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Tag: PPPRA

  • NNPC: we’re owing marketers

    NNPC: we’re owing marketers

    Following the Federal Government’s intervention, Petroleum Product Pricing Regulatory Agency (PPPRA) Executive Secretary Farouk Ahmed yesterday said the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, had approved that the Sovereign Debt Notes (SDN) be payable on March 30 to the oil marketers.

    The Group Managing Director,  Nigerian National Petroleum Corporation (NNPC), Dr. Joseph Dawha,  said the Pipeline Products Marketing Company (PPMC) promised that there would be normal supply of products in Abuja and its environs today.

    With him were Chief  Executive Officers (CEOs) of the corporation’s  subsidiaries  during an inspection of petrol stations opposite the NNPC  towers in Abuja.

    Dawha said: “We are here to see how thing are going on, we know that there is enough supply to cover all the filling stations but I wanted to see things for myself with the NNPC and things are getting back to normal.

    ”The PPMC has told us that by tomorrow (today), there will be normal supply in Abuja environment.”

    He added that more trucks are coming from the Suleija depot and more are coming from Lagos to clear the queues as quickly as possible.Tracing the root cause of the scarcity,  Ahmed said that commercial banks’ reluctance to issue letters of credit to marketers for importation fuelled the petrol scarcity.He said the devaluation of the naira caused confusion in the banking sector that further worsened the scarcity.

    His words:  “The problem actually started with the banks who were reluctant to issue letters of credit to marketers for importation and this was compounded by the naira devaluation by the CBN and that brought some confusion into the banking sector.

    ”Ahmed said Mrs. Okonjo-Iweala had approved Sovereign Debt Notes payable on March 30 to the oil marketers.He noted that the agency is expecting about 8000 metric tonnes which is about one billion litres this month while other marketers are bringing in products this weekend.

    PPMC Managing Director Haruna Momoh said: “If we had our pipelines fully in shape, within two days, we would have had this situation cleared because our supply is much more robust, as at today. We have quite a number of vessels that have arrived over the weekend and we are expecting much more to arrive before the weekend.Regretting that the pipelines are not working, he said that the quickest, safest and most environmentally friendly and easiest way to transport petroleum products in a country that is as large as Nigeria is through the pipelines.

    Department of Petroleum Resources (DPR) Director George Osahon  said  marketers were hoarding fuel in anticipation of price increase by the Federal Government.He said that: “The issue now is people hoarding fuel so that price will go up. Over the course of time, several things will come up to enable pinpoint who is hoarding, but now, we still use the dip stick system to determine the volume of product in tanks.”

     

  • PPPRA warns marketers to sell fuel at new price

    PPPRA warns marketers to sell fuel at new price

    The Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Farouk A. Ahmed, yesterday warned oil marketers to comply with the new price regime for premium motor spirit (PMS) or petrol announced by the Petroleum Resources Minister, Mrs. Diezani Alison-Madueke.

    He said the agency and the Department of Petroleum Reources (DPR) would collaborate and ensure compliance with the new price regime so that Nigerians can fully gain from the donward price review.

    He also said the new ex-depot price of PMS is now N77.66 per litre.

    In a statement  in Abuja,  Ahmed recalled that President Goodluck Jonathan last Sunday directed the announcement of a downward review of the pump-price of PMS from N97 to N87per litre, with effect from January 19.

    According to him,  the announcement, which was made by Mrs. Allison-Madueke, is in consonance with Section 6, Clause 1, of the Nigerian Petroleum Act and was necessitated by the prevailing volatility in the international oil market and the drop in crude oil price.

    Ahmed said: “Consequent upon this announcement, the PPPRA, in exercise of its mandate of determining the pricing policy and setting benchmark prices of petroleum products, hereby further announces the new ex-depot price of PMS as N77.66 per litre.”

    “In view of the foregoing, oil marketers are hereby advised to adhere strictly to this new price regime, as the PPPRA, in conjunction with the DPR shall enforce compliance in order to ensure that consumers benefit fully from this review. In other words, any violation of the prevailing price regime, shall attract appropriate sanctions.

    “It is therefore our wish to advise Nigerians against any form of panic-buying, as there are enough products in all depots across the country.

    “We also wish to assure Nigerians that the PPPRA, in exercise of its mandate, is fully committed to ensuring adequate supply and distribution of petroleum product.”

  • No reduction in fuel pump price, says PPPRA

    No reduction in fuel pump price, says PPPRA

    The Petroleum Products Pricing Regulatory Agency (PPPRA) has said it will not reduce the pump price of premium motor spirit (PMS) or petrol from the fixed price of N97 per litre because it still subsidises the product.

    This is despite the crash in the price of crude oil in the international market to about $43 from over $100 a barrel.

    A source in the agency said   the pricing template to determine the pump price had not changed, and because national fuel consumption is still dependent on importation, the falling oil price doesn’t  affect local operation.

    The source said as at last week, the government subsidised PMS by N5 per litre, noting that the expected Open Market Price (OMP), which includes landing costs and distribution margins, was N104 per litre reflecting subsidy of N7 per litre.

    The distribution margins include the fixed overhead and other running costs from the landing of the product to the point of sale to consumers (retail outlets). This component of the pricing template took effect from February 2009. The distribution margins include retailers (N4.60 per litre), transporters margins (N2.99 per litre), dealers margin (N1.75 per litre), bridging fund (plus marine transport average) (N6.00 per litre) and administrative charge (N0.15 per litre), bringing the total to N15.49 per litre. This is added to the landing cost, which gives the expected open market price.

    When The Nation visited the PPPRA website for the daily product pricing template, the last posting was the activity of December 29 last year, which showed that the landing cost was N82.41 with distribution margins of N15.49 giving a total of N97.90. Therefore, when the retail price of N97 is subtracted from the expected open market price of N97.90, it showed that the government subsidised the product with only 90 kobo for the day. This indicated that subsidy this month increased over that of December.

    From 2010 till mid-last year, world oil prices had been fairly stable at about $110 a barrel but have fallen sharply over the past seven months to below $50 a barrel as at last week. The development has led to significant revenue shortfalls in many oil exporting countries including Nigeria.

  • Kano sues Okonjo-Iweala, PPPRA over fund deductions

    Kano sues Okonjo-Iweala, PPPRA over fund deductions

    The Kano State Government has sued the Minister of Finance, Dr. Ngozi Okonjo-Iweala and two others over their alleged refusal to provide it with information relating to deductions from its allocations and those of its local governments for the Petroleum Support Fund.

    Also listed in the case brought before the Federal High Court, Abuja, are the finance ministry and the Petroleum Product Pricing Regulatory Agency (PPPRA).

    The applicant, in a supporting affidavit to its ex-parte application, stated that its officials had written to the PPPRA on April 11 for information on the issue.

    The state further stated that respondents have been making deductions in this regard from the monies accruable to it and its local Governments, but have never disclosed the amount deducted since 2005 to date.

    The state said it had sought the information through due process, but was denied by the respondents, which informed its filing of this application brought under the Freedom of Information Act, 2011.

     

  • Non-payment of marketers caused fuel scarcity, says PPPRA

    The Executive Secretary of the Petroleum Products Pricing and Regulatory Agency (PPPRA), Mr. Ahmed Faruk, yesterday admitted that the non-payment of oil marketers caused fuel scarcity.

    Faruk, who spoke while defending the agency’s 2014 budget before the Senate Committee on Petroleum (Downstream) in Abuja, however, explained that the Nigerian National Petroleum Corporation (NNPC) and the Federal Ministry of Finance have settled outstanding debts.

    He urged Nigerians to stop the current panic buying of petrol because over nine vessels are discharging about 200million litres of fuel.

    Faruk also blamed rumours for the scarcity.

    According to him, marketers began to hoard petroleum products, following alleged moves by the Federal Government to increase the pump price of petroleum products, based on the pressures from the International Monetary Fund.

    Faruk said: “As it is today from our report, we have over nine vessels engaged in discharging products in depots across the country. From Calabar to Oghara. We have lister depot, it is supposed to be discharging for Oando.

     

    “We have Atlas Cove vessels discharging for PPMC. We have vessels discharging in Apapa. In a nutshell, we have over 200million litres being discharged by vessels.

    “So there is no need for any panic buying because we have the products. I urge the public to be calm and go about their businesses. They should not panic as the product is available.”

     

  • Why fuel is scarce, by marketers

    Why fuel is scarce, by marketers

    COntrary to claims by the National Petroleum Corporation (NNPC) that the fuel scarcity was caused by hoarding, the problem is a result of late release of import allocation to oil marketers, gap in importation and short-supply of petroleum products to filling stations, The Nation has learnt.

    It was gathered that the first quarter (Q1) import allocation released in February by the Petroleum Product Regulatory Pricing Agency (PPPRA) did not only come late, but made it difficult for major oil marketers to import products.

    An independent marketer, who pleaded for anonymity, said the inability of government to place order for the first quarter allocation early has resulted in the shortage of the petroleum products.

    “The truth is that the products are not available in Nigeria now. You can only stockpile the commodities that are at your disposal. NNPC is being economical with the truth. Instead of telling the public the true position of things as relates to fuel scarcity, they are playing around. The import allocation came late, and as such, marketers have to wait for at least two weeks to bring the products in. In between the period, there is tendency that they have run out of stocks.

    The Chairman, Major Oil Marketers Association of Nigeria (MOMON), Femi Olawore said hoarding was not responsible for the scarcity of petroleum products that pervaded the country since last Thursday, adding that the problem is beyond that.

    Olawore told The Nation that short-supply of the products has been the major problem in the country.

    He said: “It is not true that hoarding is the chief cause of the lingering fuel scarcity.

    However, we are making efforts to resolve the problems this week. NNPC is bringing the products to reduce the gap in supply and make them available to consumers. In fact, one marketer has just brought a shipload of fuel into the country. Before this week runs out, the problem would be resolve. Nigerians needs not panic as efforts are being made to proffer solution to the fuel scarcity.

    Dr Omar Ibrahim, the Acting Group General Manager (Public Affairs) in NNPC, still insisted that fuel scarcity in Lagos was artificial.

    Ibrahim said the corporation would introduce new measures to halt the “artificially-induced fuel scarcity.”

    “NNPC, in conjunction with the Department of Petroleum Resources and the Petroleum Products Pricing Regulatory Agency, will commence detailed monitoring of fuel stations in Lagos and environs,” he said.

    Ibrahim said the monitoring would also extend to other states of the federation to check the incidence of hoarding.

  • Ahmed Farouk is new PPPRA chief

    President Goodluck Jonathan on Thursday approved the appointment of Mr. Farouk A. Ahmed as Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA).

    A statement issued by the President’s Special Adviser on Media and Publicity, Dr. Reuben Abati, said Ahmed takes over from Mr. Reginald C. Stanley who is retiring from the agency after 35 years in service.

    The incoming PPPRA chief, who hails from Sokoto State, is the current Managing Director of Nidas Marine Limited, a subsidiary of the Nigerian National Petroleum Corporation.

    The statement said, “Ahmed comes to his new job at the PPPRA with over 28 years’ experience in the oil and gas industry and a sound commercial and trading background having held senior positions in the downstream sector of the oil and gas industry including Manager, Crude Oil Programming, Nominations, and Shipping and Terminals.

    “He has also served as Executive Director (Commercial), Pipelines and Products Marketing Company Limited (PPMC).

    “President Jonathan thanks the outgoing Executive Secretary of the PPPRA, Mr. Stanley for his meritorious service to the nation and wishes him well in his future endeavours.”

    The appointment takes immediate effect.

     

  • PPPRA, marketers keep mum on import allocation

    FOR marketers, mum is the word on the non-release of import allocation for the first quarter of the year by the Petroleum Products Pricing Regulatory Agency (PPPRA).

    The non-release of allocation and non-payment of over N220billion subsidy to major oil marketers has been causing concerns in the industry.

    The Chairman, Independent Petroleum Marketers Association of Nigeria (IPMAN), Southwest Zone, Comrade Olumide Ogunmade, said he had been warned not to speak on the matter. He described the matter as ‘’sensitive’’, and as such, should be handled with care.

    He said: “There is an embargo on the issue of non-release of import allocation to oil marketers and others because of their sensitive nature. I have been directed not to speak to the media on such issues.”

    PPPRA’s spokesman, Lanre Oladele, also declined to comment when contacted.

  • Oil marketers worry over delay in Q1 allocation

    Oil marketers worry over delay in Q1 allocation

    • Seek payment of N120b debts

    THE members of Major Oil Marketers Association of Nigeria (MOMAN) have expressed worry over non-release of the 2014 first quarter fuel imports allocation by the Petroleum Products Pricing Regulatory Agency (PPPRA).

    MOMAN Executive Secretary, Mr. Obafemi Olawore told reporters in Lagos yesterday that the delay could cause scarcity of fuel as no importer would import without directive from PPPRA, adding that imports from last quarter of last year were drying out.

    He said marketers had expected that the agency would have done the allocation at the end of last year considering the time it takes to book a cargo and its arrival in Nigeria. He advised that the industry should not be allowed to fall back to the era where only Products and Pipeline Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) was the only importer because it would create problem.

    He also said the government owes the major marketers N120 billion. The N120 billion, according him, is the main subsidy claims, which is N100 billion and N20 billion, which is accumulation of unpaid interests and foreign exchange differentials.

    He also appealed to the government to pay other importers because the delay in payment of their subsidies means that interests on loans obtained from banks continue to swell.

    He said: “We ended 2013 on very tall hope. Last year when we were paid our subsidy, we thought that the payment would continue. We imported products but as we speak, they (government) told us that the payments four third and fourth quarter imports subsidy claims are being processed. We hope the processing will end pretty soon, so that we get paid. We are owed third and fourth quarter subsidies reimbursement.

    “I will also want to plead on behalf of the other marketers who are still being owed subsidies with accumulated interest and foreign exchange differentials. Certainly it is not only major marketers that suffered penalty from the banks.”

    He added: “The main claims, which are subsidies for third and fourth quarters that are due for payments. Also at the closing of 2013, it was expected that first quarter 2014 import allocation should have been released knowing very well that it takes some weeks to book for a cargo and its arrival on Nigerian waters. First month of first quarter has almost ended which means that whatever we are getting is fallout from quarter four of last year.

    “I can say that non release of 2014 quarter one allocation is making us uncomfortable. Our view therefore is that it should be released immediately before previous imports dry out.”

  • NewsDirect to honour Aregbesola, oil chiefs

    NewsDirect to honour Aregbesola, oil chiefs

    Osun State Governor Rauf Aregbesola and the Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA), Mr Reginald Stanley are among those to be honoured by Nigerian NewsDirect during the paper’s third anniversary celebrations on December 12.

    A statement by the publisher, Sam Ibiyemi, said Aregbesola would receive the Best Governor of the Year awards on infrastructure development and education; Stanley, the Best Regulator of the Year awards. Others are the Managing Director of Omatek Computers, Mrs Florence Seriki, Best Female Entrepreneur of the Year, and Managing Director of Flying Doctors Dr Ola Orekunrin Outstanding Female CEO.

    In the corporate award category, the paper will honour OilServ Limited, Seplat Petroleum, First Bank, Babcock University and NIPCO Plc.

    The ceremony will feature presentation of papers on “Enabling Environment, infrastructure development, funding and capacity building”.

    The guest lecturers are the Group Executive Director of the Nigerian National Petroleum Corporation, Mr Abiye Membere and Osun State Commissioner for Finance Dr Wale Bolorunduro.