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Tag: Premium Motor Spirit (PMS)

  • DPR to shut stations in Bayelsa for selling fuel N160 per liter

    The Department of Petroleum Resources (DPR) has vowed to shut down filling stations in Bayelsa State for selling Premium Motor Spirit (PMS) above N160 per liter.

    The department was disturbed that independent petroleum marketers in Yenagoa, the state capital, suddenly increased their pump price of fuel from the regulated price of N145 to N160 per liter.

    Speaking after an emergency meeting with independent marketers in the state, on Tuesday, DPR’s Head of Operations, Ibinabo Jack, derided them for the sudden increase in price.

    He said it was not justifiable as it was never supported by any regulatory body and warned that the affected stations would be closed down.

    He asked them to immediately revert to the original price of N145 per littre, or be sanctioned insisting that they had no reason to increase the price of the product.

    Read Also: FEC approves N1.4b for DPR building design

    He said: “I personally went round and discovered that all the filling stations were selling above the pump price. They were selling at the rate of N160 naira for PMS. We frown at that and condemn it. The sudden rise in pump price is not welcome by DPR.

    “DPR has not noticed any form of price increase and there is no directives for fuel pump increase. The pump price still remains at N145 per littre. From now after this briefing with the marketers, the DPR will not hesitate to impose stringent penalties upon anyone found selling above the pump price.

    “PMS at the depot as at the beginning of the week still reman N133, and so we are saying that marketers have no reason to say they have written to the authority or that they were granted approval by someone to sell above the pump price approved by the Petroleum Products Regulatory Agency (PPRA).”

    In his response, the Bayelsa state Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Erefemota Peters, said the increase was caused by hike in depot price.

    He said marketers in Bayelsa sourced products from the Warri and Port Harcourt refineries at about prices above N142.

    He said after including transport cost, there was no way the marketers in the state could sell at the government price.

     

  • Fuel price: Edo monitors filling stations to ensure compliance

    …as dealers revert to N145

    Edo State Commissioner for Minerals, Oil and Gas, Mr. Joseph Ugheoke, has commended Independent Marketers of Premium Motor Spirit (PMS) in Benin metropolis for complying with the stipulated pump price of N145 per litre.

    Ugheoke gave the commendation after the monitoring of petrol stations in Benin City, Edo State capital.

    “The monitoring team from the Ministry of Minerals, Oil and Gas was set up by the state government to enforce compliance with the approved pump price of N145 per litre for independent marketers. The team will ensure that any erring marketer will be made to face the law,” he said.

    The commissioner, who led the team on the monitoring exercise, said “across the stations visited within Benin metropolis, we found that the marketers are complying with the state government’s directive to dispense PMS to motorists at N145.00 per litre.

    “The exercise would be continuous across the state. It will be extended to marketers in Edo North and Central Senatorial districts.”

    He added that the team is also charged with the responsibility of monitoring the supply of PMS distributed to marketers in the state, adding, “Any marketer dispensing PMS above the approved pump price of N145per litre will be sanctioned as the state government will not hesitate to seal up erring stations.

    “Such marketers would be charged to court and their products sold off to customers. Government is ready to make a scapegoat of any marketer who flouts the directive.”

    Read Also: Approved PMS Price: Edo vows to ensure compliance

  • Approved PMS Price: Edo vows to ensure compliance

    Approved PMS Price: Edo vows to ensure compliance

    …commences monitoring March 11

     

    The Edo State Government has warned marketers of Premium Motor Spirit (PMS), who sell above the approved pump price of N145 per liter, that its team will commence monitoring on March 11 for enforcement exercise.

    Commissioner, Ministry of Minerals, Oil and Gas, Hon. Joseph Ugheoke, in a statement, said that relevant law enforcement agencies have been put on notice and will join the ministry’s team which will enforce the directive and seal erring stations from March 11.

    According to him, “The state government will not tolerate the dispensing of PMS above the N145 per liter approved price for independent marketers. The team of monitors will commence monitoring to ensure compliance from Monday, March 11, 2018.”

    He said, “Marketers, who fail to comply with the directive will have their stations sealed and fully prosecuted according to law. The steps of the state government became necessary to prevent the practice where some independent marketers cash in on the cut in supply of PMS to the state to hike the price of the product.”

    Ugheoke noted that supply of PMS to independent marketers across Edo State has since increased to tackle the scarcity of the product, noting, “In view of the increase in supply of PMS to marketers, the state government cannot tolerate marketers who sell the product above the approved pump price, after so much has been done to ensure steady supply of PMS to marketers in the state.”

    “Marketers of PMS are therefore enjoined, henceforth, to ensure they dispense PMS at N145 per liter. Relevant security agencies and stakeholders in the oil and gas sector are expected to comply with the notice as marketers found to be acting contrary to the directive will be treated as economic saboteurs,” he added.

    Read Also: Edo insists on N145 per litre pump price, receives 606,000 litres of PMS

  • Fuel Scarcity: Edo to clamp down on errant petrol stations 

    Fuel Scarcity: Edo to clamp down on errant petrol stations 

    As part of measures to prevent the hoarding of Premium Motor Spirit (PMS) during the yuletide, the Edo State Government has said that it would commence monitoring of marketers and petrol stations across the state from Wednesday, December 20, 2017, and will shut errant stations.

    The Commissioner for Oil, Gas & Solid Minerals, Hon. Joseph Ugheoke, gave the warning in a chat with journalists at the Government House in Benin City, Edo State capital, on Tuesday.

    “People in the state should not engage in panic buying as there is no justifiable reason for doing so. The Nigerian National Petroleum Corporation (NNPC) has assured the state government that it would supply enough products to the state to address the shortage.”

    He explained that the state government has placed a ban on the sale of PMS in jerry cans, adding that notice has been sent to managers of petrol stations not to sell PMS of more than 20 litres to buyers with jerry cans.

    “We are aware of the reduced allocation of PMS to Edo State. The shortage of PMS is not peculiar to Edo State, as other states in the country are also recording similar shortage in supply though there is no record of scarcity in some states,” the commissioner said.

    “The ministry has been reliably informed by the NNPC that the quantity of PMS supplied to Edo State will adequately serve the needs of users during the yuletide. There is no need for panic buying by motorists across the state.”

    Ugheoke said the state government through the Ministry of Oil, Gas and Solid Minerals, is putting measures in place to prevent some marketers from exploiting the people by hoarding the product to create artificial scarcity and make excessive gains to the detriment of the people.

    “The queues we have been seeing at petrol stations across the state were caused by the fears over the planned strike by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). But with the suspension of the strike on Monday, loading of petroleum products has commenced and our staff will be going round to monitor the supply and dispensing of PMS to motorists at the petrol stations,” he said.

    According to him, officials of the ministry will ensure that petrol stations that were supplied PMS, dispense the product to buyers based on the regulated price of N145 per litre and any station hoarding the product will be shut down.

  • Why petrol is scarce – IPMAN

    Why petrol is scarce – IPMAN

    The Independent Petroleum Marketers Association of Nigeria ( IPMAN ) Tuesday opened up on the true cause of the fresh scarcity of the Premium Motor Spirit (PMS) in some parts of the country.

    According to its National Vice President, Alhaji Abubakar Maigandi, who spoke with The Nation on phone said that the Nigerian National Petroleum Corporation (NNPC), said that the corporation was delaying loading the of independent marketers trucks at its depots.

    He added that the private depots that were opened to the independent marketers were selling above the official price.

    His words: “In the NNPC there serious delay in loading. Then the private depots are selling above the government stipulated rate. This has stopped most of the independent marketers not to buy it. They are selling between N141 to N145 per liter in the depots in Lagos, Port Harcourt, Calabar and Warri. This is why we are having serious challenges. If care is not taken there will be serious scarcity. Government needs to quickly intervene for the sake of the people.”

    Petrol has been scarce in the Federal Capital Territory (FCT) as most of the petrol stations are under lock and key.

    The corporation’s Group General Manager, Group Public Affairs Division, Mr.  Ndu Ughamadu has issued a statement that there is sufficient petrol and that there is no plan to hike the pump price.

  • Petrol prices to dip as Nigeria exit recession – IPMAN

    Petrol prices to dip as Nigeria exit recession – IPMAN

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), Vice National President, Alhaji Abubakar Maigandi Monday forecast that following the nation’s exit from recession, the prices of the Premium Motor Spirit (PMS) also known as petrol will dip further very soon.

    Speaking with The Nation on phone, he said that the economy will now improve for more people to buy and drive more car, which is bound to increase the turnover of some of the petrol stations and further attract more marketers to supply more and drag down the prices of petrol.

    His words: “Now that Nigeria is out of recession, more people will be able to buy cars and demand for petrol to drive them. The demand will attract petrol marketers to supply to a glut level that will further dip the pump prices.”

    The forces of demand and supply and their inherent competition have already crashed the pump prices to N139 per litre in A.A. Rano on Kubwa expressway, Abuja, N140 per litre in Shema on the same road while other marketers sell for N142.

    All the Nigerian National Petroleum Corporation (NNPC) affiliate stations have however pegged their prices at N143 per liter while other major marketers as Total and others still sell at the maximum band of N145 per liter.

    Customers have apparently abandoned those selling for N145 per litre to a matter of last alternative, especially for visitors and taxis that run out of fuel completely.

    Maigandi commended the federal government on the provision of an enabling environment that led to the interplay of the market fundamentals that crashed the pump prices.

    He also commended the government on the policies that have culminated in easy access to the petrol, adding that “it is no longer difficult to get it in any filling station.”

    Maigandi noted that selling above pump price has suddenly become history as customers no longer buy from such marketers.

    He however had his reservation concerning the manner that the NNPC market kerosene and diesel, saying that their sales are still characterized by corrupt practices.

    According to him, marketers cannot access the products without going through the middlemen that cut corners in the depots across the country.

    He lamented that the Petroleum Equalization Fund (PEF) is still owing the marketers billions of Naira as cost of bridging different products.

  • Reps summon Total over missing fuel

    Reps summon Total over missing fuel

    The House of Representatives has invited the Managing Director (MD) of Total Nigeria PLC to appear before it over a missing 35,000 metric tons of Premium Motor Spirit (PMS).

    The missing petroleum product was discovered Wednesday at the on-going investigation hearing by the ad hoc Committee on the Review of Pump Price of PMS.

    Documents tendered by the Department of Petroleum Resources (DPR), Petroleum Pricing Marketing Company (PPMC) and others exposed the missing product.

    Committee Chairman, Nnana Igbokwe said the Committee could not trace about 35,000 metric tons of the PMS under the custody of Sea Clippers Shipping Company hired by Total to carry the products.

    “The documents we have before us which were submitted by you (TOTAL) and DPR shows that 35,000 metric tons of Nigeria people’s PMS is missing, where did Nigeria National Petroleum Corporation (NNPC) ask you to deliver the product”, Igbokwe questioned.

    In his explanation, Total’s representative, Olalere Babasola pleaded for time, claiming that he was in possessuon of document to back his response to the committee’s claim.

    “I am quite convinced that we discharged the PMS because it is the NNPC that authorizes where to discharge products,” he said.

    The Committee was not impressed by Babasola’s submission, “In view of the fact that Total cannot give the committee the whereabouts of the 35,000metric tons, the MD of TOTAL is hereby summoned to appear before the committee,” Igbokwe said.

    He also expressed concern over 35 queries issued to Total, on its failure to adhere to rules of engagement on  lifting of products.

    As a result, the oil company was mandated to make available, statement of fact, electronic receipts and clearance certificate for all products lifted and discharged, in addtion to documents on its  indebtedness to the Federal government.

    The Nigerian Ports Authority (NPA) was also condemned for delay of products and cargos in sea ports leading to accumulation of demurrage that  was indirectly built into subsidy of the products by independent marketers.

    The Committee regretted the burden is ultimately transferred to Nigerians as they buy the product.

     

  • Reps want fuel sold at N70 per litre

    Reps want fuel sold at N70 per litre

    The House of Representatives on Tuesday urged the Petroleum Products Prices Regulatory Agency (PPPRA) to review the current price template for Premium Motor Spirit (PMS) with a view to reducing the price to N70.

    This followed the adoption of a motion sponsored by Rep. Abubaker Fulata titled “Urgent Need to Review the Petroleum Price Template”.

    Moving the motion, Fulata expressed dismay over the circulating rumour of a possible hike in the price of petrol in the country.

    Although the rumour was denied by the Federal Ministry of Petroleum Resources, Fulata said it was coming at a time when the nation is going through difficult times.

    According to him, the hard times are occasioned by dwindling revenues, high inflation rate, unemployment and general fall in the standard of living of many Nigerians.

    The lawmaker noted that the current template for the price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters.

    The review would also contribute to reducing the current inflationary trend in the economy.

    “I am aware that the current cost of freighting PMS stands at N109.1, Lightering expenses N4.56, Nigeria Ports Authority charges N0.84, NIMASA charges N0.22, Financing N2.51 and Jetty put charges at N0.60.

    “Storage charges N2.00, retailers margin N6.00, transport allowance N3.36, dealers margin N2.36, bridging fund N6.20 and marine transport average put at N0.15 bringing the total cost to N137.81,” he said.

    He further informed the House that the landing cost of PMS remained at N119.74, while the distribution cost and margins of marketers stood at N18.37.

    “Thus, the total of both the landing and distribution costs is N138.11, while marketers are allowed to sell the product within the range of N140 and N145 per litre.

    Fulata further noted that over 90 per cent of the current price of PMS in the country is accounted for by transport related charges at N124.34 out of N138.11.

    According to him, foreign vessels charge higher for lifting the PMS because Nigerian carriers which were supposed to lift 50 per cent of the products lack the capacity to do so.

    He faulted the NPA’s inability to dredge the ports despite collecting N0.84 for every litre of petrol thereby costing Nigerian users the sum of N4.56 for every litre of petrol they buy.

    “Bridging is supposed to be an annual event only when refineries are carrying out their turn around maintenance which should not exceed three months.

    “However, due to the fact that pipelines linking the various depots have been vandalised or in a state of disrepair, bridging has remained a permanent feature of the oil industry in Nigeria,’’ he said.

    He said that if the pipelines linking the various depots and refineries could be fixed and secured, the bridging fund could be reduced to N2.00 per litre instead of the current N6.20.

    “Also a realistic template would bring down the price of petrol to N70.04,” he added.

    The House therefore urged the NPA to dredge all harbours within a period of one year to enable ships dock in them.

    House also set up an ad-hoc committee to interface with the Federal Ministry of Petroleum Resources on the review of the price of PMS and such related matters and report back within weeks for further legislative action.

  • No petrol price increase now- NNPC GGM

    No petrol price increase now- NNPC GGM

    The Group General Manager (GGM) of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru on Tuesday ruled out possibility of imminent increase in the pump price of Premium Motor Spirit (PMS), also known as petrol.

    There are online reports suggesting that the Federal Government will soon increase the price which was increased in May from N86 to N145 per litre.

    But speaking with State House correspondents at the Presidential Villa, Abuja, Baru said that he has not received any directive for increase.

    Noting that the request for forex for importation of petrol has been met, he declared that the supply situation for fuel is the country is robust and won’t push price increase.

    He said: “I have not been directed to increase pump price, even the other price was based on recommendation from the regulated body. I’m not aware that they are planing to do any increase, you know there are several factors that necessitated that especially the issue of exchange rate that has moved and we don’t expect any serious changes.

    “So far the request for forex for importation of gasoline popularly called petrol has been met, and our own supply situation is robust.

    “We are meeting demands. We have over 1.4 billion liters on ground. So I don’t see any basis for increase.

    “However, the review could be done by the right body, you should contact PPPRA, that is the regulatory body as far as petrol pricing is concern.” He added

  • Marketers assure of decrease in pump price soon

    Marketers assure of decrease in pump price soon

    The Major Oil Marketers Association of Nigeria (MOMAN) on Tuesday assured Nigerians that pump price of Premium Motor Spirit (PMS), otherwise called petrol, will drop very soon.

    The Executive Secretary of the association, Mr Obafemi Olawore stated this while addressing newsmen in Lagos.

    According to Olawore, despite non availability of foreign exchange at official exchange rate of N197 to $1, major marketers are relying on their upstream divisions to get dollars to finance their imports.

    “I’m assuring Nigerians that pump price of petrol will soon drop as against claims that it will rise above the present band.

    “Price won’t go up as long as the Nigerian National Petroleum Corporation  (NNPC) is bringing in products.

    “Although, we are expected to source for dollars at the parallel market but the good news is that we are getting dollars from our upstream divisions.

    “Shell supports Conoil, Agip to support Oando, ExxonMobil supports Mobil Oil Nigeria, Total supports Total Nigeria, MRS and Forte get support from NNPC,” he said.

    The executive secretary, however, said that further that full deregulation was the answer to the challenges fuel scarcity in Nigeria.
    “The solution to fuel scarcity is full deregulation.

    “If there is no policy reversal, marketers will bring in products.

    “The situation will encourage us to bring in more investment. We have invested in meters presently to ensure adequate metering.

    “Others are doing their calculations in how to bring in investment in refineries and once we begin to refine domestically, it means we have attained full deregulation,” he said.

    He denied the allegations that marketers were making abnormal profit because they were selling old stock.

    Olawoore said that announcement of new price would have been made on May 7, but it was discovered that marketers had plenty stock and would have made abnormal profit.

    “So, the government waited for the majority of our members to sell most of their old stocks before announcing new pump price on May 11.

    “We have not been making much profit like that, what we have been doing is to continue in business since our fixed costs are always being recovered,” he said.