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  • Senate orders NNPC to end fuel scarcity in two weeks

    Senate orders NNPC to end fuel scarcity in two weeks

    THE Senate has ordered the Nigeria National Petroleum Corporation (NNPC) and other agencies under the Ministry of Petroleum Resources to end petroleum products’ scarcity within two weeks.

    The upper chamber said notable sharp practices, including discrepancies in prices of petroleum products, such as Premium Motor Spirit (PMS), and hoarding of products, should be stopped.

    Chairman, Senate Committee on Petroleum (Downstream) Senator Lillian Ekwunife gave the order yesterday at a meeting with officials of the ministry and its parastatals in Abuja.

    The Senate, on Tuesday, asked the committee to investigate the circumstances surrounding the perennial fuel scarcity in the country.

    Mrs. Ekwunife insisted that the citizens were not interested in efforts by the NNPC, Pipeline Products Marketing Company (PPMC) and other agencies to ease the biting fuel scarcity.

    What Nigerians want, she said, was availability of products.

    “We are mandating the minister, the permanent secretary and other relevant agencies to end fuel scarcity  in two weeks. Discrepancies in prices of products must also end,” she said.

    The lawmaker said the committee would like to know why the country’s refineries were no longer working and why fuel scarcity had become perennial.

    Nigerians, she noted, were being faced with fuel scarcity once again in the last one month.

    The Anambra Central senator said the committee would like to know the marketers, who would be paid N413 billion oil subsidy requested by President Muhammadu Buhari in his supplementary budget, which is before the National Assembly for approval.

    Mrs. Ekwunife, who said the Senate was aware that not all claims by marketers were factual, gave the Petroleum Products Regulatory Agency (PPRA) 24 hours to submit documents detailing subsidy claims by marketers to the committee.

    The Senate, she said, was aware that some of the marketers engage in sharp practices aimed at defrauding the country.

    Vice Chairman of the committee Senator Barau Jibrin reminded the officials that the President Muhammadu Buhari administration was elected based on the change mantra.

    He noted that in line with the change mantra, the country must change for the better.

    The senator said the Senate was seeking a permanent solution to fuel scarcity.

    The Kano North lawmaker wondered why the country was still paying the same amount of subsidy when crude price has crashed.

    He said: “When the price of crude was $140pb, we paid a certain amount as subsidy. Now the price has crashed to about $40, we are still paying the same amount. We want to know what is happening.”

    Executive Secretary, PPRA Ahmed Farouk told the committee that subsidy elements were driven by the price of gasoline.

    He added that the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, had directed that unnecessary costs connected to importation of products should be eliminated.

    He said outstanding “subsidy arrears for 2014 is N120 billion while the outstanding subsidy payment for 2015 up to October 31 is N294 billion, totalling N414 billion”.

    He added that outstanding subsidy payment was based on actual discharges.

    The committee demanded to know the number of marketers involved, but the executive secretary did not give the figure.

    The committee was also worried that the supplementary budget for subsidy did not cover November and December 2015.

    On why fuel scarcity persisted, the Executive Secretary, PPMC, Babatunde Adeniran, blamed it on marketers, who failed to import products.

    Adeniran said it was only the PPMC that was importing products.

    He added that the security agents were brought in to assist when sharp practices were observed in the supply chain.

    The PPMC executive secretary noted that to avoid recurring scarcity, “subsidy money has to be paid as at when due”.

    He said they were also working to fix broken pipelines.

    The Permanent Secretary, Ministry of Petroleum Resources, Mrs. Jamila Shu’ara, stressed the need to build strategic product reserve depots.

    The PPMC’s Managing Director, Esther Nnamdi-Ogbue, lamented that  some people in the industry were sabotaging PPMC’s efforts to stabilise fuel supply.

    Some marketers, she said, were not helping matters, adding that some marketers, instead of discharging products at designated filling stations, connived to sell some to black marketers.

    Esther Nnamdi-Ogbue noted that her officials were spending sleepless nights monitoring the supply of products to filling stations with the aim of preventing sharp practices.

  • NNPC loses N50b petrol to thieves

    NNPC loses N50b petrol to thieves

    The Nigerian National Petroleum Corporation (NNPC) yesterday said 531 million litres of petrol, valued at over N50 billion was lost to pipeline vandals between January and September.

    This occured at the problematic System 2B Pipeline network which stretches from the Atlas Cove in Lagos to Ilorin, the Kwara State capital.

    In a presentation to the Senate Committee on Petroleum Downstream, the Managing Director,  Pipelines and Product Marketing Company  (PPMC), Mrs. Esther Nnamdi-Ogbue, said the losses accrued from the incessant hacking of the pipeline at the Arepo to Mosimi axis of the artery. This has made providing seamless flow of petroleum products to retail outlets more burdensome.

    Mrs. Nnamdi-Ogbue said that despite the challenge posed by the inavailability of the vital System 2B Pipeline network, the PPMC has continued to ensure that the country remains wet with petrol through massive truck-out from depots in Lagos, Oghara and recently Calabar.

    She said the spirited efforts made so far by the Corporation to entrench zero fuel queues across the country were being hampered by the activities of some unscrupulous marketers involved in hoarding, sharp practices and diversion of petroleum products for sale in black markets across the country.

    NNPC’s Group General Manager, Group Public Affairs Division, Ohi Alegbe, who said this in a statement, quoted her as saying, “We view this as a distortion to the economy and we have invited the DSS and the EFCC to take action.”

    Earlier in his presentation, the Group Executive Director, Commercial and Investment, Dr. Babatunde Adeniran, told the Senate Committee that the fuel situation was exacerbated by the inability of oil marketers to meet their import allocation quota due to outstanding subsidy payments, thus creating a gap which PPMC has been working round the clock to bridge despite the extraneous challenges like hoarding and incessant pipeline hacking..

    Answering a question on the ways to ensure a lasting solution to fuel scarcity,  Dr. Jamila Shu’ara, Permanent Secretary of the Ministry of Petroleum Resources and leader of the delegation, stressed the need to build strategic reserve stock of petroleum products akin to the national grain reserves across the country.

    Senator Uche Ekwunife, Committee Chairman, while acknowledging the efforts made so far made by the NNPC to ensure unimpeded fuel supply,  gave the Ministry two weeks to ensure sanity in the supply and distribution of petroleum products across the country.

  • DPR seals off 50 petrol stations in Ibadan

    DPR seals off 50 petrol stations in Ibadan

    The Department of Petroleum Resources (DPR), Oyo and Osun field office has sealed off more than 50 petrol stations in Ibadan and environs for hoarding and selling the product above government approved price.

    It has also embarked on aggressive disposal of the product at filling stations that are creating artificial scarcity in different parts of the state.

    Notably, a filling station allegedly belonging to a former senator from Oke Ogun part of the state was among those sealed off by the DPR.

    Another belonging to a former governor from Ogbomosho, which was sealed off few weeks back was also one of those compelled to reverse its sales to government approved price during the inspection

    Meanwhile, it was a bad day for many marketers as no fewer than 50 filing stations who were found to be hoarding petroleum and kerosene, and noted to be planning to sell at odd times at exorbitant prices were also sealed off in different parts of the state

    Many petroleum marketers across the state have been cashing in on the masses by selling the product at prices far above the government regulated prices while only few major marketers selling at the official prices experienced massive crowd with many people spending more than ten hours on queue to get the product.

    Investigation revealed that, the product in the last few days in major parts of the state sold between N120 and N150 per litre.

    Same could be said of kerosene which now sells between N95 and N100 per litre.

    Some of the filling stations where the enforcement took place in Ogbomosho are: TDB global venture limited, allegedly belonging to a former governor of the state, Modern Options, Isale General, Ballah Plus, Sabo, Rubbie oil, Stadium road, Musalat Intergrated Resources Nigeria limited and Saajad Resourses Nigeria limited.

    The few marketers selling at government approved prices during the inspection were also supported in ensuring orderliness and promptness in the sales by officials of the department who were stationed by the team lead.

    Conoil and Oando both around Eleyele were some of the places the intervention of the officials of the DPR helped save the day when the massive crowd made selling of the products difficult for the sales attendants.

    Some of those sealed off Thursday in Ibadan also include: Prolek Molete for selling at N130 per litre and not willing to reverse sales, Alleluyah Oil, Idi-Arere, allegedly owned by a former senator in the state, for selling at  N140 per litre and Oando, Oritamefa for hoarding the product.

    Engineer Olakunle Ogunlana, Operations Controller, Oyo and Osun Field office who spoke through Mr. Sadiq Ibrahim, deputy manager (operations) said the effort is to cushion the pain fraudulent marketers’ subjected members of the public to for pecuniary gains.

    Ogunlana said: “it is unfair how some few people unduly take advantage of millions of other people just to make selfish gains. This scarcity is making things difficult for members of the public despite government intervention.

    “We will not rest until we ensure that they (independent marketers) do what is right in the interest of Nigerians. We will not allow them rubbish government efforts.”

    He however called on the marketers to show patriotism in discharging and running their business interest as government is doing enough to make the product available across the country.

  • Senate orders NNPC to end fuel scarcity in two weeks

    Senate orders NNPC to end fuel scarcity in two weeks

    The Senate on Thursday ordered the Nigerian National Petroleum Corporation (NNPC) and all the agencies under the Ministry of Petroleum Resources to end petroleum products’ scarcity in the country within two weeks.

    The upper chamber also said notable sharp practices including discrepancies in prices of petroleum products, especially Premium Motor Spirit (PMS) and hoarding of products should be stopped forthwith.

    The Chairman, Senate Committee on Petroleum (Downstream), Senator Lilian Ekwunife, gave the order at a meeting with officials of the Ministry of Petroleum Resources and its parastatals in Abuja.

    The Senate had on Tuesday asked its committee on Petroleum (Downstream) to investigate the circumstances surrounding the perennial fuel scarcity in the country.

    Senator Ekwunife insisted that Nigerians are not interested in efforts being made by the NNPC, Pipeline Products Marketing Company (PPMC) and other agencies to ease the biting fuel scarcity in parts of the country.

    What Nigerians wanted, she said, is availability of products nationwide.

    She said, “We are therefore mandating the minister, the Permanent Secretary and other relevant agencies to end fuel scarcity in the country in two weeks. Discrepancies in prices of products must also end.”

     

  • NNPC engages DSS, EFCC to fight fuel hoarding

    NNPC engages DSS, EFCC to fight fuel hoarding

    Marketers hoarding and diverting petroleum products may soon face the law as the Nigeria National Petroleum Corporation (NNPC) plans to engage the Department of State Services (DSS) and the Economic and the Financial Crimes Commission (EFCC) to tackle the menace.

    The move, NNPC said, is meant to assist in the monitoring of fuel distribution to retail outlets.

    NNPC’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe,in a statement yesterday, quoted the Managing Director, Pipelines and Products Marketing Company, Mrs. Esther Nnamdi-Ogbue, as saying that the DSS and EFCC agents had been mobilised to arrest any marketer involved in sabotaging efforts of the Federal Government in making petroleum products available to motorists.

    “We have invited the EFCC and DSS to join us in monitoring the movement of petroleum products and they have our mandate to sanction any errant marketer. Enough is enough,” Mrs. Nnamdi-Ogbue said.

    She urged motorists to desist from panic buying, assuring them that there were sufficient petroleum products to satisfy local consumption.

    The statement apologised to commuters, motorists and the public for the hardship they faced in buying fuel, assuring them that the corporation would normalise supply and distribution.

    It said NNPC’s Group Executive Director, Commercial and Investment, Dr. Babatunde Adeniran, during a visit to a depot in Suleja, warned marketers against sharp practices.

    Adeniran noted that there would be no sacred cow since the corporation was working round the clock by supplying sufficient products to marketers to ensure that citizens enjoyed a Yuletide free of fuel queues.

  • NNPC engages DSS, EFCC to stall fuel hoarding

    NNPC engages DSS, EFCC to stall fuel hoarding

    In a renewed effort at arresting hoarding and diversion of petroleum products, by some unscrupulous marketers, the Nigerian National Petroleum Corporation, NNPC has engaged the Department of State Services (DSS) and Economic and the Financial Crimes Commission (EFCC).

    The engagement of the security agencies is also meant to assist in the monitoring of nationwide fuel truck-out to retail outlets.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe made this known in a stetement Wednesday.

    While apologise to commuters, motorists and the general public for the noticeable hardship faced in accessing petrol across the country, the NNPC assured that it was doing everything possible to normalize the fuel supply and distribution situation.

    Speaking during a working visit to the NNPC depot in Suleja in Niger State and some filling stations in Abuja and environs to evaluate the current fuel supply situation, the Group Executive Director Commercial and Investment of the Corporation, Dr. Babatunde Adeniran said any marketer found wanting in the sale of petroleum products including the NNPC Retail outlet dealers, would be sanctioned appropriately.

    Adeniran noted that there would be no sacred cows as the Corporation was working round the clock by supplying sufficient petroleum products to marketers to ensure that Nigerians enjoyed a yuletide season without the pain of fuel queues.

    He said: “We must all make sure that petroleum products get across to Nigerians at the regulated price especially as the yuletide season approaches. We have enough products and we want to plead with the Petroleum Tanker Drivers (PTD) not to be involved in the diversion of petroleum products in order to avoid causing untold hardship to motorists.”

    Providing insight on the role of the security agencies in curbing product diversion, the Managing Director of the Pipelines and Products Marketing Company, Mrs. Esther Nnamdi-Ogbue said the DSS and EFCC have been mobilized to bring to book any marketer involved in sabotaging the efforts of the Federal Government in making petroleum products available to motorists across the country.

    “We have invited the EFCC and DSS to join us in this campaign of monitoring the movement of petroleum products and they have our mandate to sanction any errant marketer. Enough is enough,” Mrs. Nnamdi-Ogbue cautioned.

    She urged Nigerians and other motorists to desist from panic buying assuring that there are sufficient petroleum products to satisfy local consumption.

  • Petrol sells for N200 per litre in Umuahia

    Petrol sells for N200 per litre in Umuahia

    Some independent petroleum marketers in Umuahia are selling petrol for between N170 and N200 per litre even as the seeming scarcity of the commodity lingers on.

    However, at the black market located at strategic points in the Abia state capital, the commodity sells for N300 per litre.

    A correspondent of the News Agency of Nigeria (NAN), who monitored the situation in the area, reports that the few independent marketers selling the commodity at the approved pump price of N87 per litre are attracting long queues of vehicles as prospective buyers wait patiently for their turns to buy the commodity.

    Meanwhile, transport fare in the area has jumped by between 80 per cent and 100 per cent, depending on the distance, thereby forcing many commuters to resort to walking long distances.

    At the NNPC mega station located on the Umuahia end of the Enugu-Port Harcourt Expressway, scores of motorists and motorcyclists could be seen waiting to buy the commodity at the government-controlled price.

    A cross-section of the customers, who spoke with NAN, described the seeming scarcity as disturbing and a situation not expected during President Mohammadu Buhari’s administration.

    Augustine Okoronkwo, Steve Ahamefule, and Jenarius Ezeru, who claimed to have spent two days on the queue waiting to buy the commodity but to no avail, said that the situation had caused untold hardship to motorists.

    They, therefore, called on President Buhari to take urgent steps towards ensuring the availability of the commodity before the Christmas season.

    The Retail Sells Representative at the NNPC mega station, Mr Sampson Ene, told NAN that the station had sufficient stock, but expressed concern about what he called ‘’the disorderliness by some prospective customers.”

  • Fuel scarcity: Kachikwu assures on early solution

    Fuel scarcity: Kachikwu assures on early solution

    The Minister of State for Petroleum Resources and Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu has said that the Federal government is poised to bring to an end the fuel scarcity experienced around the country.

    Kachikwu, who made the promise Wednesday at an interactive session with House Committee on Petroleum Resources (Downstream), however said vandalization of petroleum infrastructure over the years was played a major part.

    Kachikwu was represented by the Managing Director of the Kaduna Refinery and Petrochemical Company (KRPC), Engr Saidu Mohammed.

    Chairman of the Committee, Joseph Akinlaja (PDP, Ondo), who asked NNPC to act fast on bringing the fuel scarcity ordeal to an end, said it was unfortunate that the country was witnessing another fuel scarcity having gone through one earlier in the year.

    The Committee inquired from the management of NNPC how it intended to bring the situation under control, while seeking an enduring solution to the problem.

    In his contribution, the Deputy Chairman of the Committee, Danlami Mohammed Kurfi (APC, Katsina) posited that sabotage of government’s efforts in the petroleum industry should not be overlooked.

    “NNPC must therefore act fast on this matter to ameliorate the suffering of Nigerians that spent hours on queues nationwide in order to buy fuel,” he said.

    Another member of the committee, Jones Onyereri (PDP, Imo) told the NNPC delegation that with the intrigues surrounding the fuel matter, the best solution to the problem in the petroleum industry was privatization as done in the power sector.

    Responding, the Executive Director of Pipelines Operations of Petroleum Products Marketing Company (PPMC), Felix Wono said the the management is working round the clock to bring the situation to normalcy.

    He also revealed that the management is presently engaging all relevant stakeholders with a view to remedy the fuel scarcity.

    Saying that the management is concerned about the level of vandalization of petroleum infrastructures over the years, he said all identified areas relating to supply of petroleum products are being examined for a lasting solution.

  • Petrol price soars as scarcity persists nationwide

    Petrol price soars as scarcity persists nationwide

    Pump price of petrol has continued to increase in towns across the country as scarcity of the product persists on Wednesday, the News Agency of Nigeria (NAN) reports.

    A survey by NAN in major cities across the country shows that long queues have characterised the few fuel stations that are selling the product, while others remained closed.

    Some residents in Osun expressed worry over the lingering scarcity of petrol, which according to them, has worsened the living conditions of the people.

    Mr Sulaimon Ayoola, a commercial driver at Orita-Sabo in Osogbo, said the scarcity of petrol was adversely affecting businesses in the area.

    He said that a litre of petrol was being sold for between N120 and N140 per litre at few fuel stations with long queues.

    Mrs Tejumola Oso, a trader in the Orisunbare Market in Osogbo, said the high transport fares, caused by the scarcity of petrol, had affected sales in the market.

    She urged the Federal Government to quickly intervene to ease the sufferings of the people.

    A Public Affairs Analyst, Mr Dotun Deinde, described the current situation as unfortunate and urged government to immediately arrest the situation.

    NAN reports that the situation was the same in Keffi in Nasarawa State as residents agreed that government should end to the lingering fuel scarcity.

    Mrs Cecilia Austin, a commuter, said she paid N700 from Keffi to Lafia against the usual N500.

    She said the scarcity of the petroleum products was causing untold hardship to her and many others in the area.

    She advised the Federal Government to take strong measures against petroleum dealers and marketers who were hoarding petroleum products.

    Austin advised government and marketers to address the problem immediately for social and economic development of the country.

    “It is unfortunate and uncalled for that some selfish fuel marketers are creating artificial scarcity of petroleum products in the country.

    Mr Emmanuel Anejuka, another commuter, urged government to quickly address the difficulties being experienced by Nigerians.

    Mr Haruna Abdullahi, a commercial driver, accused fuel stations of sharp practices, saying that many of them had adjusted their metres above the N87.00 per litre official pump price.

    Ayuba Danjuma, another motorist, said that petrol scarcity had forced him and other drivers in the area to resort to patronising the black market.

    NAN reports that only three fuel stations were dispensing fuel with long queues out of the 13 fuel stations in Keffi.

    Residents in Owerri and other communities in Imo also urged the Federal Government to urgently address the scarcity to ease the sufferings of Nigerians.

    Correspondents of NAN, who monitored petrol sales in Owerri and other towns across Imo, report that petrol was being sold between N140 and N200 per litre.

    Many fuel stations on Port Harcourt Road, Orji Road, and Egbu Road in Owerri sold a litre of the product for between N150 and N165 per litre.

    NAN also reports that the petrol stations in other parts of the town sold the product for between N170 and N200 per litre.

    Mr Ndubuisi Emenike, a motorist, appealed to the President to find solution to the lingering petrol scarcity to restore the confidence of Nigerians on the APC-led government.

    “During the 2015 general elections, Nigerians massively supported the ‘’Change’’ mantra of the APC on the grounds that things will get better,’’.

    Another motorist, Mrs Ngozi Duru, said she went out as early as 6.45 a.m. with her children in school uniforms in the hope of getting petrol, but could not find the product to buy.

    NAN reports that intra-city and inter-city transport fares across Imo have gone up by more than 100 per cent due to the hike in the pump price of petrol.

    In Port Harcourt, most filling stations in the city were yet to commence sale of the product to motorists.

    Residents lamented the scarcity in spite of claims by the NNPC on Nov. 16 that it had deployed 38.277 million litres of petrol to depots across the country.

    Many fuel stations in the area visited by NAN sold the product for between N200 to N215 per litre.

    NAN reports that some petrol vendors are taking advantage of the situation as a 10-litre jerry-can of petrol now goes for N3, 000, while 20-litre can cost N6, 000.

    One NNPC filling station in the city sold the product at the official pump price of N87 per litre, but with long queues of motorists and other users.

    Prices of other petroleum products such as kerosene and diesel have remained unchanged at government approved prices of N50 and N125 per litre, respectively.

    A manager of a major filling station in the city told NAN, on condition of anonymity, that petroleum depots and tank farms were hoarding products over subsidy arrears owed by the Federal Government.

    The source said that depot owners now sold the petrol at high prices at night.

    “We load petrol at a very high rate at depots and as such we have to also sell at a higher price so as to make profit,’’ he said.

    According to him, if government does not intervene quickly, the product will be sold as high as N300 to N500 per litre in the next one to two weeks.

    On the reasons most stations’ metres still read N87 per litre whereas they sell above the official price, the source said the concealment was for fear of being sanctioned by the authorities.

     

  • DPR supplies 294 trucks of PMS in Abuja – PRO

    DPR supplies 294 trucks of PMS in Abuja – PRO

    The Department of Petroleum Resources (DPR) said that 149 trucks loaded with petrol were supplied to Abuja and its environs on Tuesday.

    Mr. Mohammed Saidu, Head, Public Relations of DPR in a statement in Abuja, said that the supply brought the number of PMS supplied to Abuja between Monday and Tuesday to 294 trucks.

    NAN report quoted Saidu as saying the measure was to ease off fuel queues at filling stations in the city.

    He added that 145 trucks were earlier supplied on Monday.

    Giving the breakdown of the PMS supplied on Tuesday, he explained that 99 trucks were supplied to Abuja city with Forte oil receiving four trucks, while Conoil received 10.

    According to him, Mobil has eight trucks, as MRS gets seven, while Nipco and Oando have six and 11 trucks respectively.

    He stated that Total plc received 14 trucks, while NNPC retail was allocated 34 as IPMAN had five.

    He said that 50 trucks were dispersed to immediate and extended environment of the capital city.

    It will be recalled that the DPR Director, Mordecai Ladan, had earlier warned petroleum products marketers against engaging in sharp practices.

    He said any station caught would face sanctions, including N2 million fine and licence revocation.