The Nation Newspaper

Tag: scarce

  • Why lower naira notes are scarce, by CBN

    The Central Bank of Nigeria (CBN) yesterday blamed the scarcity of lower naira denominations on hoarding and sale by unscrupulous people. It said it has mapped out strategies to address the menace.

    Its Acting Director, Currency Operations Department, Mrs. Precillia Eleje, who spoke at a public sensitisation and enlightenment campaign on CBN direct intervention on lower denominations in Kurmi Market,  Kano, expressed disgust at the activities of middle men who hoard, sell and buy such currencies at the detriment of the public.

    Eleje said: “The CBN has observed inadequacy in the circulation of lower denominations bank notes and difficulties encountered by economic agents such as marketers, merchants, shopping malls, super markets among others, despite the huge volume of bank notes injected into circulation on annual basis.

    She said the apex bank recognises the important role markets play in economic transaction, stressing that that was the reason CBN approved direct disbursement of N200, N100, N50, N20, N10 and N5 denominations to market associations, merchants, shopping malls, stores, toll-gates among others in exchange for higher bills. “The disbursement would be made through the commercial banks of the identified markets associations and other identified beneficiaries and the account must be funded before any withdrawal could be made which will be delivered to them at no extra cost”.

    “In order to guide against possible abuse or diversion of these bank notes, the bank has developed a monitoring framework to provide the basis for accessing and judicious utilisation of funds disbursed,” she said.

     

  • Why kerosene, diesel are scarce, by DAPPMA

    Why kerosene, diesel are scarce, by DAPPMA

    Why  is kerosene and diesel scarce?They are scarce because of the high exchange rate, the Depot and Petroleum Products Marketers Association (DAPPMA) has said.

    In an interview, DAPPMA Executive Secretary  Mr. Olufemi Adewole said: ‘’There is shortage of foreign exchange (forex)for marketers to import petroleum products, including kerosene hence the product is scarce and expensive. The winter period also contributed to the challenge because prices of petroleum products usually rise during this period.

    “There is higher demand for petroleum products outside the country during winter. It is well known in the international oil industry that during winter there is more concentration on some particular products and it is usually very expensive to import such products.”

    He urged the Federal Government to provide adequate foreign exchange to marketers to enable them import and increase supply.

    Independent Petroleum Marketers of Nigeria (IPMAN) National Operations Controller Mr. Mike Osatuyi said IPMAN members also did n’t have access to forex to import kerosene and diesel.

    He said his colleagues relied  on the Nigeria National Petroleum Corporation (NNPC) for their supplies.

    He called on the Central Bank of Nigeria (CBN) to take a second look at its forex policy, urging the government to fully deregulate petroleum products.

    “The issue is that it is not available, and secondly, most of our refineries are not loading. Even if they load, they will be selling it at exorbitant rates to marketers. Members cannot import because of forex and besides, kerosene is not fully deregulated. Unlike diesel, kerosene and petrol are not fully deregulated,” he added.

    A litre of kerosene sells for as much as N300 per litre across the country.

    NNPC Group General Manager, Public Affairs  Mr. Ndu Ughamadu said the corporation had begun production of kerosene and diesel at Kaduna, Port Harcourt and Warri refineries.

    He said the refineries would balance the disequilibrium in demand and supply of the products being experienced in some parts of the country.

    Warri Refining and Petrochemical Company (WRPC) Managing Director Mr. Solomon Ladenegan said the plant had been doing well since its Crude Distillation Unit (CDU) was revved up few days ago.

    He said the Warri Refinery refines two million litres of kerosene and three million litres of diesel daily. ‘’We pump the products to Pipelines and Products Marketing Company (PPMC) and they have started loading out the products to depots,’’ he said.

    Port Harcourt Refining Company (PHRC) Managing Director Dr Bafred Enjugu said refinery produces three million litres of kerosene and diesel daily.

  • Why aviation fuel is scarce, by NNPC

    Why aviation fuel is scarce, by NNPC

    • ‘Airlines can’t pay’

    The scarcity of Aviation Turbine Kerosene  (ATK) has more to do with the inability of airlines to pay for the product than its alleged scacity, the Nigerian National Petroleum Corporation (NNPC) has said.

    The Corporation said the introduction of the cash-and-carry policy by marketers as a  result of the huge debts  being owed by the airlines, was the main cause of the scarcity.

    NNPC’s Group Managing Director, Dr Maikanti Baru, who spoke when the management of the Nigerian Television Authority (NTA), visited the corportaion, said NNPC has taken steps to ensure adequate supply of the product with the importation of over 45 million litres.

    He said the monetisation of natural gas was a cardinal mandate of the Corporation, and expressed its commitment to carry on with the Brass LNG and OK LNG, saying the two projects were high priority gas entities which promise to boost revenue to the Federal Government.

    NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, in a statement quoted Baru as saying: “We are still committed, to monetising our natural gas. We have the Nigerian Liquefied Natural Gas (NLNG) which is at the moment monetising about four billion standard cubic feet of gas on a daily basis (4 billion scf/d). We also have plans for Olokola LNG as well as Brass LNG.

    “We have a little challenge with market windows for these projects which we are reviewing on a monthly basis. Once the appropriate market window opens up, we will quickly get more shareholders to join us for the projects.”

    He said a meeting of Brass LNG stakeholders has been scheduled for early next year to chart the way forward for the project, adding that apart from the LNG projects, NNPC was also working on gas monetisation through aggressive enhancement of domestic gas supply for power generation and industrial use.

    Baru praised the management of NTA for its factual reportage of the corporation’s activities.

    He urged the state-run television station to help in enlighten the public on the dangers of pipeline vandalism, which long-term impact on the environment far outweighs whatever short-term gain the perpetrators may be seeking.

    Speaking earlierThe NTA Director-General, Malam Yakubu Ibn Mohammed, said the visit was in continuation of the Authority’s resolve to liaise constantly with other government agencies it collaborates with regularly and with which they share the objective of furthering the interest of the country.

    “The NNPC and NTA have come a long way. Our relationship has continued to wax stronger and stronger and it is my desire to ensure that during my stint as DG of NTA, we take this relationship to a greater height,” he said.

  • Why fuel is scarce in Kano, by DPR

    The Kano State branch of Department of Petroleum Resources (DPR), yesterday blamed the lingering fuel scarcity in the commercial city to non-attainment of efficiency level.

    At the end of an inspection tour of not fewer than eight filling stations, led by the Controller of Operations of the DPR, Alhaji Suleiman Sayyad Abubakar, the Controller maintained that for the state to achieve stable supply of petroleum products, it requires the supply of between 80 and 100 trucks daily.

    Sayyad lamented that for now, only half of this supply of petroleum products is currently been supplied but expressed optimism that the scarcity would end within the week.

    According to him, the essence of the inspection tour is to ensure that products delivered to major and independent petroleum marketers get to the end users and at the recommended pump price.

    Also, Sayyad explained that DPR embarked on the tour of filling stations in order to dispel insinuations the some petroleum marketers are hoarding the products and sell to motorists above the approved pump price.

  • ‘Why cooking gas is scarce’

    DESPITE the resolution of the crisis over payment of service charges between the Nigerian Liquifield and Natural Gas (NLNG) and the Nigerian Maritime Administration and Safety Agency (NIMASA), the scarcity of the Liquifield Petroleum Gas (LPG) also known as cooking gas still persists.

    The Nation confirmed during a visit to NIPCO and NAFGAS plants in Apapa, Lagos that operators are rationing the product among their customers because of inadequate supply.

    The development has resulted in the hike of the price of product. For instance, a 12.5-kilogramme cylinder of cooking gas goes for between N3,500 and N4,000 instead of N2,500.

    An operator attributed the problem to a problem in the shipment of the product.

    The source said vessels moving LPG from Bonny to Apapa, spend between two and three weeks, instead of two days.

    “The turnaround from Apapa to Bonny was 48 hours. Then, the vessels spent 24 hours moving and going back from Bonny to Lagos. Now, it takes three weeks for the product to arrive Lagos, making it difficult to get the product to the public in time, he said.

    The Chairman,Nigerian Liquifield Petroleum Gas Association Mr Dapo Adeshina said it would take some weeks before the situation returns to normalcy.

    He said the problem was a fallout of the crisis between NIMASA and NLNG, adding that NLNG has not adjusted to the normal schedule of shipping the product from its base to Lagos.

    “The vessels go back and forth. By the time, the vessels get back to Lagos, the plants have run out of the product. This made customers (wholesale and retail) to wait for days to get cooking gas.

    “NAFGAS is a dedicated LPG terminal. When ships berth at NASGAF, they disharge their content immediately. Unlike other terminals, ships cannot discharge gas immediately. They have to wait for ships carrying premium motor spirit, kerosene among other products.

    “When you look at the process well, you will understand that it is a bit cumbersome. This implies that it would take sometime before things get back to normal position,” he added.

    NLNG’s General Manager External Relations Dr Kudo Eresia-Eke said the organisation has increased gas supply from 150,000 metric tonnes to 250,000 metric tonnes yearly to meet domestic needs.

     

  • Why petrol is scarce in Abuja, by NNPC

    Why petrol is scarce in Abuja, by NNPC

    The Nigerian National Petroleum Corporation (NNPC) has blamed the fuel scarcity in Abuja on panic buying and hoarding.

    Acting Group General Manager, Public Affairs Division, Fidel Pepple, told the News Agency of Nigeria (NAN) yesterday that there was enough fuel for the nation.

    Pepple said the corporation through its subsidiary, Pipelines and Products Marketing Company (PPMC), had at least 30 days stock of petrol and hoped that the queues would soon thin out.

    “I want to appeal to consumers to avoid hoarding and panic buying of fuel; the NNPC through its subsidiary, the PPMC , has at least 30 days stock of the product,” he said.

    He said NNPC was working with relevant stakeholders to ensure adequate supply of the product across the country.

    “We are working hard with the relevant stakeholders to restore normalcy and we hope the queues will thin out very soon,” he added.

    According to him, the delay in the repair of the vandalised pipeline in Arepo, Ogun has led to bridging of the product across the country with trucks.

    Despite the assurances from NNPC on the availability of fuel, NAN, however, reports that the product was still scarce as evidenced by long queues in filling stations.

    The queues resurfaced on Friday, as only few filling stations were dispensing the product, while others remained closed.