The Nation Newspaper

Tag: IPMAN

  • IPMAN seeks govt’s intervention in kerosene, diesel supply

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to intervene in the downstream sector of the petroleum industry to ensure adequate supply of Dual Purpose Kerosene (DPK) popularly called kerosene and Automotive Gas Oil (AGO) commonly called diesel, to avert scarcity.

    IPMAN’s Chairman, Mosimi depot, Comrade Dele Tajudeen, made the request during a meeting of the association at Mosimi, Sagamu, Ogun State.

    He told reporters that while premium motor spirit (PMS) – petrol – is available at the depot and is distributed to the members’ filling stations, kerosene and diesel don’t get to the depots.

    He said the absence of storage facilities for kerosene at Atlas Cove makes it impossible for the product to be transported to Mosimi depot for distribution.

    Tajudeen also said the association was not opposed to deregulation of petroleum product but before then, the Petroleum Industry Bill (PIB) must be passed to ensure a  level playing ground for  stakeholders.

    Tajudeen, while reacting to the allegation of misappropriated N500 million by IPMAN, said the allegation was baseless. “The association did not make N500million in turnover and there is no way it could have been misappropriated. Although they did not have legal standing to have access to our account, where did they get such figures? We will sue them for libel if they cannot substantiate their claims with evidence.”

    A faction of IPMAN led by Adeleke Dada alleged that the Dele Tajudeen-led faction misappropriated N500 million belonging to the IPMAN.

    Dada said: “They misappropriated about N500million during their tenure because  they made about N10 million per month from all of the unnecessary levies, which were illegal collections, and which were not accounted for.

    “During the period of fuel scarcity, the government did not increase the price of petroleum, it was their administration that increased the price in their own capacity to the rate of N110 per litre, which is very wrong, the government didn’t tell them to increase it.

    “We had enough of the product in Mosimi depot, so, whenever there is scarcity, they used that opportunity to hike fuel price so as to enrich their pockets, which was not good on the masses. We are going to call on the Economic Financial Crimes Commission (EFCC) to probe them because they embezzled the unnecessary levies that were paid to them.”

    However, Tajudeen said the meeting was to sensitise the members on the forthcoming election scheduled to hold on October 15, having been elected into office in 2010.

    He said all parties are invited to participate in the election to move the association forward.

  • IPMAN urges govt on road

    The Ogun State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) urged yesterday the Federal Government to hasten the completion of the Ikorodu-Mosinmi-Sagamu Road, to ease transportation of petroleum products from its Mosinmi depot.

    The chairman, Alhaji Dele Tajudeen, who spoke with The Nation at Mosinmi in Ogun State, said he was disappointed the way the contractor handled the project.

  • Hope from IPMAN

    Hope from IPMAN

    •Private concerns, rather than the Federal Government, seem to take the initiative on refineries

    Will we soon be seeing a ray of light and hope at the end of the dark tunnel of Nigeria’s grossly inefficient oil and gas sector characterised by import dependency and massive corruption? If the proposed plan by the Independent Petroleum Marketers Association of Nigeria (IPMAN) to build two ultra-modern refineries in Bayelsa and Kogi states comes to fruition, this may well be so and there is the strong possibility of our getting out of the woods in this beleaguered sector that has become a burden on the economy.

    According to Elder Chinedu Okoronkwo, IPMAN’s National President, the proposed project is a venture with foreign investors who will inject $3 billion into the economy to achieve the objective. Of course, the benefits of increased domestic refining capacity through functional local refineries are obvious. These include availability of petroleum products to IPMAN members, reduced scarcity of petroleum products, enhanced job creation, reduction in capital flight and the attendant growth in the country’s Gross Domestic Product (GDP).

    This is graphically portrayed by Elder Okoronkwo when he said that “Where Nigerians are spending $60 million in exporting crude oil and bringing in refined products, the proposed refinery will reduce the cost and stress of exporting crude to bring in the refined products”.

    It is regrettable that despite the billions of Naira spent on the Turn Around Maintenance (TAM) of the country’s three existing refineries, they continue to operate abysmally below installed capacity. The consequence is that the Nigerian National Petroleum Corporation (NNPC) receives 445,000 barrels of crude oil per day but refines only a fraction locally. Thus, the NNPC engages in a swap deal which involves its selling unrefined crude and importing refined petroleum products. This has provided an avenue for massive corruption to the detriment of the economy through the purported fuel subsidy attendant on importation of petroleum products.

    A probe by the House of Representatives into purported fuel subsidy payments between 2010 and 2012 revealed that the country had been defrauded to the tune of $6 billion. Fifteen fuel importers were discovered to have collected more than $300 million within the period without importing any fuel. Others dubiously collected double payments on several occasions. Similarly, about N700 million is allegedly being spent daily on illegal kerosene subsidies while kerosene is generally sold at N150 per litre across the country.

    Regrettably, the government has made no move to either issue a white paper on or implement the recommendations of the Dr Kalu Idika Kalu National Refineries Special Task Force Committee, which was set up following the 2012 fuel subsidy removal crisis. The committee had proposed an offshore refining scheme as an interim measure to bridge the gap between the current production level of NNPC and the balance refined abroad. It also recommended changes in the current ownership structure and business model of the existing refineries in order to turn them around, with the aim of privatising them within 18 months and ultimately achieving full deregulation of the oil and gas sector after necessary palliatives had been put in place.

    For some inexplicable reason, the three Green field refineries planned by the NNPC Greenfield Projects Division Group since 2005 remain unrealised while no progress has been made as regards the 18 licences issued by government for private refineries since 2002. That is why it is in the national interest that the initiatives by IPMAN and the $9 billion refinery and petrochemical complex being planned by the Dangote Group should be given every encouragement to succeed. It is also of utmost importance that the long and unjustifiably delayed Petroleum Industry Bill (PIB) be urgently passed into law to sanitise the oil and gas sector and encourage the much needed private investment to maximise its potentials.

  • IPMAN to build refineries in Bayelsa, Kogi

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) is to  build two ultra-modern refineries  in Bayelsa and Kogi states for about $3 billion to increase the volume of refined products internally.

    Its National President, Elder Chinedu Okoronkwo, said in Lagos that the ground-breaking  would be performed before the end of this year, adding that the  project will be carried out in collaboration with foreign investors.

    He said: “We are proposing to build two refineries in Nigeria – one in Bayelsa and Kogi states  to eliminate fuel scarcity, which is part of the agenda of the present administration. We are in discussion with our foreign investors. The discussion is ongoing and we are reaching agreement, which hopefully will be sealed before the end of July, while the ground-breaking is expected to take place in the fourth quarter of the year.

    “When the proposed refineries come on stream, they will go a long way in ensuring availability of petroleum products to IPMAN members, and ease scarcity in the country. We will ensure that the products get to all nooks and crannies of the country. Besides, the two refineries will help grow the gross domestic product (GDP) of the country because the capital flight on importation of products will reduce drastically,” he said.

    He explained that what the country spends in exporting its crude overseas for refining and the associated cost of importing the refined product, would be drastically reduced when both refineries come on stream. Expectedly, he said the refineries will also create jobs, where lots of Nigerian youths will be gainfully employed, and this will also reduce incessant kidnapping in the country.

    Okoronkwo said the association is also working with the  Nigerian National Petroleum Corporation (NNPC),  Petroleum Products Pricing Regulatory Agency (PPPRA) and Products and Pipeline Marketing Company PPMC) to ensure products availability.

    He said  contrary to rumours, the association’s account was not frozen. “We are ready to commence the project and we hope to make it work because we are also involving our money. We are going on with our legitimate work and no account of the association was frozen.”

    He commended the efforts of the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke and the Managing Director of PPMC, Prince Haruna Momoh, for their commitments to ensuring effective distribution of petroleum products to all the depots across the country.

    He said the commercial arm of IPMAN, NIPCO, is doing well, but that it would do better when the proposed refineries come on stream because it will ensure steady product availability.

    He enjoined Nigerians to move beyond the use of kerosene and switch over to gas so that the gas that is being flared could be harnessed and used. Kerosene should be used for aviation and other purposes. That is what we are doing right now, he said.

    He added: “We want to enlighten Nigerians on the benefits of using gas. Government should also ensure passage of the Petroleum Industry Bill (PIB) to attract investors to open up the industry.”

  • Ekweremadu pledges accelerated passage of PIB

    The Deputy President of the Senate, Ike Ekweremadu, on Monday promised the National Assembly would expedite action on the Petroleum Industry Bill (PIB).

    Ekweremadu spoke when he received a delegation of the newly elected National Executive Council of the Independent Petroleum Marketers Association of Nigeria (IPMAN), in Abuja.

    He said the Senate was mindful of the benefits of the PIB to Nigerians and those in the petroleum sector and would work to enthrone the envisaged major reforms intended by the bill.

    Uche Anichukwu, his special adviser on media, quoted the Deputy Senate President to have said: “I would like to use this opportunity to assure you that progress is being made regarding the Petroleum Industry Bill.

    “We are committed to passing the Petroleum Industry Bill because we believe that it is going to bring major reforms in the industry. We want to solicit your patience and also your support towards it.

    “We are hoping that very shortly our Committee will bring forth the report of the bill and we are going to give it an accelerated hearing so that Nigerians and those who are in the industry will begin to have the benefits of reforms intended by this bill.”

    He urged IPMAN to ensure steady supply of petroleum products to Nigerians given the enormous dependence of businesses on the downstream sector of the petroleum industry.

     

  • Oyo fuel price hike: ‘Faulty generators at Mosinmi responsible’

    Oyo fuel price hike: ‘Faulty generators at Mosinmi responsible’

    Faulty generators at the pumping station in Mosinmi depot, Ogun State have been disclosed to be responsible for the increase in the price of Premium Motor Spirit, otherwise called petroleum, in Oyo State, as many independent filling stations sell above the official pump of N97 per litre.

    The Chairman, Independent Petroleum Markerters’ Association of Nigeria (IPMAN), Ibadan depot branch, Basorun Joseph Oyewole Akanni, disclosed this yesterday in Ibadan.

    He said that the negative effect of vandalism on the pipelines, as well as high landing cost of the product being sourced from private depots in Lagos, were part of the challenges.

    In a statement signed by Akanni, made available to reporters in Ibadan, IPMAN adduced reasons its members selling above the official price in the past three months, promising to reverse to the old rate immediately the identified problem areas were rectified.

    The statement reads:”The Chairman of Independent Petroleum Markerters’ Association of Nigeria, Ibadan depot wishes to clear the air on the reasons why our members are selling petrol (PMS) above the government approved rate.

    “For almost three months now, there was no lifting of any product from the Ibadan depot due to the activities of vandals on the pipeline; the generators at the pumping station are faulty and need to be  repaired and the landing cost of product (PMS) sourced from private depots in Lagos is above N100 per litre in  Ibadan. Outlets outside Ibadan incurred additional cost of transportation”.

  • IPMAN: Court restrains faction

    An Abuja High Court has granted an interim injunction restraining Obasi Lawson and his group from “interfering with or disrupting the operations, activities and affairs” of the Chinedu Okoronkwo-led executive of the Independent Petroleum Marketers Association of Nigeria (IPMAN).

    The other applicants are: Abubakar Shettima, Danladi Passali, Bola Adeleke, Leo Nkameme, Yakubu Dimka and JD Ubini, Hammed Fashola, Umar Kano, Ezekwesili Maduagwuna and Yakubu Suleiman.

    Lawson has described  Okoronkwo’s election as illegitimate.

    The court order also restrains Lawson –whether by himself, agents, servants, officers and privies from conducting, organising, supervising or carrying out any election of the National executives/officials of IPMAN, pending the hearing and determination of the Motion on Notice, which is fixed for June 2.

    Lawson and the other defendants are also restrained from gaining access to or entering the premises known and located at 41 Gnasimbge Eyadema Street, Asokoro District, Abuja, “same being the National Secretariat of IPMAN.”

  • Task force on petroleum monitoring

    Task force on petroleum monitoring

    The Akwa Ibom State government announced yesterday the setting up of a petroleum monitoring task force.

    The task force will be headed by Obong Essien Esema with members drawn from security agencies; labour; Independent Petroleum Marketers Association of Nigeria (IPMAN); and the Ministry of Environment and Mineral Resources.

    In the last three months, petrol has been sold between N120 and N150 per litre.

    Apart from the Nigeria National Petroleum Corporation (NNPC) Mega Filling Stations, Oando, Total and Mobil selling at N97 per litre, other independent marketers are dispensing petroleum products between N120 and N150.

    The spokesman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Eastern Zone, Sir Victor Etefia, said 95 per cent of the petroleum products sold in Akwa Ibom are sourced from secondary markets.

    “This is why you have  price differences since there are two major sources of petroleum products, primary and secondary sources.

    “The secondary source is a private tank farm, while the primary source is the NNPC depot. When the NNPC depot has no capacity to supply, you have no other option other than to go to the secondary source.”

     

  • NUPENG withdraws services from depots

    The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) Monday night announced that it has withdrawn its services from the Warri and Calabar depots.

    The President of the union, Comrade Igwe Achise, said the decision was a reaction to the action of the Independent Petroleum Marketers Association of Nigeria (IPMAN) which shut down the Warri depot Monday.

    There has been an internal crisis in IPMAN which resulted in the emergence of two different factions of the association with one electing Elder Chinedu Okoronkwo as its president against the court order that pronounced Comrade Lawson Obasi the association president.

    The State Security Service, Pipeline Product Marketing Company, and other agencies had intervened to address the crisis to no avail.

    But speaking to journalists after the union’s meeting at Abuja, Achise pointed out that NUPENG is not on strike, although it has withdrawn its services from the Nigerian Independent Petroleum Company (NIPCO) which is owned by IPMAN.

    He said: “Today, our members are being lock outside the Warri Depot. Those who are working are working under the rain. Their office is being taken over. We are also appealing for those offices to be opened for workers to go in and continue their administrative work and not to be working under the rain. “Consequently, we are also saying we are withdrawing services from the Warri Depot and the Calabar Depot.”

    IPMAN, according to Achise, has dragged NUPENG to the National Industrial Court (NIC) that would commence sitting on the matter on Tuesday.

    He said NUPENG has withdrawn its service from IPMAN pending the determination of the case in court.

     

  • IPMAN president seeks constant supply of products

    The newly elected president of the  Independent Petroleum Marketers Association of Nigeria (IPMAN), Elder Chinedu Okoronkwo has urged the members to work, as a team to ensure regular supply of fuel at the filling stations.

    He said he would engage all aggrieved members in a dialogue to bring sanity to the downstream petroleum sector.

    Okoronkwo, who spoke after the election of the new executives in Abuja, said under his leadership, IPMAN will improve members’ capacity for product delivery, and as well build on the achievements of his predecessors, urging members to freely relate with him to register their complaints about any misgiving.

    He said the days when the body was ridden with crisis are over, especially now that members are concerned  about ensuring free flow of petroleum products such as kerosene from depots.

    He said with the cooperation of members, the association would ensure that IPMAN’s stations are always wet with products, pledging that he will partner with the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, the Group Managing Director of the Nigerian National Petroleum Resources Andrew Yakubu and  Chief Executive of the Pipeline Products Marketing Company, Prince Haruna Momoh and other officials to deliver products to the door steps of end-users.

    Other elected national officials are: Alhaji Abubakar Maigandi Shettima, as Deputy President, Alhaji Danladi Pasali National Secretary, Mr Bola Adeleke National Treasurer, Alhaji Hammed Fashola, Assistant Secretary and Dr. Leo Nkameme National Organising Secretary.

    Others are:  Alhaji Yakubu Dimka National Auditor, Alhaji Umar Baba Kano National Legal Adviser, Chief Ezekwesili Madogana Chief Whip,  Alhaji Yakubu Sulaiman National PRO and Chief Joseph Obini as Financial Secretary.

    The elections which took place at the Command Guest House, Abuja, witnessed high turnout of IPMAN members from the 36 states,  including the Federal Capital Territory.