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Tag: marketers

  • Marketers raise the alarm over lightness of petrol

    Marketers raise the alarm over lightness of petrol

    Marketers of the Premium Motor Spirit (PMS) petrol have raised the alarm over the lightness of the product in some retail outlets, noting that it is inferior to the quality the Nigerian Midstream and Upstream Regulatory Authority (NMDPRA) approved.

    They described some of the products imported to Nigeria as evaporating and undurable.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), National Vice President, Mr. John Keke Ocha, broke the news at Natural Oil and Gas Suppliers Association of Nigeria (NOGASA)  National Executive Council (NEC) in Abuja.

    According to him, lack of adequate legitimate domestic refining of petroleum has paved the way for the importation of all manners of products to meet consumer needs.

    Explaining that absence of in – country refining has led to the importation of different grades of petrol, he lamented that the consumers have no choice.

    He advised the Federal Government to look inward to ensure the national and private refineries are functional.

    Read Also: No plans to hike petrol price, says NNPCL

    His words: “The prayer of this house is that government must look inward to ensure our refineries are put to use to create room for reduction of these high petroleum products importation as we are saying today.
    “A lot of people don’t use their vehicles again. If you put N20,000 or N30,000 fuel in your car, before two days the thing is gone. I don’t know whether it is evaporating. “Sometimes, I ask myself what has happened to the N30,000 fuel that I bought yesterday. The thing (fuel gauge) has started showing red. 
    “I don’t know if the type of product we have is no more like the original product that we used to get. 
    “This is because the competition has made it convenient for importers to get very light and all kinds of product to the country. And we accommodate it because we don’t have alternative. 
    “But if we produce it in this country, we will have choice. If we produce in this country, we will select. If we produce in this country, it will make it even more competitive and cheaper. 
    “That is the prayer of this house: the government must look inward and make life easy for people by making sure refineries are put in place to function.”

    But the NMDPRA Corporate Communnications General Manager, Mr. Kimchi Apollo was not reachable on phone to state the Authority’s side of the story.

    He did not respond to the text message The Nation sent to him as of press time.

  • Govt to marketers: don’t sell fuel above approved price

    Akwa Ibom Government has warned independent petroleum marketers in the state to desist from selling products above the pump price approved by the Federal Government.

    Special Assistant to Governor Udom Emmanuel on Petroleum Matters, Mr Festus Sunday, in a statement yesterday said that any petroleum marketer caught disobeying the directive would be prosecuted.

    News Agency of Nigeria (NAN) recalls that the state   government on Monday, resolved the one week strike embarked upon by Petroleum Tanker Drivers on May 6.

    Sunday said. “Marketers, who are yet to comply with the directive to revert to the approved pump price of N145 per litre of petrol are advised in their best interest to do so or face sanctions.”

    He said that the state’s Petroleum Products Monitoring Committee (PPMC) would ensure strict compliance with the directive in the state.

    “PPMC shall not spare any defaulter caught in the act or with the intention of profiteering at the expense of the public and other unsuspecting buyers,” he said.

    He advised motorists and other consumers of petroleum products, not to patronise filling stations selling petrol above the government-approved price of N145 per litre.

    Sunday, however, said consumers of petroleum products should purchase the commodities at the nearest NNPC Mega Station and other dispensing outlets that complying with the directives from NNPC.

    He urged the public to report any deviant petrol station to the office of the SA at Plot 104, Unit A, Lagos Street, Ewet Housing Estate, Uyo for necessary action.

  • Petrol Scarcity: NSCDC warns oil marketers in Ekiti

    THE Nigerian Security and Civil Defence Corps (NSCDC) will today begin clampdown on petrol dealers hoarding or diverting products in Ekiti State.

    The NSCDC, Ekiti Command, said it would not allow those he described as unscrupulous dealers to create artificial scarcity in the state over  anticipation of a rise in official pump prices.

    Governor Kayode Fayemi  on Friday issued similar threat against some petrol dealers found to be hoarding fuel.

    This situation has forced motorists to engage in panic buying since Friday.

    The development had also caused long queues in filling stations across the state and hike in the pump price in some stations to N160 per litre.

    Speaking with reporters  in Ado-Ekiti yesterday, the command’s  Commandant, Mr. Solomon Iyamu, said he had instructed anti-vandal operatives to begin random surveillance on petrol stations and arrest those hoarding the product.

    Iyamu, who spoke through the command’s Public Relations Officer, Tolu Afolabi, added that the operation would begin by 8am today.

    “We realised that long queues and artificial scarcity had been created by some petrol dealers and we are ready to address the issue.

    “We learnt from good authorities that very high number of our petrol stations are now hoarding the product. Some are also selling above N145 pet litre. These are the issues we will tackle squarely,” he stated.

    The NSCDC boss appealed to motorists to always inform it of any wrongdoings from any filling stations to help his men and officers in carrying out the operation.

    He promised that the command would also strengthen its operation to prevent those who could divert products meant for Ekiti to another state, thereby creating scarcity in the system.

    Iyamu, however, warned petrol dealers against inflicting hardship on the people by hoarding the product, saying it is illegal and any filling station found culpable of such an activity would be sanctioned accordingly.

  • Marketers warn against imminent petrol scarcity

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday raised the alarm over the fear of a looming fuel scarcity.

    Its National Vice President, Alhaji Abubakar Maigandi, who spoke with The Nation in Abuja, said members who paid for the Premium Motor Spirit (PMS) since last two weeks were yet to get the product.

    He said: “We have paid the money and we cannot access the product. The way we have been buying products from them is above government stipulated rate of N133.28. We are buying it at the rate of N140 and N141, yet you cannot access it.  If the government does not take extra care, definitely we are expecting a serious scarcity.”

    Reacting to the development, the Nigerian National Petroleum Corporation (NNPC) said it has imported  10 vessels laden with petrol currently offshore Lagos.

    Its  Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a text message yesterday, added that the oil firm  has over one billion litres  of petrol that it has spread across the various depots in the country.

    He urged IPMAN to pay for the products to private depots only when they are sure of availability.

    Ugahmadu said: “We have over one billion litres spread across many depots nationwide with 10 import vessels currently offshore Lagos laden with PMS.

    “We advise marketers to patronise NNPC depots, pay for product to private depots only when they are sure such depots have stock to avoid being used to finance their procurements and report to DPR, depots  that sell above N133.28.”

    Maigandi said an attempt to deregulate the petrol market will aggravate the situation, urging the government to fashion out a measure for managing the fuel market before it gets out of hand.

    He said the NNPC depots that are selling the product at the official pump price of N133.28 per litre while the private depot owners have hiked their rates to between N40 and N41 per litre.

  • Subsidy: Marketers rely on banks for growth

    Marketers are likely to record positive growth if the Central Bank of Nigeria’s (CBN) directive to commercial banks on freezing interests on loans taken by them (marketers) to import petroleum products into the country is implemented, the Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN),Executive Secretary, Mr Femi Adewole, has said.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    In an interview with The Nation on phone, he said banks have been mandated by CBN to freeze the interests on loans given to marketers to import fuel into the country, adding that marketers would have some money for operation should the banks comply with the directive of the apex bank.

    He said marketers are in limbo following their inability to raise funds for operation, adding that the stoppage of interests on their loans is bound to bring growth.

    Adewole said: “Banks are supposed to freeze the interests on facility used for fuel importation in line with the CBN’s directive. They are supposed to net-off interests on oil subsidy loans. Every interest on debt incurred by marketers, as a result of importation of Petrol Premium Spirit (PMS), as from July 4, 2018 till date, is expected to be net-off by banks.

    “If some of the debts owed by marketers in the course of bringing fuel into the country are written off by banks, the better for marketers and the industry. That is why the issue of writing off the debts of the marketers is vital to the operation of the marketers and the industry.

    Banks, Adewole said, are not helping matter on the issue of payment of the subsidy arrears N237billion owed marketers by the Federal Government. This, he said, was evident by the ways and manners in which banks are handling the issue of payment of the subsidy arrears.

    “While some banks have acted on the promissory notes submitted to them by marketers, others are not. Often times, some banks are saying that they have not gotten ‘Policy Document’, which would enable them to start processing the promissory notes. This implies that a longer period of time would be spent by banks on the issue of processing  the promissory notes. This means marketers would not get the subsidy arrears in time,” he said.

    The issue of payment of subsidy arrears has generated a lot of controversy between the Federal Government and the marketers as both parties were divided on the actual amount of money owed as subsidies.  While this lasted, the government in conjunction with the Ministry of Petroleum Resources, Ministry of Finance, Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC) and the Debt Management Office (DMO) conducted investigation into fuel imports over a period of time. Subsequently, the government resolved to pay the subsidy arrears in three tranches, with the first trance paid to the marketers in form of promissory notes in December 2018.

  • Subsidy: Marketers rely on banks for growth

    Marketers are likely to record positive growth if the Central Bank of Nigeria’s (CBN) directive to commercial banks on freezing interests on loans taken by them (marketers) to import petroleum products into the country is implemented, the Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN),Executive Secretary, Mr Femi Adewole, has said.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    In an interview with The Nation on phone, he said banks have been mandated by CBN to freeze the interests on loans given to marketers to import fuel into the country, adding that marketers would have some money for operation should the banks comply with the directive of the apex bank.

    He said marketers are in limbo following their inability to raise funds for operation, adding that the stoppage of interests on their loans is bound to bring growth.

    Adewole said: “Banks are supposed to freeze the interests on facility used for fuel importation in line with the CBN’s directive. They are supposed to net-off interests on oil subsidy loans. Every interest on debt incurred by marketers, as a result of importation of Petrol Premium Spirit (PMS), as from July 4, 2018 till date, is expected to be net-off by banks.

    “If some of the debts owed by marketers in the course of bringing fuel into the country are written off by banks, the better for marketers and the industry. That is why the issue of writing off the debts of the marketers is vital to the operation of the marketers and the industry.

    Banks, Adewole said, are not helping matter on the issue of payment of the subsidy arrears N237billion owed marketers by the Federal Government. This, he said, was evident by the ways and manners in which banks are handling the issue of payment of the subsidy arrears.

    “While some banks have acted on the promissory notes submitted to them by marketers, others are not. Often times, some banks are saying that they have not gotten ‘Policy Document’, which would enable them to start processing the promissory notes. This implies that a longer period of time would be spent by banks on the issue of processing  the promissory notes. This means marketers would not get the subsidy arrears in time,” he said.

    The issue of payment of subsidy arrears has generated a lot of controversy between the Federal Government and the marketers as both parties were divided on the actual amount of money owed as subsidies.  While this lasted, the government in conjunction with the Ministry of Petroleum Resources, Ministry of Finance, Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC) and the Debt Management Office (DMO) conducted investigation into fuel imports over a period of time. Subsequently, the government resolved to pay the subsidy arrears in three tranches, with the first trance paid to the marketers in form of promissory notes in December 2018.

  • Marketers to access N234b subsidy arrears in December

    Oil marketers would have to wait till the end of 2019 to access N234billion subsidy arrears, which the Federal Government paid them in December 2018, through promissory notes.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    MOMAN’s Secretary, Mr. Clemens Isong, in an interview with The Nation on phone,  said the promissory notes through which the government paid the marketers will mature December 31st, this year, adding that marketers are not in a hurry to sell the promissory notes to avoid more losses.

    He said marketers chose not to sell the promissory notes at discounted rates as approved by law because they do not want to lose more money.

    Isong said: “The government stated it explicitly in the promissory notes’ certificate that the notes would mature December this year and we (marketers) have resolved to wait to avoid further losses.

    “The banks in which the marketers borrowed money from to finance their operation have accepted the promissory notes. Right now, reconciliation process is going on between the banks and the marketers, with a view to ascertaining the amount borrowed by marketers,” he said.

    The development, Isong said, means that marketers should wait for some time in order to access the cash for operation, adding the issue is having undesirable consequences on their activities.

    According to him, many marketers have either closed shops or died due to the debts owed them by the Federal Government, urging the banks to fast-track the issue of converting the promissory notes into cash.

    He said it was DAPPMAN, which threatened to go on strike over non-payment of the subsidy arrears, adding his members have never done so.

    Similarly, DAPPMAN’s Executive Secretary, Mr. Femi Adewole, said the promissory notes are yet to be accepted by some financial institutions, let alone commencing the process of converting them into cash for use by the marketers.

    He, however, failed to mention the names of the affected banks in order not to strain the relationship existing between them and the marketers.

    “Not all the banks have acted on the promissory notes given to marketers by the Federal Government, which serves as payment for the subsidy arrears owed them for importing petroleum. Some of the banks are waiting for what they described as ‘policy documents’ from the Central Bank of Nigeria (CBN), before they start processing the promissory notes for onward conversion into cash. Nobody can say precisely when CBN would provide the so-called policy documents,” he added.

    Adewole said there is lull in the activities of many marketers despite the payment of the first tranche of the subsidy arrears and plans by the Federal Government to settle all outstanding debts owed the marketers.

    He said some DAPPMAN members are still afloat, by working to withstand the competition in downstream, while the operation of many marketers are in limbo.

    The issue of payment of subsidy arrears owed marketers was enmeshed in controversy. The controversy culminated into different figures as the marketers had different amount and the government a different amount.

     

  • Marketers to access N234b subsidy arrears in December

    Oil marketers would have to wait till the end of 2019 to access N234billion subsidy arrears, which the Federal Government paid them in December 2018, through promissory notes.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    MOMAN’s Secretary, Mr. Clemens Isong, in an interview with The Nation on phone,  said the promissory notes through which the government paid the marketers will mature December 31st, this year, adding that marketers are not in a hurry to sell the promissory notes to avoid more losses.

    He said marketers chose not to sell the promissory notes at discounted rates as approved by law because they do not want to lose more money.

    Isong said: “The government stated it explicitly in the promissory notes’ certificate that the notes would mature December this year and we (marketers) have resolved to wait to avoid further losses.

    “The banks in which the marketers borrowed money from to finance their operation have accepted the promissory notes. Right now, reconciliation process is going on between the banks and the marketers, with a view to ascertaining the amount borrowed by marketers,” he said.

    The development, Isong said, means that marketers should wait for some time in order to access the cash for operation, adding the issue is having undesirable consequences on their activities.

    According to him, many marketers have either closed shops or died due to the debts owed them by the Federal Government, urging the banks to fast-track the issue of converting the promissory notes into cash.

    He said it was DAPPMAN, which threatened to go on strike over non-payment of the subsidy arrears, adding his members have never done so.

    Similarly, DAPPMAN’s Executive Secretary, Mr. Femi Adewole, said the promissory notes are yet to be accepted by some financial institutions, let alone commencing the process of converting them into cash for use by the marketers.

    He, however, failed to mention the names of the affected banks in order not to strain the relationship existing between them and the marketers.

    “Not all the banks have acted on the promissory notes given to marketers by the Federal Government, which serves as payment for the subsidy arrears owed them for importing petroleum. Some of the banks are waiting for what they described as ‘policy documents’ from the Central Bank of Nigeria (CBN), before they start processing the promissory notes for onward conversion into cash. Nobody can say precisely when CBN would provide the so-called policy documents,” he added.

    Adewole said there is lull in the activities of many marketers despite the payment of the first tranche of the subsidy arrears and plans by the Federal Government to settle all outstanding debts owed the marketers.

    He said some DAPPMAN members are still afloat, by working to withstand the competition in downstream, while the operation of many marketers are in limbo.

    The issue of payment of subsidy arrears owed marketers was enmeshed in controversy. The controversy culminated into different figures as the marketers had different amount and the government a different amount.

  • Marketers to DPR: locating gas plants in fuel stations dangerous

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has frowned at the locating liquefied petroleum gas (LPG) refilling plants in petroleum retail outlets, saying it is dangerous.

    The marketers also urged the Department of Petroleum Resources (DPR) to stop giving approvals to such ventures.

    The NALPGAM President, Mr. Nosakhare Ogieva-Okunbor, said addition of skid gas plant in fuel stations is dangerous, and urged the DPR to discontinue the approval of selling LPG, also called cooking gas, in petrol filling stations.

    He said both the LPG and the premium motor spirit (petrol) are highly inflammable and needed to be on separate locations as LPG cylinders are highly hazardous.The NALPGAM chief expressed worry over the increasing number of filling stations selling cooking gas, not minding the hazardous implications.

    Ogieva-Okunbor said the proliferation of fuel and gas-filling stations in the same location across the country has raised safety concerns, considering the less than satisfactory compliance with minimum environmental safety requirements for the operations of those facilities.

    According to him, some filling station owners are in the habit of installing ad-on gas machine later in their fuel stations, but which was not in the original building plans at the onset. “As a matter of urgency, the DPR should commence dismantling of such gas plants in filling stations.

    “Most stations have neglected the rules and regulation. They are now locating gas plant in most stations across that states. Today, we see some people installing gas plants close to  eateries’ kitchen within their stations and this is dangerous while they are discharging gas and selling fuel.

    “We, the NALPGAM members cannot open our eyes and watch for something drastic to happen before we raise alarm,” he said.

    Ogieva-Okunbor, however, called on the Federal and state governments to live up to their responsibilities by checkmating the fuel stations. He also said government should commence immediate demolition of such illegal gas plants within such fuel stations. “The earlier the government and officials act fast, the better for Nigerians.

    “I also use this opportunity to thank the governments of Ogun and Ekiti states for stopping such act and sanitise the industry in their respective states. The states do not allow gas plant in filling station, I also urge other states to follow suit in banning gas in fuel stations.

    “Plant operators must be conversant with all safety needs of the LPG plant operations. Gas plant should stand alone without being attached to filing stations,” Ogieva-Okunbor said.

    He advised the DPR to embark on an operational facility audit of unlicensed gas plants within filling stations to ensure strict compliance to statutory guidelines and standards.

    He said most stations are trying to bastardise government’s free hands to promote and deepen cooking gas utilisation. “But we under NALPGAM, will not allow those who neglect the guidelines and principles to spoil the market,” he said.

    He said Nigeria must move quickly in the direction of greater per capita consumption of gas, noting that many continued to depend on kerosene and firewood for their cooking, despite the attendant negative implications.

    Ogieva-Okunbor said cooking gas remained cleaner and cheaper and therefore, should be the preferred option for fuel users and urged government to fast-track its plans to make millions of homes use cooking gas within two years.

    According to him, there is hardly any doubt that the socio-economic benefits of switching from kerosene, firewood and charcoal to cooking gas are innumerable. “For instance, Nigeria has commercial reserves of natural gas. LPG is also known to be cheaper and cleaner than other domestic fuels,” he said.

  • Alleged $8.4m theft: EFCC arraigns two oil marketers, oil firm

    The Economic and Financial Crimes Commission (EFCC) yesterday arraigned two oil marketers, Yusuf Kwande and Osahon Asemota, in an Ikeja Special Offences Court for allegedly stealing 6.4 million metric tonnes of Automated Gas Oil (AGO) worth $8.4million.

    They were arraigned alongside an international oil and gas company – Trafigura Beheer BV, Trafigura PTE Ltd and their Nigerian associates- Mettle Energy and Gas, Renbrandt Ltd. and Jil Engineering and Oil Services Limited.

    They, however, pleaded not guilty to the three-count charge of conspiracy, stealing and receiving stolen property preferred against them by the EFCC.

    The EFCC accused the defendants of fraudulently converting the AGO at the office of Trafigura Beheer BV located at 20A, Sinaro Daranijo Street, off Ligali Ayorinde Street, Victoria Island, Lagos.

    According to Mr. Rotimi Jacobs (SAN), the lead EFCC prosecution counsel, the defendants committed the offences of stealing from October 22, 2008 to December 15, 2008.

    Read also: EFCC arraigns two oil marketers, international company

    He said the stolen AGO worth $8.4million, was the property of Nadabo Energy Limited and was kept in the legal custody of the now defunct Spring Bank on Victoria Island.

    Jacobs noted that the offences contravened sections 383(1), 427 and 516 of the Criminal Code Law of 2004.

    Following the defendant’s not guilty plea, counsel to the defendants sought to move their bail applications, but Jacobs told the court that three of the prosecution witnesses present in court requested that the trial begin immediately.

    Mr. Emefun Etudo, the first prosecution witness and a former lawyer to Asemota and his companies narrated to the court how the defendants connived to defraud Nadabo.

    He said: “Nadabo Energy is a contractor to Mobil and it was given a purchase order to supply 10,000 metrics tonnes of AGO to Mobil in 2008. Nadabo was given about $15million by Spring Bank via a letter of offer dated February 29, 2008, to effect this transaction.”

    Justice Dada adjourned the case till December 10, 11 and 13 for continuation of trial.