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Tag: marketers

  • Fuel scarcity: Sokoto pledges support to marketers

    The Sokoto State government has expressed readiness to assist independent petroleum marketers to enter bulk purchase agreements with the Pipelines and Products Marketing Company (PPMC).

    The Commissioner for Commerce, Industries and Tourism, Alhaji Aminu Bello who spoke yesterday during an emergency stakeholders’ meeting convened with officials of the Department of Petroleum Resources( DPR) as well as major and independent petroleum marketers in the state, said it was part of measures designed to ensure free flow of economic activities in the state.

    Fuel sacrcity has consistently been affecting economic activities in the state with the price of a litre of petrol hovering around N110 and N120 per litre against the N87 per ltre regulated price.

    ‘’This is against the government-approved pump price of N87 per litre and it is highly unacceptable to the government, because the ugly situation had caused untold hardship to the people of the state in  the past few weeks,’’ Bello lamented.

    He noted nearly 95 per cent of the independent marketers lacked bulk purchase agreement with the PPMC which further aggrevated the trend, adding that “ it is the cause of the ugly situation, resorting to buying petroleum products from third parties’’ above the pump price.

    He lamented that the marketers in turn sold the commodity to the motorists above the pump price and in contravention of  Federal Government’s regulations.

    Speaking, the Sokoto Zonal Operations Controller of DPR, Mr Mohammed Makera promised that the agency would not hesitate to seal any erring filling station.

    Also speaking, Secretary, Independent Petroleum Marketers’ Association of Nigeria (IPMAN), Sokoto Branch, Alhaji Aliyu Longman said the association is ready to cooperate with the DPR and the state government to provide succour to the people of the state.

    He lamented that operators of the private depots, which made up to 70 per cent were selling the commodity to them at N 90 per litre, as against N 77.06k government-approved pump price.

    ‘’We are only getting the commodity at the official pump price from the government depots which make up only about 30 per cent of the depots in the country,” he said.

  • Fuel scarcity hits Lagos, Ogun as marketers shun importation

    Fuel scarcity hits Lagos, Ogun as marketers shun importation

    Fuel scarcity, which had disappeared since April, resurfaced yesterday in Lagos and some parts of Ogun State with long queues at several retail outlets.

    It was learnt that there was a huge supply deficit because some oil marketers refused to import the product, leaving only the Nigerian National Petroleum Corporation (NNPC) as the sole importer of premium motor spirit (petrol).

    A marketer told our correspondent in confidence that demand far outstripped supply, adding there were over 200 retail outlet owners who had paid for petrol in the last three months but could not get supply.

    The marketer said his colleagues told the NNPC that they did not have money, besides being owed over N200 billion in verified subsidy claims.

    He said this was why many marketers could no longer import fuel.

    “It is only the NNPC that currently imports, and its focus is on Abuja and Lagos. Other states have been experiencing scarcity in the last three months. Fuel trucks from such states have been flooding Lagos, creating pressure on supply. Some of the truck owners have paid for fuel in the last two to three months but have not been able to load.

    “Some depots sell to fuel truck owners at between N85 and N86 per litre instead of the regulated price of N77.66 per litre. So, it would not be a surprise to see some filling stations selling above the regulated pump price of N87 per litre,” he said.

    But NNPC’s spokesperson Ohi Alegbe debunked the claims.

    He said NNPC, through the Products and Pipelines Marketing Company (PPMC), had been importing and supplying marketers the fuel for distribution to consumers.

    Alegbe accused some marketers of sabotage to create the impression that there is scarcity.

    He said: “It is the NNPC, through the PPMC, that has supplied the nation premium motor spirit (PMS) over the seasons. PPMC has sufficiently wet the country with fuel and we have more than enough stock to go round. The Department of Petroleum Resources (DPR) has been advised to ensure that marketers don’t divert or hoard products.

    “We use our depots in other states. Therefore, to state that we focus on Lagos and Abuja is incorrect. To frustrate the efforts of the government, some of the marketers deliberately refuse to dispense fuel to create artificial scarcity.”

    He said there was a contention about subsidy and the controversy over volume of PMS consumed across the country.

     

  • Oil marketers, govt dialogue over subsidy arrears

    Oil marketers, govt dialogue over subsidy arrears

    Oil marketers, including Oando and Mobil, have adopted moral suasion to woo the Federal Government to pay their fuel subsidy arrears.

    The Chief Operating Officer, Oando Marketing Company, a subsidiary of Oando Plc, Mrs. Williams Olaposi, gave this indication on the sidelines of the inauguration of Oando Truck Marshalling Yard 2, and Sapara Road project in Apapa, Lagos.

    She said the firms that were approved by the Federal Government to collect subsidies are law- abiding, and prefer dialogue to protest on the payment of subsidies arrears owed them by the government.

    She said oil marketing companies are corporate entities, which place the interest of the nation above personal interest, and would, therefore, not want to do anything that would affect the generality of the people.

    Olaposi said: “We (marketers) are corporate organisations; we are not going to down tools because we have not been paid subsidies by the government. We would continue to push for our subsidies until we are paid. We would not suffer the community, the good people of Nigeria, on the issue. We would not stop importing because that would amount to grounding the country to a halt.”

    She said the marketers  employed dialogue as part of efforts to identify with the resolve of the government of President Muhammad Buhari to fix the economy. Olaposi said the Chief Executive officers (CEOs) of oil marketing companies have been going to Abuja, the nation’s Federal Capital, to meet people who can considerably assist them in persuading the Federal Government to pay the subsidy arrears they have spent on importing fuel into the country.

    “We (marketers) meet with the Federal Government regularly on the issue of payment of subsidy arrears, which the government owes us. Our Chief Executive officers always in Abuja to meet the helmsmen of the Nigerian National Petroleum Corporation (NNPC); we are speaking with the think-tanks in the Presidency on the issue,” she added.

    Also, the Managing Director, Mobil Oil Nigeria Plc, Tunji Oyebanji said there was no where the major oil marketers had held the country to ransom over non-payment of their subsidy arrears. Fielding questions from reporters on why marketers still import fuel despite the huge subsidy arrears owed them, Oyebanji said the marketers are hopeful that the government would meet its debt obligations to them some day.

    He said the Mahammadu Buhari administration has promised to pay marketers their subsidy arrears.

  • NCAA to register aviation fuel marketers

    NCAA to register aviation fuel marketers

    Nigerian Civil Aviation Authority (NCAA)  said it would commence the registration of all  Aviation Fuel Marketers very soon.

    As part of preparations for the registration , the Aviation Regulatory authority said said it has initialled all modalities and prerequisites concerning the exercise with aviation fuel marketers .

    Disclosing this at the weekend, its Director General, Captain Mukthar   Usman, said  all existing aviation fuel suppliers would be required to register and regularise their operations with the NCAA .

    He said new entrants would file fresh application with the same requirements.

    This action is not unconnected with the recent controversy and cross allegations concerning the Jet A1 supply and usage by the airline operators.

    Usman charged relevant departments and officials of the Authority to quickly hold a meeting with the marketers and stakeholders to sensitise them on the guidelines and requirements for registration prior to the exercise.

    He said :” To register as an aviation fuel supplier, an application should be written and addressed to the Director General, Nigerian Civil Aviation Authority (NCAA).

    The application shall be signed by the lead promoter or Chief Operating/Executive Officer of the company and the airports/terminals where it intends to operate.

  • DPR battles petroleum marketers in Bayelsa

    DPR battles petroleum marketers in Bayelsa

    It is a new regime for petroleum marketers in Bayelsa State. They must play by the rules and observe all the regulations governing the industry. The new culture of doing things properly without profiteering is being initiated by the Bayelsa State Office of the Department of Petroleum Resources (DPR).

    The department will no longer tolerate selling petroleum products especially Petrol Motor Spirit (PMS) above the Federal Government regulated prices. It will no longer allow marketers to engage in underhand practices such as under-dispensing, hoarding and other sharp practices aimed at shortchanging unsuspecting members of the public.

    Recently, the department led by its Operations Controller in the state, Mr. Bassey Nkanga, met with the marketers and read the Riot Act to them. Prior to the meeting, the marketers were having a field day selling PMS between N110 to N115 per litre with the exception of the NNPC mega station which was selling at the regulated pump price of N87 per litre.

    But Nkanga at the meeting with the Independent Petroleum Marketers of Nigeria (IPMAN) ordered the marketers to revert to the regulated price regime. The controller, also warned against under-dispensing of the product to consumers. He said under-dispensing is a form of surcharging the public and selling above the pump price through the back door.

    He told the marketers that defaulters would be thoroughly sanctioned adding that the punitive  measures would include fines, shutting down filling stations for between six and nine months  and outright sealing off.

    Nkanga also warned dealers who engage in adulteration and diversion of petroleum products to desist from such acts. He said the department would punish any marketer engaged in adulteration and diversion of products.

    He said: “We are ensuring that fuel is sold at the approved pump price of N87 and this is with immediate effect. Any defaulter in any form will be adequately sanctioned. Compliance is with immediate effect because penalties would range from fines, shutting down of stations for up to six and nine months.

    “If you divert, we will charge you N200 per litre of the fuel you diverted. If you under-dispense you will be sanctioned appropriately.”

    At the meeting, Spokesman for IPMAN in the state, Ere Peters, said members of the association would comply with the order to revert to the controlled price.

    But the Nkanga-led DPR did not stop at the meeting. The controller immediately constituted a team to go round the filling stations and ensure that marketers complied with the directive. The team stormed filling stations and discovered that some filling stations were still engaged in sharp practices. The team immediately sealed off stations engaged in under-dispensing and selling above the pump price. Some of the stations tried to prevent the DPR team from doing their job. They were punished.

    Among the filling stations sealed for dispensing fuel above the pump price through the “back door” and refusal to allow DPR officials access, were RSK Oil, GA Oil and Gas, Mobil and South-South Oil and Gas.

    For instance, at RSK Oil in Swali area of Yenagoa, the team discovered that the meters were fixed at N87 per litre, but when officials asked the attendants to dispense the product into 10-litre  equipment, they found that the meter had been badly readjusted to cheat consumers.

    The team noticed that product worth N674.25 was sold for N870.00, which meant that consumers were paying extra N195. 75 for every 10 litres of petrol bought at the station. The station was also indicted for not having adequate sand buckets and fire extinguishers.

    Similar discovery was made by the team at GA Oil and Gas on Ox Bow Lake Road. The station was collecting over N140 extra for every 10 liters sold to buyers through under-dispensing. When officials of the DPR returned to South-South Oil and Gas sealed off earlier, they discovered that the station had reverted to the regulated pump price of N87.

    Nkanga said: “We are trying to ensure that nobody sells petroleum above the stipulated price of ?87. The renewed effort is tend towards ensuring that the public also enjoy the price regime of petroleum. That’s why you are seeing us going out en mass and daily, stepping up as surveillance. The essence of it is to ensure that marketers don’t sub-charge the public any longer.

    “When we discover that somebody is grossly under-dispensing, we conclude that the person is selling above the pump price and we close the station and make the penalty to be likethe one selling above pump price. But if it is just normal under-dispensing, we will take it as an error and suspend you and ask you to adjust your pump.

    “Timicon was sealed for selling above N87 per litre. The other one that was suspended for under-dispensing was made to sign an undertaking that they will adjust the pump and not sell above the pump price. That was South-South Oil and Gas.

    “There was one that said he had no product and later claimed that he was trying to fix his generator that went bad. We will do monitoring for that one. We will start with them and ensure they sell what they have so that they don’t sell above pump price. The one that has been shut will remain sealed until he pays the penalty and sign an undertaking never to wilfully under-dispense again.

    “Now the government is putting its feet down that the depots must sell at the government regulated price no matter the condition. That is why everywhere in this country, this change is experienced.

    “Prior to this problem, I had a lot of issues and petitions with Bayelsans when I just got here. But because we knew what we were doing, we maintained our focus.”

    On the punishment for defaulters, he said: “Anybody that is found selling above pump price will pay a penalty of ?100,000. If we catch you three times, you’ll pay three times too. We may decide to punish you immediately or let you exhaust what you have under the ground first. We may decide to shut you down.

    “We are sustaining this monitoring. I have given my telephone number out. The staff we have re the people coming from other places. We tell the public that if they are not satisfied with the volume dispensed to you or the fuel was sold above the pump price, they should call the number and we will respond timely.”

  • Tyranny of oil marketers in Ogbomoso

    SIR:Independent oil marketers in Ogbomoso have become a clog on the wheel of progress in the town, and the earlier men of conscience make their voices heard the better for the town and its economy. As at the time of writing this report, these shylocks have stopped selling fuel and making life difficult for the people, adding to the agony which the economic recession in the country had imposed on the people. The cartel has formed a parallel government in the town and determining the spate of business.

    In actual fact, since multinational oil companies like Total, Oando, Texaco, Master Energy, and even NNPC have closed shops or working skeletally, independent oil marketers have been employing their majority and unity to cheat the customers. Instead of selling at the normal price of N87 per litre, they sold between N110 and N105. In spite of that, they still ration the selling of the products. At times, when the task force visits the town, the visit is used as an excuse not to sell at all as being witnessed at the moment. Meanwhile, they have fuel in their stations.

    In the past, people believed that a prominent traditional ruler in the town, who doubled as an oil dealer was behind the invincibility and power wielded by the marketers. However, having leased out his filling station to the NNPC, the situation has not changed. There is no doubt that people are fed up with the murderous activities of the marketers and no one can say precisely what the reaction of the people will be if the actions are not checked; this makes the appeal to the concerned authorities imperative.

     

    • Abdulsalam Olalekan,

    Ayedaade, Ogbomoso.

  • N291b subsidy debt: Govt, marketers in waiting game

    After a stakeholders’ meeting convened by the government early last month when the oil marketers were promised reimbursement of their outstanding fuel subsidy, the marketers are yet to hear from the government. The marketers have also decided to continue to quietly wait despite the government’s “worrisome” silence.

    The Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore in a telephone chat with The Nation, said since the meeting with the government, they (marketers) have not heard from them (government). He said: “We have met with the government and they promised to pay but we have not heard from them since then.” He refused to make further comment on the issue.

    The implication of non-payment of the debt is that the interest has continued to soar. As at the time the Federal Government made the last payment in April, the outstanding was a little above N200 billion but by end of May the Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), Mr. Olufemi  Adewole said the debt has gone up to N291 billion. The major marketers and DAPPMA members are jointly owed the subsidy debt. Therefore, with the increasing interest on the loan, the debt will by now be well over N300 billion.

    The marketers have since May refused to make further imports of fuel. They have insisted that until the government clears the arrears, they will not import. Currently, it’s only the Nigerian National Petroleum Corporation (NNPC) that imports and the Corporation only has the capacity to meet 50 per cent of national demand of about 40 million litres per day of premium motor spirit (petrol). The situation accounts for the recurrence of scarcity and selling of the product above regulated price of N87 per litres by some filling stations especially those owned by independent marketers.

    To ease distribution and make the product accessible to consumers, NNPC gives the marketers part of its imports to sell in their retail outlets. NNPC doesn’t have adequate retail outlets that will enable fuel consumers access the product.

    The Permanent Secretary, Ministry of Petroleum Resources, Mr.Taiye Hassan Haruna at the beginning of last month, had a closed door meeting with the ministry’s agencies and stakeholders in the oil and gas industry including members of MOMAN, DAPPMA, Pipelines and Products Marketing Company Limited (PPMC), Petroleum Tanker Drivers (PTD), members of the National Association of Road Transport Owners (NARTO) and the Department of Petroleum Resources (DPR).

    The stakeholders reached an agreement to ensure steady flow of fuel but with a promise from the government that outstanding subsidy debt would be paid but a month after, the promise has remained unfulfilled.

  • Subsidy: Govt owes marketers, depot owners N291b

    Subsidy: Govt owes marketers, depot owners N291b

    The Federal Government owes members of the Depot and Petroleum Products Marketers Association (DAPPMA) and the Major Oil Marketers Association of Nigeria (MOMAN) over N291 billion in unpaid subsidy reimbursement for fuel imported under the petroleum subsidy scheme, interest on delayed payment and foreign exchange differentials, DAPPMA Executive Secreatary,  Olufemi A. Adewole has said.

    Adewole said the aftermath of the Senate Committee’s meeting with major petroleum industry stakeholders that persuaded the petroleum tanker drivers, and NARTO to call off their strike and resume loading of fuel, it has become necessary to state that the two bodies are still being owed over N291 billion under the fuel subsidy scheme.

    He said: “This much was expressed to DAPPMA and MOMAN by the former Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala in her letter to both associations, a copy of which she also released to the Senate Committee for reference. However, the letter did not state the timeline for the re-verification exercise, which the minister instituted on the amount she disputed and also did not state the expected date of payment which petroleum subsidy scheme participants had been clamouring for in all the meetings held with her since February 2015.

    “It  should be noted that this is the first time since the establishment of the petroleum subsidy fund (PSF) scheme that marketers will not have ready and easy access to fuel import loans as it is also the first time that commercial banks will notify importers that based on CBN regulations, importers have attained their credit ceilings with their various banks and would have to make some refunds on the existing loans prior to being funded for petrol imports. Unfortunately, the expected refund to the banks is yet to be reimbursed by the Federal Government.

    “Due to debts owed transporters by marketers, who have been experiencing serious financial stress due to outstanding debts owed them by the Federal Government as a result of petrol imports under the petroleum subsidy scheme, the PTD-NUPENG and NARTO had at various times protested non-payment of their freight charges by withdrawing their services.”

     

  • Fed Govt owing us N291b subsidy claims, say oil marketers, depot owners

    Fed Govt owing us N291b subsidy claims, say oil marketers, depot owners

    Depot owners and Petroleum Products Marketers Association (DAPPMA) on Wednesday expressed worries over what they called outstanding N291 billion subsidy claims to marketers.

    Mr Olufemi Adewole, the Executive Secretary of DAPPMA, said in a statement that it had become imperative for the bodies to restate that they were still being owed.

    The statement was made available to the News Agency of Nigeria (NAN) in Lagos.

    Adewole classified the debts as subsidy reimbursement, interest on delayed payment and foreign exchange differentials.

    According to him, the aftermath of the Senate Committee’s meeting with major petroleum industry stakeholders persuaded the petroleum tanker drivers, and NARTO to call off their strike on May 25 and resume loading of petrol from the various depots.

    “The former Minister of Finance and Coordinating Minister of the Economy, Dr Okonjo Iweala, in her letter to DAPPMA and the Major Oil Marketers Association of Nigeria (MOMAN) did not state the timeline for the re-verification exercise on disputed subsidy claims.

    “She also did not state the expected date of payment which Petroleum Subsidy Fund (PSF) participants had clamoured for since February 2015,” he said.

    The DAPPMA scribe said the accumulation of subsidy debts followed marketers’ failure to access petroleum products import loans since the establishment of the petroleum subsidy fund scheme.

    Adewole said:“It is also the first time that commercial banks will notify importers that based on CBN regulations, importers have attained their credit ceilings with their various banks.

    “Due to debts owed transporters by marketers, marketers also have experienced serious financial difficulties following outstanding debts owed by the Federal Government under the petroleum subsidy scheme.

    “The PTD and NARTO had at various times protested non-payment of their freight charges by withdrawing their services.

    “It is unfortunate for anyone to insinuate that marketers are holding the nation to ransom through strikes.”

    Adewole also said petrol importers and marketers, who participated in the petrol subsidy scheme, were entitled to subsidy reimbursement based on the published Federal Ministry of Finance payment list.

    He described the publication of payees and other ‘PSF scheme’ participants as misleading and embarrassing, especially when government did make any payment.

  • Marketers get 6,000 tonnes of cooking gas to ease scarcity

    Marketers get 6,000 tonnes of cooking gas to ease scarcity

    To  ease cooking gas scarcity, the Nigeria Liquefied Natural Gas(NLNG) has supplied 6,000 metric tonnes of Liquefied Petroleum Gas(LPG) to oil marketers.

    The product arrived in Lagos at the weekend, by MT Gas Provident, which  left Bonny, Rivers State, a few days ago.

    Few hours after the vessel  berthed in Lagos, the product  was  distributed to oil marketing firms  such as Conoil, Mobil, MRS, Nipco and others, by the Federal Government.

    The aim was to ease     scarcity caused by  the strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Association of Petroleum and Natural Gas Workers (NUPENG).

    The strike, which was called off last week, has seen prices of cooking gas normalising because tanker’ drivers who are members of PENGASSAN and NUPENG have resumed  supply  of the product to marketers.

    The Nation  findings  revealed     that   prices of cooking gas have reduced  because  marketers are no longer rationalising the product.

    It was found that prices which went up by  between 70 to 100 per cent has reduced to 30 per cent, depending on the areas  consumers buy from.

    In some places, consumers  now refill a 2.5kilogramme gas cylinder with between 3, 000 and N3,200,  as against N4,000 they paid during the scarcity.

    At Iyana- Ipaja, Egbeda, Ikeja, Oshodi,  Yaba, Maryland, among other  has visited by The Nation, the price of the cooking gas has reduced slightly.

    Marketers said the scarcity of the product and the attendant increase in prices caused by the strike has reduced.

    A marketer, who identified himself as Joshua Roland, said the scarcity of cooking gas  has disappeared, adding that marketers are  getting  the product to sell.

    He said: “Anytime there is shortfall in the supply of gas in the country, either due to strike or technical problems from the Nigeria Liquefied Natural Gas Limited (NLNG), what I do for my loyal customers, is reserve and sell to them. “A good businessman must know the needs and mindset of his customers to stay in business,” he said.

    A  gas dealer in Ikeja,  Moses Adeoye, said the scarcity has had untold effect on their operation. He said the problem was compounded by power supply and fuel scarcity.

    He said the campaign for increased use of cooking gas by the Nigerian National Petroleum Corporation (NNPC) and operators such as Oando and Forte Oil, have not been effective because of the problems in the sector. “How can people use cooking gas for domestic and industrial purposes when they cannot get the product to buy when needed? How can the government achieve the goal of making people use cooking gas when it cannot remove the bottlenecks hindering supply of the product?

    The President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Dapo Adesina, said the scarcity of cooking gas and rise in price was expected, given the strike. He said the strike affected the distribution of the product across the country, stressing the situation is normalising  now that the strike has been called off.