Tag: petrol

  • Petrol scarcity: Queues will fizzle out soon, says House of Reps

    Petrol scarcity: Queues will fizzle out soon, says House of Reps

    • Lawmakers say logistic glitches in supply resolved

    The House of Representatives Committees on Petroleum Resources (Midstream and Downstream) yesterday assured Nigerians that the long queues at filling stations across the country will disappear in the next one or two days.

    They said the logistic problems that led to fuel scarcity, which caused untold hardship among Nigerians, have been resolved. 

    The committees’ Chairmen Ikenga Ugochinyere and Henry Odianosen Okojie gave the assurance while addressing reporters at the National Assembly complex yesterday in Abuja.

    The lawmakers said the logistic issues ranged from the difficulty experienced in transporting products from the mother vessels to onshore, the movement of products with marine shuttle vessels, and disruptions in the Escravos channels, among others.

    Reading a joint statement by the two committee chairmen, Ugochinyere said the National Assembly had got the assurances of regulators that the bottlenecks in the distribution value chain had been cleared.

    The lawmaker said investigation revealed that petroleum products were available but their distribution had some hiccups.

    He added that the country’s storage facilities had at least about 1.5 billion litres of petrol that could last 30 days.

    Ugochinyere said the National Assembly has liaised with stakeholders in the petroleum distribution value chain to address the issues that caused the long queues.

    The stakeholders, the lawmaker said, include the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and the Nigerian Association of Road Transport Owners (NARTO).

    He said the National Assembly engaged extensively with the stakeholders to ascertain the cause of the fuel queues at filling stations across the country.

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    “However, we are convinced that this is temporary, based on our investigation. In a couple of days, we shall get over it,” Ogochinyere said.

    According to him, more grounds will be covered during the Workers’ Day holiday.

    The lawmaker urged fellow Nigerians not to panic over this development.

    “We have got assurances from the regulators and the unions that these challenges will be cleared in a few days. It will require more time, like two to three days, for products to be distributed to all stations nationwide. As a committee that is charged with downstream and midstream oversight, we have been monitoring this development.

    “…We strongly frown at the activities of middlemen who have taken advantage of the short disruption of supply to maximise profit and generate inordinate gain for themselves at the detriment of our people.

    “We hereby call on security forces to support the NNPCL, NMDPRA, PETROAN, NARTO and other key stakeholders in the distribution value chain to ensure that such acts of economic sabotage that have to do with hoarding, arbitrary increment in price, products diversion and smuggling are detected and dealt with.

    “Our people have been through a lot in the last few days and we must not plunge them into further pains. We appeal to all traders and those rendering services not to unduly take advantage of this temporary challenge, which will be cleared in the next few days,” the committee chairmen said.

  • Petrol scarcity worsens in FCT

    Petrol scarcity worsens in FCT

    The Premium Motor Spirit (PMS) petrol scarcity that hit the Federal Capital Territory (FCT) since on Tuesday worsened on Thursday with most retail outlets under lock and key.

    The few ones that sold the product increased the prices to over N700 per litre. 

    Some however retained their N690 per litre amid endless queues.

    Read Also: Petrol scarcity: NOGASA urges FG to regulate diesel, dollar

    There was a heavy traffic jam at Karu and Jokwoyi on Nyanya -Orozo expressway in the morning with  customers struggling to buy petrol at all cost from some stations. 

    Independent Petroleum Marketers Association of Nigeria (IPMAN) National President, Alhaji Abubakar Maigandi, said there was shortage of supply.

    According to him, the Nigerian National Petroleum Company Limited (NNPCL) has assured the marketers that the product was available.

  • Direct allocation crashes depot’s petrol price

    Direct allocation crashes depot’s petrol price

    Prices of the Premium Motor Spirit (PMS), otherwise known as petrol, crashed from N640 per litre to N630 per litre last week as the Nigerian National Petroleum Company Limited (NNPCL) supplied one per cent of the product to independent marketers.

    The market started responding positively as soon as the private depots got a wind of NNPCL assurance to supply petrol directly to the independent marketers.

    Independent Petroleum Marketers Association of Nigeria (IPMAN), National President, Alhaji Abubakar Maigandi broke the news to The Nation on phone at the weekend.

    He recalled that the NNPCL Executive Vice President, Downstream, Dapo Segun, assured the marketers that he would be giving them direct product under the Product Finance Initiative Allocation (PFIA).

    According to Maigandi, the independent marketers are entitled to 50 per cent of product allocation but the only one per cent they have received from NNPCL hasdchanged the narrative.

    His words: “The price has started reducing since NNPCL is giving independent marketers their direct allocation. NNPCL said they will give us direct product instead of taking it to private depot to sell it to us at a higher rate.

    “It has started changing the price now even though they just gave us a small quantity. We are supposed to have 50 per cent of the distribution. Let’s say they have given us one per cent.

    “Even that one per cent has started changing the situation of the market.’’

    Depot price  has started reducing. It was previously N640 per litre. But when the rumour came, we will start getting our direct allocation, they reduced it to N630 per litre. NNPCL sells at N570 per litre.”

    The implication is that the independent marketers would not have to rely on private depots that do not have as many retail outlets as them for product supply.

  • Petrol prices across Africa

    Petrol prices across Africa

    Candidates are known for making rosy campaign promises to win elections, but which they do not intend to fulfill or cannot even fulfull. That’s why expectations were very high when, as a presidential candidate, President Bola Ahmed Tinubu made several high-stake campaign promises, involving tough policy decisions. Two such policies stood out in his manifesto. One was the removal of fuel subsidy. The other was the harmonisation of the exchange rates.

    He did not disappoint as he steamrolled both policies as soon as he assumed office nine months ago. He was praised by local and international observers for the boldness and promptness with which he acted. True, he made it clear on several occasions that the gestation period of the policy would be painful, but neither the government nor the citizens were prepared for how painful it would turn out to be. For the government, praise quickly turned to blame, while attempts to ameliorate the pain were complicated by sabotage. Besides, chronic critics and election losers capitalised on the masses’ knowledge gap to blame the President at every turn. Unfortunately, the government has not done enough to fill the knowledge gap (see, for example, my piece, How we got here, The Nation, February 14, 2024).

    For the citizens, both policies have led to widespread economic destabilasation and deepened the existing poverty level. For example, attempts to harmonise the official and parallel exchange rates have led to the devaluation of the Naira and corresponding increases in commodity prices, while the removal of fuel subsidy instantly led to a hike in petrol prices. In no time, transport costs increased across the country. The resultant inflation has made matters worse in the face of stagnant wages.

    It cannot be denied, however, that the government has continued to work round the clock to improve the economic situation. Palliatives, wage increases, infrastructure development, agricultural expansion, and release of grains from the reserve have all been rolled out or put on the table. Unfortunately, instead of engaging their state officials, who are largely responsible for implementation, some continue to protest the Federal Government. Of course, some economic problems remain unresolved, leading the Federal Government recently to set up a tripartite Economic Advisory Committee, involving the Federal Government, states, and the private sector.

    Lest we continue to misconstrue the Nigerian situation, it is important to put it in a wider perspective, by taking a look at the price of one litre of petrol across Africa. The goal is to show that, even at N650 per litre, petrol price in Nigeria remains one of the lowest on the continent, and even across the globe.

    Let me repeat: even with the price hike following the removal of petrol subsidy, the cost of one litre of petrol in Nigeria is still below the average cost across Africa and the world at large. The truth is that, apart from a few countries in Africa, mostly oil producing, such as Libya, Egypt, Algeria, and Angola, the average price of petrol in Africa is over one dollar, that is, over N1,650. For ease of comparison, I use the dollar price for the rest of this essay.

    Let’s begin with West Africa, where Nigeria, Cameroon, Ghana, and Chad produce oil in varying degrees, with Nigeria being the highest producer. While the dollar price of one litre of petrol in Nigeria is about $0.69 (that is, 69 cents), the price in Cameroon is 1.37 (that is, over N2,000). The price is less in Ghana at 1.05 (that is still over N1,650.00). However, the price in Chad is 0.84. This is closer to, but still higher than, Nigeria’s price. Other West African countries in which the litre price is less than one dollar, but still higher than Nigeria’s, are Liberia (0.80); Niger (0.97); and Gabon (0.98).

    In all other West African countries, the litre price of petrol is higher than one dollar. Here is a sample: Benin (1.12); Togo (1.15); Guinea (1.39); Burkina Faso (1.42); Sierra Leone (1.50); and Senegal (1.65). Take a look at Senegal again: In that country, the price of one litre of petrol is approaching N3,000! And that is a country where the President was attempting to sit tight the other day.

    The situation in East Africa is worse than in West Africa as there is no single country in which the litre price of petrol is less than one dollar, partly because there is no oil producing country in the region. Here’s a sample: Tanzania (1.20); Uganda (1.36); Ethiopia (1.37); Rwanda (1.4); and Kenya (1.43).

    It is a different story, however, in North Africa, where the only country that pays over one dollar for a litre of petrol is Morocco (1.53). It is close to a dollar in Tunisia (0.81), but much less in the oil producing countries of Libya (0.03) Algeria (0.3) and Egypt (0.4). Incidentally, these are oil producing countries in which crude oil is also locally refined.

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    However, local refinery did not save the day in oil producing South Africa, where the litre price of petrol is over one dollar at 1.21. This may well be due to corruption, which once reached a level described as “state capture”. But the story is different in Angola, another oil producing country in Southern Africa, where the litre price of petrol is only 0.36. In all other countries in the region, it is well over a dollar. For example, it is so in Malawi (1.50); Zambia (1.50); Zimbabwe (1.64); and Swaziland, which pays the highest price in Africa, at two dollars (that is, over N3,000) per litre.

    On a global perspective, fuel price is high around the world, the average price being about $1.30 per litre. Variations in fuel prices are generally due to variations in taxation; amount of subsidy paid, if any; level of corruption; whether or not crude oil is indigenous; and whether or not oil is locally refined or imported.

    Going by the above data, it is good news for Nigeria that she is still among the countries with the lowest litre price of petrol in the world, despite the removal of fuel subsidy. True, it has taken a toll on the citizens, but it was good riddance, because it only benefitted a few, while it lasted.

    Those who have been asking to see the savings from the subsidy should go ask their state Governors, who have been receiving more money as federal allocations since the removal of fuel subsidy. Now, with Naira gaining strength by the day, the cloud in the economic horizon is gradually clearing. Hope surely will be renewed.

  • Navy arrests two fuel ‘smugglers’, seizes 5,100 litres of petrol

    Navy arrests two fuel ‘smugglers’, seizes 5,100 litres of petrol

    The Forward Operating Base (FOB) Ibaka of the Nigerian Navy (NN) has arrested two suspects and impounded their wooden boat laden with 5,100 litres of petrol in Akwa Ibom State.

    The base’s Commanding Officer, Navy Capt. Uche Aneke, handed over the suspects, the boat and the petrol to the Nigeria Security and Civil Defence Corps (NSCDC) in Ibaka, yesterday.

    Aneke said a patrol team of the Navy arrested the suspects on February 22, following an intelligence report about suspected smuggling activities in the area.

    “Patrolling Naval gunboats were deployed to intercept the wooden boat.

    “In the boat were the two suspected smugglers and 5,100 litres of petrol concealed under bags of yams, cartons of drinks, other beverages and several cartons of floor tiles,’’ he said.

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    Aneke warned individuals and groups involved in the illegal business to desist or prepare to face the wrath of the law.

    He also warned criminals to steer clear of Nigeria’s territorial waters, stressing that security agencies would not condone illegal activities in the country’s coastal areas.

    Head of NSCDC’s anti-vandalism unit in Akwa Ibom, Micheal Asibor, who took delivery of the suspects and the exhibits assured of diligent prosecution of the incident.

  • Petrol importation drops by 3.29% in 2023

    Petrol importation drops by 3.29% in 2023

    The National Bureau of Statistics (NBS) said the importation of Premium Motor Spirit (PMS) dipped by 3.29% in the First Half of 2023.

    Its “First Half 2023 Petroleum Products Report,” noted the from the 11.56 billion litres imported in the FH 2022, petrol importation decreased to 11.94 billion litres in FH 2023.

    NBS said: “In terms of imported products, 11.94 billion litres of Premium Motor Spirit (PMS) were imported in the first half of 2023 relative to 11.56 billion litres in the corresponding period of 2022, showing an increase of 3.29%.”

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    The Bureau also informed there was 5.8% decline in the PMS petrol trucked out in the country in the First Half of 2023.

    According to the bureau, the volume reduced from the 12.19 billion litres in the corresponding quarter of 2022 to 11.48 billion litres in FH 2023.

    The report said: “In the first half of 2023, PMS truck out stood at 11.48 billion litres, indicating a 5.83% decrease when compared to 12.19 billion litres recorded in the first half of 2022.”

  • Federal Govt moves to avert nationwide petrol scarcity

    Federal Govt moves to avert nationwide petrol scarcity

    There were fears yesterday that vehicular queues which reappeared in the Federal Capital Territory(FCT)  might spread to major cities in the country as the withdrawal of petrol tankers by their owners entered day two today.

    Many stations which on Sunday seamlessly sold petrol, shot their gates all through yesterday, leaving motorists and other residents to crowd the few that opened for business.

    Those who had the patience to queue at a few independent stations that dispensed petrol at between N648 and  N670 per litre, spent hours waiting  while others that could not turned to black markets  where they paid N850 per litre.

    Minister of   Petroleum Resources (Oil) Heineken Lokpobiri however, met with the leadership of the tanker owners under the aegis of the  Nigerian Association of Road Transport Owners (NARTO) in his bid to prevent the situation from worsening.

    The meeting was also attended by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Chief Executive Officer, Farouk Ahmed as well as the leaders of the  Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Energy Marketers of Nigeria (MOMEN). 

    NARTO had in a letter dated February 15 notified NMDPRA, MOMEN, Department of State Services (DSS) of its intention to stop lifting petroleum products from last  Sunday because of the high cost of operation.

    Before the parley was shifted till today,  Lokpobiri informed the members of   NARTO,   IPMAN  and  MOMEN  that the issues at stake were commercial.

    He added that the  Federal Government decided to wade in to save the public the pains associated with petrol scarcity.

    Read Also: Be patient, Tinubu’s policies yielding results, Bagudu begs Nigerians

    The minister said the removal of petrol subsidy and the Petroleum Industry Act gave marketers the leverage to fix prices and bear the cost of haulage. 

    Lokpobiri said:  “It should be known that the issues have nothing to do with government.

    “It is commercial.  We as the government, have to intervene so that Nigerians will not suffer.

    “I believe that Nigerians are already going through hard times not by any of your making but as a result of the situation that we find ourselves.

    “I   thank you for waiting for several hours and for being patriotic. 

    “The engagements are continuing. We hope we are going to find a solution as soon as possible.”

    But the marketers complained that the same government capped the pump price of the petrol.

    They said  they were at a fix as they could not hike pump price.   

  • Supply hitches disrupt petrol distribution in Lagos

    Supply hitches disrupt petrol distribution in Lagos

    • We have been waiting for a week to load-IPMAN
    • We have no supply issue- NNPCL

    A looming Premium Motor Spirit (PMS) or petrol scarcity may hit the country soon if supply situation of the product by the Nigerian National Petroleum Company Limited (NNPCL) does not improve in the next two days.

    Across the Lagos, Ogun and Abuja metropolis yesterday, most filling stations, including NNPCL retail outlets, were shut to motorists. The same situation applied to independent and major marketers owned filling stations across these cities. The few that opened to the public had long queues of vehicles at their pumps; most of the stations dispensing petrol did so using only one pump, thereby aggravating the queues. All NNPCL stations in Ikeja axis including the three on Ogunnusi road between Omole roundabout and Ojodu-Berger and BOVAS were shut; same is applicable to the NNPCL stations along Alausa secretariat road. In Akute, Ogun State, of the two NNPCL stations, only one was opened to motorists although it was yet to dispense petrol to the long queue as at 3pm yesterday.

    Findings by The Nation showed that the build up to the appearance of the queues yesterday has been on in the last one week. According to some NNPCL station managers who spoke in confidence to this reporter, the shortage of petrol supply to their respective stations is a direct result of the supply pressure on NNPCL. They explained that because the NNPCL  offers the most friendly ex depot price of the product, most, if not all marketers, now depend of the firm for petrol supply.

    “NNPCL sells petrol at about N550 per litre ex depot price compared to other private depots that sell at N620 per litre. So it makes more economic and business sense for other dealers to buy from NNPCL instead of from private depots because of the price differential.  Unfortunately, this has now put NNPCL under pressure which has made it unable to meet up. For two weeks now, the firm has not been able to meet supply demands of marketers, including those of us under its franchise. My station has been waiting for one week now and we are yet to load at the NNPCL depot even though we are under its franchise,” the NNPCL station manager explained, adding that “I am sure things will ease up soon.”

    Confirming the situation, the National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maiganda, in a telephone chat with this reporter, explained loading disruption at the NNPCL depots across the country has been a major challenge in the past two weeks for his members.

    Maigandi, worried about the effect of the situation, warned that the nation may face scarcity problems if the situation does not improve anytime soon. He appealed for urgent resolution of the supply glitch because his members do not want such to happen.

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    “The queue situation we are witnessing now is pertaining to loading issues. Most of our (IPMAN) trucks are there in Lagos and we are not getting opportunity to load. So the problem has to do with supply and loading. We are yet to hear anything from the NNPCL on this even as IPMAN, we are not getting our allocation from NNPCL in spite of our pact with them. We cannot go to other private depots because their prices are too high and it doesn’t benefit us to buy from them because how much are we going to sell that to the public.

    “We are expecting explanations from NNPCL on why we cannot load. Although they are not talking to us at the moment, but the situation boils down to supply issues. Our fear is that we don’t want scarcity of petrol, it does no one any good, that is why we as IPMAN are working frantically to get over this; but if the supply does not improve from NNPCL, then there is nothing we can do meaning there will be scarcity, except Nigerians are willing to buy at a higher cost if we resort to get supply from the other depots whose cost is higher (N620 per litre) than that of NNPCL,” Maigandi said.

    When contacted on the development, the General Manager, Corporate Communications, NNPCL, Femi Soneye, told The Nation that there is no supply glitch or issues arising from his firm as the Company has more than enough product to serve the market.

    “We don’t have any supply issue; we have products available. The tightness you are seeing is that there are price differentials and this is not peculiar to us alone; it happens all over the world. So folks go to wherever they can get it cheaper. So we have products available and there are no issues at all,” he explained.

    Soneye however requested for the list of filling stations shut from this reporter, promising to revert with information on the situation. However, as at press time he was yet to revert as promised.

  • Petrol under dispensing: A regulatory failure?

    Petrol under dispensing: A regulatory failure?

    Deploying simple tactics of distraction, including illegal adjustments of meters, among others, filling stations across the country have continued to shortchange motorists at the fuel pumps. And as consumers complain, these operators smile to the bank, albeit, from illegal earnings. Sadly, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) appears to have turned a blind eye to this, allowing the extortion to flourish, MUYIWA LUCAS, JOHN OFIEKHUENA and MIKE ODIEGWU report.

    It is an age-long act – an act of shortchanging motorists at the fuel pumps. Petrol attendants, relying on old tactics and, in some cases, in connivance with their station managers, have made victims of motorists who buy fuel from their stations. This has introduced an unsavoury twist to the prevailing high cost of petrol in the country.

    To the inexperienced, the unsolicited friendly jokes and pleasantries put up by most filling station attendants depicts courtesy, but for the initiated, such pleasantries are nothing but  tactics meant to divert the customer’s attention from the fuel dispensing meter, aimed at dispensing less fuel than the unsuspecting customer would pay for.This, in addition to outright adjustment of the meter to dispense less fuel than is displayed on it, is a practice that has been going on for long. 

    Although many may have overlooked this incident in the past, the biting reality of the removal of petrol subsidy on Nigerians have  reawakened their consciousness to this nefarious act.

    “I have had ugly experiences in some of these petrol stations. I stopped buying fuel in some of them.The worst are these filling stations, whose prices are lower. They make up by seriously adjusting their meters to dispense lesser quantity at the same price of the actual quantity it should be,” Chris Adol, a motorist and resident of Port Harcourt, the Rivers State capital, told The Nation.

    According to Adol, most filling stations are deep in the act of selling below the standard gauge, making it almost impossible to pay for 10 litres of petrol and getting same quantity paid for in your tank at petrol stations.

    Although some consumers admitted that the rate of shortchanging has declined with the phasing out of subsidy, there were other respondents, who narrate to The Nation their ordeal at some retail outlets.

    In Abuja, it is a two-sided situation. Customers, including those patronising the Nigerian National Petroleum Company Limited (NNPCL) retail outlets, complained that the filling stations were under dispensing the product to them through adjusted meters.

    While a motorist, who simply identified himself as Sufianu, said most of the filling stations he had visited in the metropolis sell accurate litres, a taxi driver, who gave his name as Mubarak,  narrated an ordeal at different retail outlets in the city. “Most of the petrol stations between Deidei and Airport Road hardly dispense the full quantity,” he said.

    If a motorist at NNPCL, Arab Road, Kubwa, identified as Louis, had his way, perhaps he would have changed the name of NNPCL retail outlets in the axis to “black marketer.” He noted that he has battled with the petrol pump attendants over the under-dispensing of petrol at different times.

    His words: “Soon after the subsidy was removed, I suspected that the  measurement was not full. “Thereafter, I went there with a container to test them and discovered that their pumps were adjusted. After trying them for several times and realised they have adjusted their pumps, I now avoid the filling station, which unfortunately, I should be patronising because of its proximity to my house.”

    Further investigations indicated that petrol attendants are not alone in this shady business. They commit the heinous crime in connivance with their station managers and owners. This, according to investigation, explains why many attendants who have been caught engaging in such sharp practices express no remorse and still manage to retain their jobs.  The situation leaves a victim helpless because their superiors would rather plead with a customer than fire an errant attendant.

    “How would the manager of a filling station punish an errant attendant who knows that even the owner of the filling station has tampered with the reading of the dispensing machines?” asked Sola Oguniyi, the manager of a mega filling station in Ogun State.

    The deeds of errant filling station attendants have left bitter tastes in the mouths of many motorists. While a few muster the courage to challenge such attendants, others simply grumble and carry on without challenging them. But it is believed that the trend has caused unnecessary friction between many private car owners and their drivers, as the former often think that their drivers are the ones trying to play smart, especially prior to the subsidy removal regime.

    A mechanical engineer, Olukayode Sobowale, explained that petrol stations adjust their pumps to reduce their loss. According to him, because petrol is highly inflammable, it vapourises very fast, a loss for the business owner. This, he said, is why sometimes there is always a disagreement between a tanker driver after discharging its content into the storage of a filling station and it is found that what was loaded at the depot that the tanker driver signed for is not the same volume as what he discharges.  

    Sobowale explains: “There are losses to vapour because of the inflammable nature of petrol and someone has to pay for it. Besides, the long the product stays in the storage of a filling station, the more loss it incurs to vapourisation. This accounts for why meters are usually adjusted not to read the exact quantity. In most filling stations the best you can get from them is between 0.65 and 0.85 litres. Also, most filling stations, especially, independent marketers, tend to manipulate their dispensing pumps to discharge air and petrol together. This is done by the in-house engineer to distort the regular workings of the pump so that they can make extra money.

    “The technique is simple: adjust the hook of the pump and slack the spring or lever inside the pump, and educate the attendants on how to handle the pump so that the public will not suspect any foul play. That is the reason behind some stations dedicating some pumps to vehicles and others to jerry cans, because it is easier to detect the anomaly when you buy in a keg.”

    Another engineer, Olufemi Adebola, agreed that manipulating the fuel pump to the advantage of the fuel dealers is very possible.

    Adebola explained: “Yes, it is possible to adjust the meter calibration for a fuel dispenser at a filling station. The principle is quite easy for a technical person. You see, the principle of flow of fuel through the pump has a direct corresponding effect on the turning of the meter. The moving wheels can be re-calibrated without an individual buying fuel noticing it. This can be likened to the old meter used by PHCN where individuals can actually adjust the meter flow relative to the volume of electricity consumed.

    “Another instance where fuel attendants’ cheat individuals is when they operate the distraction tactics.The meter attendant might decide not to rub off the previous sales, especially if he had just made a marginal sale to, say an okada (motor cycle) rider or a 10-litre fuel in a keg. They go ahead to pump the fuel in your car after you have been distracted.”

    Operators react

    However, Sobowale’s submission was refuted by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which defended that its members might no longer have the need to under-dispense petrol because there is no pump price ceiling.

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    The association’s National President, Alhaji Abubakar Maigandi, said since the independent marketers are at the liberty to sell the product at various rates, the marketers would prefer hiking their rates than under-dispensing the product.

    His words: “All I know is that it is very difficult for independent petroleum marketers to under dispense. This is because the price is not restricted. You can see some filling stations are selling at the rate of N620, N640 and above per litre. That difference will not make any marketer to under dispense the product, especially the independent marketers.”

    Similarly, the IPMAN National Secretary Chief John Okeocha, in a chat with The Nation, noted that under – dispensing of PMS attracts a penalty. He called on the NMDPRA to investigate and bring the perpetrators to book. He added that the organisation will always abhor such sharp practices since it is fraudulent and reduces patronage.

    His words: “The issue is that there is a penalty for under-dispensing. NMDPRA has a duty to investigate and know those who are doing foul business and call them to order. “Nobody, no group, no organisation can support irregularities in their transactions.

    “Anybody who is doing under dispensing is going against the law. Two, he is reducing his customership, he is into fraud. Nobody can support this kind of thing. So, the law enforcement agency has the right to discipline anybody who is defrauding the public.”

    Oversight failure

    But consumers are of the opinion that the regulator, the NMDPRA, is slumbering in this aspect. Until the scrapping of the Department of Petroleum Resources (DPR), motorists contended that the sharp practices by filling stations, though existed, but never was it at the present level. “I can remember that DPR used to supervise the activities of these petrol stations.That supervision and monitoring unit of the Department checked these practices. But after the scrapping of DPR, no authority is monitoring and supervising these stations,” Adol regretted.

    Adol’s position that no regulator has the authority to monitor and ensure that filling stations comply to standards and dispense accurate quantity to consumers may not be faulted given that the regulator saddled with this responsibility – the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) – seems to either be overwhelmed with other responsibilities such that it cannot pay attention to this, or that it has  failed in its duties, or has become a lame-duck regulator.

    At a major marketer’s filling station along Ojodu-Berger axis, in Lagos, last December, this reporter, upon noticing that petrol dispensed to him in a jerrycan did not equate the quantity it should be, threatened to report to the regulator. The Nation was, however, taken aback when the petrol attendant said: “Oga, don’t waste your time; you would only have helped lined their private pockets because their money is not more than N1 million when they come here and that is even if they come and it’s people like you that we will still recover the money we give them from.”

    For over a month, efforts to get a response from the NMDPRA has been futile as a code of silence has enveloped the Authority on the enquiries sent by The Nation. In fact, it is now easier for a camel to pass through the eye of a needle than getting clarifications on issues at the NMDPRA since the retirement of its former General Manager, Corporate Communications, Apollo  Kimichi.

    The most senior officer in the corporate communications unit, Seiyefa Osanebi, whom The Nation approached for response since last December, simply said: “The concerned directors were observing their Christmas and Year holiday.” Contacted again last Thursday, Osanebi said: “The directors were yet to provide me the information on the matter.”

    Another motorist, Azomdu Bassey, recalled that the Nigeria Security and Civil Defence Corps (NSCDC) used to monitor petrol stations to ensure their compliance with regulatory standard.

    Bassey said: “At least, when NSCDC discharged that function, it helped consumers to a large extent. But with the scrapping of DPR and the inaction of NSCDC, consumers are at mercy of petroleum dealers.”

    Bassey and Chris urged the Federal Government to establish an independent taskforce to check the sharp practices of petrol stations. “I suggest the establishment of Petrol Stations Monitoring Task Force by the Federal Government to protect consumer interest, especially in view of the high cost of fuel per litre,” Chris said.

    For now, the filling stations and their attendants enjoy a free reign of exploiting the public, who have been left at their mercy.

  • NMDPRA, NNPC conceal petrol consumption volume figure

    NMDPRA, NNPC conceal petrol consumption volume figure

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which the Petroleum Industry Act (PIA) mandates to oversee the operation of the industry and the Nigerian National Petroleum Company Limited (NNPCL) that is the sole importer and supplier of the product have kept the information on consumption volumes to their chests.

    Since its former General Manager, Apollo  Kimichi retired, no one is ready to speak for the Authority.

    The most senior officer in the unit, Seiyefa Osanebi, whom The Nation asked for the data since on 23rd December, 2023, said the concerned directors were observing their Christmas and Year holiday.

    She delayed the report till yesterday (Thursday) that the directors were yet to provide her the information.

    On the other hand, the NNPCL Chief Communications Officer, Mr. Olufemi Soneye ignored The Nation’s phone calls and WhatsApp messages that sought the information from the state owned oil firm.

    While both the regulator and the operators sit on the industry information, private investors in the industry grope in the dark for the data to no avail.

    The question has become germane as Nigerians are weighing their relief from removal of petrol subsidy.

    Besides, the people are eager to ascertain the figure for planning purposes.

    Since importation of the product is import dependent, Nigerians want to know how much forex they have saved from the removal of subsidy. They also want to know to what extent smugglers have given up on the illicit trade of the product. The figure will also show the degree of   lifestyle change after the exit from the subsidy.

    It is however unbelievable and unfortunate that key players in the downstream industry cannot state the volume of petrol they distribute daily.

    For instance, the Independent Petroleum Marketers Association of Nigeria (IPMAN) National President, Alhaji Abubakar Maigandi and the National Secretary, Chief John Okeocha, whom The Nation asked the question simply refered our correspondent to the NMDPRA and NNPCL.

    According to Maigandi, “Since it is only NNPC that is distributing this product, they are the only people who know the consumption rate.

    We only know the consumption of the independent petroleum marketers. We don’t know that of Major Marketers, NNPC and DAPMMAN.

    “All I know is that the consumption rate has seriously reduced.

    Asked by what per cent, he said it has reduced by 50per cent.

    “The demand for my petrol has reduced by half because of the cost. Contact the NMDPRA for the actual figure.”

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    Similarly, speaking with The Nation on phone, Okeocha could not state the average volume of petrol consumed in Nigeria daily.

    He however noted that from his retail outlets, the demand for the product has declined significantly consequent upon the removal of subsidy.

    His words: “I cannot specifically tell you how many litres Nigeria consume in a day. But the fact is that the volume of consumption has generally dropped since the partial removal of subsidy.

    “You know the product has gone higher now. You know before the removal of subsidy many West African countries used to benefit from Nigeria because many products were leaving the country to Cameroun and many other regional countries.

    “But the removal of subsidy or partial subsidy the product has gone high and the trafficking of petrol has grossly reduced. So the level of consumption has come down.”

    On the refineries, the NMDPRA also refused to provide information on how many modular refineries are producing in the country.

    It also denied The Nation information on the total volume of crude oil being supplied to the refineries.

    The Authority also failed to provide information on how many litres of petrol the refineries can produce.