The Nation Newspaper

Tag: kerosene

  • IPMAN:’corruption drove kerosene price up’

    Oil marketers yesterday blamed high level corruption for the high cost of domestic cooking fuel, kerosene, across the country.

    The marketers, acting under the aegis of Independent Petroleum Marketers Association of Nigeria (IPMAN), said since the product still enjoined subsidy, its scarcity as a result of corruption inevitably drove its price beyond the reach of the masses for whom the subsidy was meant to assist by the Federal Government.

    Its National Vice President, Alhaji Abubakar Dankigari who spoke in Abuja advised the government to deregulate its sale completely to curb corrupt practices.

    He lamented that the Petroleum Products Pricing Regulatory Agency (PPPRA) pegged kerosene price at N135 per litre but since marketers could not get it directly at the price unless they cut-corners, they end up getting it at between N160 and N170 per litre. He said this explained why kerosene now sells for over N180 per litre.

    He said: “The government should (totally) deregulate kerosene (sale) because there is still some element of corruption in its sale. It should be deregulated because of the difficulties in accessing it.

    “The masses are not enjoying the subsidy and we marketers are not enjoying it because even when you go to any government depot to load kerosene now, you cannot load it at the government stipulated price until you bribe your way. The government’s price is N135 but you cannot get it. You can only come to town and get it for N160 and N170. That is why you see marketers selling it at N180 per liter.”

    Dankigari said IPMAN was yet to to start the building of its proposed modular refineries because the Federal Government was yet to deregulate the price of the finished products (kerosene and petrol).

    According to him, had government deregulated the prices of petrol and kerosene, IPMAN would have approached its foreign partners to invest in the projects.

    He said building modular refineries is a gigantic project that an individual could hardly undertake without the involvement of foreign investors.

    He said: “Petrol and kerosene are not completely deregulated and a project like this, an individual cannot sponsor it. We will have to bring in foreign investors. Our foreign investors are ready to bring the money so that we can continue the business. But the downstream sector must be fully deregulated for this to happen.”

    Dankigari lamented that his members cannot import products because of the devaluation of the naira which affected access to foreign exchange.

  • IPMAN’s 50,000 mt of kerosene arrives

    IPMAN’s 50,000 mt of kerosene arrives

    The ship carrying  50,000 metric tons of Dual Purpose Kerosene (DPK) which the Independent Petroleum Marketers Association Nigeria (IPMAN) imported is billed to arrive Lagos today.

    Its National Secretary, Malam  Danladi Pasali, in phone interview, noted that the association has been tracking the ship which coming from Russia.

    According to him, the cargo had some issues on its way but it will eventually arrive Lagos on today before the association will unfold it pump price and distribution plans for the product.

    He said: “We are still in Lagos. The cargo had some issues but it is coming in on Tuesday (today). We have been tracking it.”

    The Nation had exclusively reported that IPMAN received a bill of landing for the arrival of  50,000 metric tons of kerosene via Lagos.

    It was learnt that key members of the association were already in Lagos as at September 8  in preparation for the product that is due for arrival in 10 days time.

    Pasali said the association has planned to crash the current pump price of kerosene as it is prepared to sell below the Petroleum Products Pricing Regulatory Agency (PPPRA) price.

    “We are in Lagos expecting our bill of landing for 50,000metric tons of kerosene . We are in Lagos now. We have received the bill of landing. We are expecting it in the next 10 days. That is what the bill of landing is reading.  The arrangement is that we are going to crash the price. Our price will go below NNPC price,” he said.

    He noted that following the economic recession which has weakened the purchasing power of the consumers, the demand for Premium Motor Spirit (PMS) has reduced.

    Pasali however added that members of his association were already selling petrol below the N145 pump price.

    “The truth is that because of the current recession which is affecting everybody, the sale is not like before. The purchasing power of people has reduced.

    “But the good thing is that our members are selling below government price of N145. Independent marketing filling stations are now selling at N140, N141. That is just the good news,” he said.

    Pasali said petrol is also easily accessible  even in the Southeast owing to the operation of the Port Harcourt Refinery and availability  of products in Calabar and Ogara depots.

  • Ibadan firm produces diesel, kerosene from plastics

    AN Ibadan, Oyo State-based firm, Education Advancement Centre (EAC), has rsome chemical products made from waste plastics and cans.

    The products include diesel, kerosene and alum, made from waste plastic and cans, instead of crude oil.

    The firm launched the products at an exhibition at its Bodija, Ibadan headquarters, as one of the activities marking its 20th anniversary.

    The products, which come at a cheaper cost, according to the firm’s director, Mr. Muyiwa Bamgbose, will also reduce environmental destruction through use of non-degradable materials as raw materials.

    He said rather than relying on oil, which is quite expensive, the waste materials, which are available in huge quantity, were far cheaper.

    For instance, he said a litre of its kerosene and diesel costs N120, instead of the average of N200 nationwide.

    But EAC is not willing to go into large-scale production.

    Rather, the firm is looking for investors or manufacturers that can produce at that level to meet the needs of Nigerians.

    Bamgbose said: “For the diesel and kerosene, we call them green products. They are made from waste thermosetting plastics, which do not have any recycle value. The non-thermosetting plastics can be recycled but thermosetting are useless.

    “Right now, it is at a pilot scale. We can produce about 500 litres of kerosene and diesel per day. We are able to produce a trailer load of alum in two days. We will begin to offer the products in the next few days.

    “We have approached the Standard Organisation of Nigeria (SON) for quality control and standardisation, and they are happy to visit our factory.

    “But we are not interested in producing in large scale. We are looking for factories or investors that will do that.”

  • Judge releases firm’s diesel, kerosene

    The Federal High Court in Lagos has granted leave to an oil marketing company, Chukelad Nigeria Limited, to evacuate its 2,804,735 litres of Automotive Gas Oil (AGO) and 1,927,727 litres of Dual Purpose Kerosene (DPK) stored in a tank farm belonging to an oil firm, Zone 4 Energy Limited.

    The tank farm, which is under a receiver appointed by FirstBank of Nigeria Limited, is within the Calabar Free Trade Zone (CFTZ).

    Justice Abudulazeez Anka held that the products should be evacuated with immediate effect. He ruled on an application by Zone 4 Energy’s lawyer, Mr Lanre Ogunlesi (SAN).

    Another judge of the court, Justice Saliu Saidu, had on July 1, empowered the bank’s receiver to take over the entire assets of Zone 4 Energy at the CFTZ over an alleged debt owed the bank.

    But, in a supporting affidavit, Zone 4 Energy said it had a prior agreement with Chukelad Nigeria to use the tank farm to store its AGO and DPK, before Justice Saidu made the order.

    Zone 4 Energy said Chukelad Nigeria paid it N7 million to use the tank farm, adding that the bank’s receiver took over the assets while Chukelad Nigeria was loading its trucks at the depot.

    The applicant said it had “substantial quantity” of Chukelad Nigeria’s products in its storage when the bank’s receiver took over the tank farm.

    “In view of the fact that this matter in court might take time to resolve, it would be in the interest of justice to grant this application.

    “The products are susceptible to market forces and if the prices drop, it would be a colossal loss to Chukelad Nigeria and we would be held liable,” Zone 4 Energy prayed.

    The receiver, Mr Emmanuel Oyebanji, who is also First Bank’s lawyer, had opposed the application, contending that both the tank farm and the products stored in it were among the “charged assets” under receivership.

    Justice Abdulazeez Anka held that the application had merit and was properly before the court.

    “The application succeeds and the objection is accordingly overruled. The products lying in the tank farm is accordingly ordered to be evacuated in the presence of the registrar monitoring same with immediate effect,” the judge held.

  • Fed Govt moves to flood market with kerosene

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday said the Federal Government has placed an order for the importation of the Dual Purpose Kerosene (DPK) or kerosene.

    Its chairman, Board of Trustees (BoT), Alhaji Sharif Abubakar Usman who spoke in Abuja during the inauguration of the Eastern Zonal Executive, said the cooking fuel will be available to every nooks and crannies of the country.

    Meanwhile, Okronkwo has assured that the price of petrol will crash soon as the Central Bank of Nigeria (CBN) increased access of importers to foreign exchange (forex).

    He said: “Very soon, the products DPK and AGO (automotive gas oil) will be in circulation under the leadership of Elder Chinedu Okoronkwo . Those that are not aware they are aware now. Sooner or later but I cannot say today or tomorrow but very soon AGO will arrive. DPK will arrive this country under the leadership of Okoronkwo.

  • NUPENG seeks govt policy on kerosene

    NUPENG seeks govt policy on kerosene

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has urged the Federal Government to unveil its policy on kerosene.

    NUPENG Southwest Chairman,  Alhaji Tokunbo Korodo, who made the appeal in an interview with the The Nation in Lagos, said the product has become unaffordable.

    He said while the government deregulated diesel and petrol, there was no clear policy on kerosene. This has led to the high cost of the product – a litre sells for as high as N240 at most filling stations.

    Korodo noted that many filling stations, especially the Nigerian National Petroleum Corporation (NNPC) Mega Stations in Lagos, did not have the product, forcing the masses to buy from independent marketers

    “Kerosene has not been deregulated, according to the Federal Government policy on the product.

    “Part of the excuse given to us is  the hostility in the Niger Delta, which reduces the quantity of the products given to refineries.”

    “The increase in the price of kerosene has also triggered up price of gas which is now between N4,000 and N4,300.

    “Kerosene is the only product that is accessible to rural and urban women and government needs to explain to us why the product is more expensive than diesel and petrol now.

    “For kerosene to be sold for more than N200 at pump price is uncalled for and the government should look inward and address it urgently,’’ he said.

    The Federal Government on January 19, increased the pump price of kerosene from N50 per litre to N83 per litre.

  • Kerosene explosion kills mother of three

    A man, his wife and three children were rushed to the emergency unit of University of Port Harcourt Teaching Hospital (UPTH) after a kerosene explosion occurred in their home on Thursday night.

    Mr. Godwin Abiakwe’s wife was said to be refilling a lantern without putting it off when the explosion occurred.

    The family of five, who hail from Imo State but reside on Ada-George Road in Port Harcourt before they relocated to Eleparawa community in Obio/Akpor Local government of Rivers State, were said to have been in sound health before the tragedy occurred.

    A neighbour, Mr. Anthony Igwe, who helped in taking the victims to the hospital, said Abiakwe’s injury would have been less pronounced if he had not gone back into the fire to rescue his children after his initial escape.

    He said: “The wife was in critical condition from the moment we brought her out, maybe because she was the closest to the scene. She was refilling a lantern with kerosene without putting it off first.

    “And this time around, nobody knows the kind of kerosene marketers are selling to the public.”

    At the hospital yesterday, both the family of the victims, friends and church members were disturbed over the inability of the hospital management to allow them to see the wife after they had seen the husband and the three children who were responding to treatment.

    But an employee of the hospital and one of the family members who were allowed to see the woman told our correspondent in confidence that the woman was dead.

    He said the doctors told him not to break the news to the husband or any other family member who might not be able to keep the secret.

    The victims’ family pleaded with the Rivers State governor, Chief Nyesom Wike, and other privileged individuals to come to the aid of the victims.

  • Marketers sell kerosene at N120

    •IPMAN ‘not aware’

    Marketers are selling Household Kerosene (HHK) above the  approved price of N84.17 per litre, investigation has revealed.

    They sell the product for between N115 and N120 per litre.

    According to the Petroleum Products Pricing Regulatory Agency’s (PPPRA’s) pricing template of March 17, the expected open market price (OMP) of kerosene is N84.17 per litre.

    However, marketers, mainly independents, sell the product above N84.17 per litre. In many retail outlets in Lagos, The Nation discovered that consumers buy the product at N120 per litre.

    At some retail outlets in Ikotun, Egbeda, Idimu, Iyana-Ipaja, and Agege in Lagos, consumers stood in long queues to buy the product, described as “poor man specific”. Those who went to the Nigerian National Petroleum Corporation (NNPC) outlets to buy at cheaper price, were disappointed – the product was not available.

    Contacted, Independent Petroleum Marketers Association of Nigeria (IPMAN) National President  Mr. Chinedu Okoronkwo said  he was not aware that his members were selling kerosene above the official price.

    He said the association would deal with any ofits members who sells the product above the official price.

  • Kerosene worth N20m lost as tankers explode

    Kerosene worth N20m lost as tankers explode

    Fuel product worth N20 million was lost yesterday in Effurun, Delta State, when two petroleum tankers caught fire at Avwenayeri petrol filling station along Airport road.

    According to eyewitnesses, Kerosene was being transferred from one of the tankers, with registration number Lagos XN 321 JJJ, to another, when fire unexpectedly struck.

    Eyewitnesses suggested that the fire was ignited by the pumping machine

    Sources, however, said no life was lost during the incident.

     “It could have been worse because if it had been petrol, because it would have spread around quickly, even to adjoining buildings and cars on the busy road.”

    The owner of one of the trucks, marked in the colours of Oando, Mr Martin Okolie, told our reporter that he got a call about the incident while he was still in bed.

  • Disaster averted in Warri as tankers explode

    Disaster was averted in Effurun, Delta State on Friday when two petroleum tankers caught fire at Avwenayeri petrol filling station on Airport road.

    The Nation learnt that the fire was sparked off during the transloading of product suspected to be kerosene from a truck with registration number Lagos XN 321 JJJ to another.

    Although what sparked off the inferno was not immediately known, eyewitnesses’ accounts indicated that it was possibly sparked off from the pumping machine.

    Although no life was lost, source put the cost of the devastation at over N20million.

    “It could have been worse because if it was petrol involved it could have spread around even up to adjoining buildings and cars on the busy road.”

    The owner of one of the trucks marked in the colours of Oando, Mr Martin Okolie told our reporter that he got a call about the incident while he was still in bed.