking earlierThe NTA Director-General, Malam Yakubu Ibn Mohammed, said the visit was in continuation of the Authority’s resolve to liaise constantly with other government agencies it collaborates with regularly and with which they share the objective of furthering the interest of the country.

    “The NNPC and NTA have come a long way. Our relationship has continued to wax stronger and stronger and it is my desire to ensure that during my stint as DG of NTA, we take this relationship to a greater height,” he said.