The Director, Department of Petroleum Resources (DPR), Mr. Mordecai Ladan, has warned petroleum products depots and owners of filling stations across the country against diversion of the products.
Ladan, in a statement on Monday in Abuja, also warned oil marketers against hoarding, pump manipulation and selling the products above approved prices.
The statement came against the backdrop of the purported resurgence of fuel scarcity in parts of the country.
He warned that any marketer found to be under-dispensing or selling products above regulated prices would be suspended for a minimum of two months.
“Any Marketer caught diverting or hoarding the products for profiteering shall be sanctioned with a fine of N2 million and will have his operating license revoked.
“Such operator also risk prosecution for national economic sabotage,” he said.
The director also stated that DPR was collaborating with Petroleum Equalisation Fund and Petroleum Products Pricing Regulatory Agency to ensure that defaulters were sanctioned accordingly.
It stated that all DPR offices nationwide had been directed to step up monitoring activities and ensure full compliance by marketers.
There is petrol sarcity in Ilorin, the Kwara State capital, and its environs.
It is the first since President Muhammadu Buhari assumed office in May.
Long queues were common yesterday at many filling stations in Ilorin and nearby towns.
Residents, especially motorists, did not see the scarcity coming.
It was gathered that a new price suggested by private fuel tank owners in Lagos caused the scarcity.
Some motorists, who were caught unawares, were stranded.
Most of them decried the scarcity, urging the government to ensure that it does not degenerate into another crisis.
Many commuters were stranded because only few commercial vehicles were on the roads.
Some independent marketers said they had been asked to pay extra N3 per litre by depot owners in Lagos before their trucks would be loaded.
They said acceding to their demand would jeopardise their business.
One of the independent marketers, who spoke in confidence, said: “I sent some of my trucks to Lagos on Tuesday to buy at the usual rate of N81 per litre. We would add another N5 to that for transportation from Lagos to Ilorin so that the landing cost would be N86 per litre. We can sell at N87 and collect the Petroleum Equalisation Fund (PEF). But we were told yesterday to add extra N3 per litre. I told my drivers to wait.
“We only began to notice it on Wednesday evening because there was not supposed to be any scarcity at all. I think those people just want to frustrate government’s efforts because there is no way we can claim anything, if we agree to buy from them at that rate.
The Department of Petroleum Department (DPR) might have commenced investigation on erring petroleum products marketers following the subsisting national energy crisis and its effects on Nigerians.
A source close to DPR management told the News Agency of Nigeria (NAN) in Lagos that the orgnisation was only being proactive in the face of the national energy crisis.
The source said that DPR was aware of the illegal activities of petroleum marketers, especially the sale of products above government approved price.
He said that the department was currently investigating the source of higher pricing of products, especially the depots with a view of getting the actual price of loading of various products.
“We have received information on petrol stations selling above the pump price of N87 per litre but we do not want to commence the sealing of stations without getting the actual price from the depots.
“We do not want to add to the problem of scarcity by sealing up the petrol station at this period.
“If you go around, you will see Nigerians carrying jerry cans looking for the products.
“If we start to seal petrol station without confirming the loading price from depots, we are also punishing the people as well as the marketers.
“We have commenced investigation on the loading price from the depots, when we are through with depot then we will start to work on the petrol stations selling above the price.
“All the same, we have continued to warn those selling above the selling government approved price to desist from the action.
“Any of the station caught selling above the approved price will have its license revoked and the stations will be sealed,” he said
The lingering fuel scarcity may continue till next month, considering marketers’ insistence on being paid the balance of over N200billion subsidy arrears owed them by the Federal Government.
It was learnt that the situation is getting worse because the Nigerian National Petroleum Corporation (NNPC) can only meet 50 per cent of the national demand and the oil marketers that supply the remaining 50 per cent have refused to import since last month.
The Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation (NNPC), Mr. Ohi Alegbe, said the Corporation has 25 days stock but noted that the scarcity got worse because of the workers’ strike.
Alegbe said: “As we speak, we have 25 days sufficiency. Although we (NNPC) import only 50 per cent of national demand, the scarcity is not supposed to be this severe. The situation was worsened by the strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG). As a result of this strike, the Petroleum Tanker Drivers (PTDs) are not lifting fuel. Also, members of the Major Oil Marketers Association of Nigeria (MOMAN) have not imported a litre of fuel for a long time now.
“We have been on negotiation with the striking workers since Friday and I hope the issue will be resolved before midnight today (Sunday) and the strike will be called off. We explained to them (striking workers) that this time is very wrong to embark on such strike because Nigerians suffer the impact and it is not good for a smooth transition expected in less than a week. We directed retail outlets to sell but because the tanker drivers were not lifting, they didn’t have product to sell. The supply situation will certainly improve substantially this week.”
Operators in the retail shopping industry lament that fuel scarcity is affecting their businesses as sales and traffic to these places have been low, report TONIA ‘DIYAN, OCHU OHUNENE LATIFAH and EKEOWA PATIENCE.
This last week has seen shopping activities almost paralysed at shopping places within the Lagos metropolis. No thanks to the present scarcity of the petroleum product which has been out of stock since last week. Operators of shopping places say they have been witnessing low sales because of the frustrating situation and customers do not patronise them like before.
Managements of malls visited have shown dissatisfaction with the present fuel situation , describing the situation as highly unacceptable and very disappointing. They said it is a major setback to economic activities in the country and have advised the government to do everything necessary to see that the situation is normalised as soon as possible.
The Nation Shopping visited some shopping places to observe how the present fuel scarcity is affecting sales. At Ikeja City Mall in Alausa, Ikeja, Manager of Poise store, Mrs Temitope Olaopa, said the present fuel situation has affected sales for her and her colleagues negatively. “With the present scarcity of fuel which has been ongoing since last week, we are recording very low sales. The situation is worse than the election period when we had to work half day. This time around, our customers are not showing up the whole day” she said
Like Olaopa, Julie Akum, another store owner at the Ikeja mall laments last weekend and Workers Day also were bad days for them because of the fuel scarcity situation. “We had thought sales would pick at the weekend and on May Day, but nothing changed. We hardly made sales. Car owners preferred to reserve the fuel in their cars to go to their work places during the week rather than visit the mall, they argue that they might not find fuel to buy”
The story is not different with Ms Ayodele Abimbola, a sales representative at Party Perfect, a store that sells party items and gifts. “With the increase in the price of the little fuel in circulation and also the increase in the price of transportation, it has really made it difficult for people to make it to the Mall to shop. Like me, the price of transportation from my home to the shop has been doubled .I used to pay N70 per trip, now it is N150.”
At the Apapa mall in Park Lane, Apapa, Lagos, the scarcity has forced store owners to cut down prices of items at least by 10 percent, they say they have realised that foot traffic to the mall has dropped drastically, and they appeal to the government to address the problem as soon as possible so that they will be left with the bad road and traffic jam they have been battling for long. According to them, they have lost enough customers already; and plead that the government doesn’t inflict more pains on them.
A store representative with PEP store, Cassandra Okafor said, the fuel scarcity situation has become a bone in the neck and it is affecting everybody in the country not only those at the mall “ One thing we have done since the fuel scarcity began is to count our losses. When our customers are unable to come in to shop, we stand the risk of losing and not being able to pay our workers. We are hoping that the situation will be normalised before the end of this week.”
The owner of Essenza, a perfume store, Malarki Adoga, said the scarcity of fuel has affected his business badly “I find it is very difficult to come to my shop on a daily basis since the fuel scarcity began. I am displeased with the present situation in the country. So far, we have lost many customers, those we call on phone will complain that they are tired having spent the whole day at the filling station queuing to buy fuel”
A sales representative at Accessories 2 die 4, a store which stocks all kinds of ladies accessories, said she didn’t know if the fuel scarcity affected sales at her shop “ I don’t know if the present fuel situation has affected business here, since we do not use petrol for anything in the shop but one thing for sure is that, fuel scarcity comes with scarcity of transportation and if there is no means of transportation, how will our customers make it to the Mall.”
Few shoppers seen at Adeniran Ogunsanya and leisure mall said they live around the mall and could afford to take a walk to the mall for their shopping. Miss Ifunaya Clement said she was at the mall because she lives few streets away from both malls who are neighbours. “Ordinarily, I will take a bus or tricycle to the mall, but I decided to ignore the high fare these days and take a walk. It is a stone throw”.
Another shopper, Mr Samuel Ibikunle said “I have been finding it difficult to get fuel for my car because filling stations don’t have and those that have are usually crowded. The only alternative for me is the black market and it is very expensive that is why I cannot waste my fuel to the mall, except it is very necessary like it is now that I am at this mall for official purpose, I am here to attend a meeting with my boss” he said.
• Inside view of a scanty mall
Mrs Abigel Kehinde also a shopper, think people will be affected especially, those with their private cars and the motorists. She said: “if these people are affected, the Mall and other shopping places will also be affected because when there is no transport then people won’t be able to come to the Mall.”
Some shoppers who were at Apapa mall said they stay close to the mall and can afford to stroll down, that is why they can still be found in the mall. Andrew Omoh said he didn’t come from a far place, “I live nearby, and the only people I think it will affect more are those coming from a distance and those with private cars who won’t be able to get fuel for their vehicles. But for few shoppers who came from a distance, the fuel scarcity has done them more harm than good.
Tayo Oshoba visited the mall from Oshodi, he lamented on how difficult it is to get to the mall, “Ordinarily, getting to Apapa mall is hell because of the bad road. Now the burden has increased. Before now I spent about N300 from my house. Today, I have spent N600 after waiting at the bus stop for a longer period
For Thomas Omokaro, “I have packed my car because i can’t surfer to buy fuel at a high price and end up wasting it in traffic. For now, I am thinking of holding on on my shopping here for the main time, I will rather go to a nearby open market to get the things I need until this frustrating scenario is over’’.
THE citizens may need to get ready for a protracted fuel scarcity as the oil marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) have refused to shift ground on their decision not to import fuel.
They requested the Federal Government to pay 70-80 per cent of the N354 billion subsidy debt owed them.
The Ministry of Finance, which pays subsidy on fuel imports made by oil marketers, however, described the “no pay, no import” stance of the marketers as unfortunate and unpatriotic, “considering the efforts of the Federal Government to ensure the debt is cleared”.
The Executive Secretary of MOMAN, Mr. Obafemi Thomas Olawore, in an interview with The Nation, asked the ministry when it has become a crime for a creditor to ask for his money.
He said: “Nobody is denying that they (Ministry of Finance) are paying us. They told us they have spoken with the banks, assuring us the banks will help us open letters of credit to be able to import. The banks refused to give us letters of credit despite appeals made by the Governor of Central Bank of Nigeria (CBN). Even the posted-dated instrument of N98 billion, which matures tomorrow (today), the banks refused it; insisting until it matures.”
Olawore said the marketers have not done anything wrong or unpatriotic by asking for their money.
He added: “The government owes us. Therefore, we are unable to import. They owe us N354 billion and we owe our contractors (transporters) N20 billion. The transporters said they will not lift and bridge fuel across the country until they are paid. Because of the transporters’ strike, the little stock we have is not lifted and distributed.
“We are of the view that the government has to pay substantial part of the debt – at least 70-80 per cent – to encourage us. Even if they (government) pay the N98 billion post-dated instrument and the N56 billion they promised tomorrow (today), it will amount to N154 billion, leaving N200 billion, which is still huge. If the government can pay us N254 billion at least, leaving an outstanding N100 billion, we will flood the market with product.”
Olawore denied whether the removal of subsidy by the National Assembly was partly responsible for their refusal to import fuel for fear of non-reimbursement.
He stated that there would always be cushion on importation, adding that the National Assembly has done its own job.
“But the Executive arm of the government has not told us about that and until they communicate us on stoppage of subsidy payment, we will continue to import,” Olawore added.
But, the Special Assistant (Media) to the Minister of Finance and Coordinating Minister of the Economy, Mr. Paul Nwabuikwu, who spoke to The Nation, expressed dissatisfaction over the way the oil marketers were going about the subsidy debt.
Nwabuikwu said: “The public comments by MOMAN on the issue of payment for fuel imports are deeply disappointing because government, in spite of the well known resource constraints, has made payments to marketers a priority. For instance, oil marketers have been paid N31 billion for interest differentials. They have also been given an IOU (I Owe You) of N100 billion backed by Sovereign Debt Notes which will be honoured end of April (today). Other payments are also being prioritised.
“Let us not forget that in December marketers were paid over N300 billion in two installments. So, the false impression that government doesn’t care, which they (marketers) are giving in spite of many meetings, reassurances and agreements reached with the Coordinating Minister of the Economy and other government representatives is really unfortunate.”
Marketers have increased the price of Liquefied Petroleum Gas (LPG) known as cooking because of its scarcity, The Nation has learnt.
LPG marketers, including NIPCO, Total, Forte Oil, Nigerian National Petroleum Corporation (NNPC), among others, have not only increased the price of the product but are rationalising its supply.
The problem, it was gathered, was caused by hitches in the distribution among stakeholders in the value chain. A source in one of the oil marketing firms said the scarcity was caused by the usage of LPG distribution channels for other purposes than what they were built for.
The sources said the government directed that two out of the three distribution channels be used to supply Premium Motor Spirit (PMS) to make fuel available in the country.
The President, Liquifield Petroleum Gas Association of Nigeria (LPGAN), Dapo Adesina corroborated the source saying the scarcity was caused by the usage of LPG terminals for other purposes.
He said NIPCO terminal, Products and Pipeline Marketing Company (PPMC) terminal and NAFGAS terminal are the three approved by the Federal Government for the supply of LPG in Lagos.
He said NAFGAS terminal is the only one supplying LPG to the bulk and retail sellers, while NIPCO and PPMC terminals are being used to supply petrol since the election was held.
He said the development has resulted in uneven distribution and scarcity of cooking gas in the country.
He said: “The Nigeria Liquefied Natural Gas (NLNG) is not the cause of the scarcity of the product as people were made to understand. NLNG supplies LPG seamlessly through vessels that are coming from its base in Port Harcourt, Rivers State, to Lagos. The failure to use the three terminals to distribute LPG is the cause of the scarcity. Imagine a situation where one out three terminals was used to get cooking gas to the consumers. Definitely few people would access LPG which would ultimately lead to its scarcity.
“At Creek Road, Apapa, Lagos, there is a gridlock. The traffic was caused by tankers waiting to load LPG. Many trucks have waited for days to get the product but to no avail. The scarcity of cooking gas dates back to the electioneering period and we are still experiencing it,” he said.
He said the solution to the problem lies in the hand of the Federal Government because it regulates the oil and gas sector.
The price of 12.5 kg cylinder of cooking gas has increased from N2,800 to N3,200 depending on the area. Besides, many refilling outlets do not have the product while those that have sell at high prices.
A gas seller, Joshua Oliha, told The Nation that the market was dull because there was no gas to sell to customers. According to him, he struggles with his colleagues to get the product at a high price, a development that has forced them to increase the price.
He said: “The gas sellers come together to deliberate on developments in the sub-sector. We have resolved to wait till post-election period to see whether the problems would be solved. We hope that the government would ensure that LPG is widely distributed to end the scarcity. Customers would be buying cooking gas at high price until the government does the right thing about the issue,” he said.
Fuel queues grew longer in many cities at the weekend — no thanks to thedisagreement over subsidy between the government and marketers.
It was gathered that because marketers have reduced their import, the scarcity may persist.
But the Nigerian National Petroleum Corporation (NNPC) plans to triple its supplies to mitigate the shortfall.
Many filling stations in major cities, including Lagos and Abuja, at the weekend either did not sell the product or sold above the N87 price. Many sold at between N97 and N110 per litre.
There were queues at filling stations. The situation got worse in Abuja yesterday, with many stations under lock and key.
The few that opened to customers were besieged by residents. Queues extended to the roads.
Besides, the petrol stations which operated yesterday only engaged in skeletal services, selling with few pumps.
At 3.00pm in Kubwa, the Nigerian National Petroleum Corporation (NNPC) and Oando stations were shut.
The NIPCO opposite them was overwhelmed by customers.
According to some of the motorists, who were sweating in the scoching sun, they had queued up for petrol as early as 6.00am. It sold petrol for N87.
Oando at Dutse Junction, also on the Kubwa expressway, had a long queue.
There were two queues stretching over a kilometre to the NNPC super mega station on the same expressway.
Group General Manager, Group Public Affairs Division, NNPC, Mr. Ohi Alegbe, at the weekend cautioned the public to desist from panic buying.
In a statement, the corporation said it was working with all downstream industry stakeholders.
The statement said: “ The management of the NNPC has called on members of the public not to engage in panic purchase and hoarding of petroleum products as the Corporation is working with all downstream industry stakeholders to eliminate the noticeable artificially, induced fuel queues in some fuel stations.”
Alegbe added that because of the prevailing situation, the corporation, which has been responsible for 50 per cent of nationwide product supply, has stepped in to address the scarcity by tripling supply from their tank farms in Lagos and other areas in the country, which will be trucked to the hinterland. He told The Nation that the NNPC within 48 hours from Sunday will be able to inject 600, 103.047 metric tonnes of premium motor spirit (petrol) equivalent of 688 million litres into the market.
He urged to consumers to exercise patience and not engage in panic buying as the scarcity will be arrested as from tomorrow.
The initial cause of the scarcity was a reaction to oil marketers’ report that their stock level was down and the replenishment was not feasible because of unpaid subsidies that stood at N264 billion. The signal from the marketers that they would not be able to import fuel compelled some retail outlets to slow down on sale.
However, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had a meeting with the marketers last week promised that the debt would be fully paid by end of this month. Based on this promise, the marketers agreed to continue with importation of petrol.
However, the National Assembly last week cut the 2015 subsidy budget of N200 billion by half. This action, The Nation learnt, didn’t go down well with the marketers as their fears were heightened that the government may renege on their promise to pay the outstanding debt let alone additional debt. The marketers before now have been showing concern over budgetary allocation of N200 billion for subsidy in 2015, wondering if that may mean a step to full deregulation of the downstream sector.
Although the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore and the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, could not be reached yesterday, Olawore confirmed to reporters that there was a drop in MOMAN members’ stock but with the meeting held with the Minister of Finance, they would step up importation.
For IPMAN, it was learnt that the level of debt owed them is enormous. Theirs is a complex case because The Nation learnt that many of their members have issues with clearance on the imports they made and without the clearance there will be no payment.
Besides, The Nation also gathered that the banks had stopped granting letters of credits (LCs) to IPMAN members, which worsened the supply situation.
At the moment, only the NNPC through its subsidiary, the Pipeline and Products Marketing Company (PPMC), is importing petrol.
The APC Presidential Campaign Organisation (APCPCO) yesterday described the return of fuel queues in the Federal Capital Territory, Abuja, Lagos and some major cities and the reduction in the hours of electricity supply to Nigerians as sad reminders of the failure of the PDP-led Federal Government.
Its spokesman, Mallam Garba Shehu, in a statement, said: “The glaring and inexcusable failure of the PDP government in these two important areas is a sign of gross ineptitude, maladministration and corruption, which is responsible for the sorry economic state the average citizen of Nigeria has found themselves”.
It wondered how a political party, which has been in power for 16 years and which is unable to ensure that its citizens enjoy regular fuel supply being an oil producing and endowed country and electricity having privatised the power sector and given generous financial assistance to operators of the power sector can still feel confident to seek another term in office.
The 3,623.11 Mega Watts (MW), which the Transmission Company of Nigeria (TCN) sent out on February 23, dipped to 3,063.23MW on February 25, resulting in a fall by 559.88MW within two days.
According to the power statistics on the website of Federal Ministry of Power yesterday, the power generated by the Electricity Generation Companies (Genco) was 3,131.08MW, out which the TCN could not wheel 67.85MW being the gap between the energy sent out and energy generated by the Gencos.
Asked what is responsible for the drop in power supply, ministry’s Deputy Director, Mr. Timothy Oyedeji, said the last he heard of the situation was that Seplat shut down for routine maintenance of gas pipeline.
In the period under consideration, the electricity market dropped to a peak power generation of 3,866.8 to 3,224.8MW, indicating a decline of 642MW.
The statement said: “For the people of Nigeria to be again confronted with the specter of fuel scarcity so soon after the harrowing experience of last Christmas period shows that the Jonathan government can never get anything right as Nigeria will continue to be an embarrassment among the oil producing countries of the world.
“The issue is that being unable to set up even one new refinery in the past five years and unable to get existing refineries to function up to 50 per cent capacity, the people of Nigeria surely need another set of people to be in charge of affairs.
“Those who man the two critical sectors of fuel and power are cronies of President Jonathan and supporters of the PDP that they have no reason to discharge their mandate in favour of the Nigerian people.
“We all remember the hype and fanfare with which the privatisation of the power sector was carried out and yet majority of Nigerians are having less electric power or none at all but are forced to pay outrageous electricity bills to the operators of the power companies who are either card-carrying members of the PDP or are close associates of President Goodluck Jonathan.
“To add insult to injury, the Jonathan government has also given billions of naira to these operators under the guise of assisting them to improve power supply, without result. And this happened after the sector had been sold and the facilities handed over to these private operators.
“We of the APC demand that the Jonathan government and his party explain to Nigerians the reason why fuel scarcity and blackout should persist making life a hell for Nigerians, despite huge investments and policies put in place to eradicate these problems”
The APC Campaign Organisation (APCPCO) stressed that the return of fuel queues was a confirmation that the policies of the Jonathan administration are founded on deceit and insincerity.”
Shehu argued that the recent fuel price reduction announced by the Federal Government was borne out of political expediency, rather than compassion, because the ruling party is desperate to cling to power at all costs, adding that all the emergency projects and palliatives being bandied about by the Jonathan government are intended to pull wool over the eyes of Nigerians.
He said a PDP administration that greeted Nigerians with an unprecedented fuel price increase of N140 per liter in January 2012 has lost the basis to be trusted by Nigerians.
Shehu said the return of fuel queues was like an accident waiting to happen because the recent reduction in petroleum product prices by the Jonathan PDP administration were not based on sincerity, adding that scales are dropping from the eyes of Nigerians day after day and are embracing the imperatives of change for a better Nigeria.
Students of Kogi State University (KSU) are groaning under the weight of scarcity of petrol being experienced in Anyigba, the institution’s host community. Some of them, who spoke to CAMPUSLIFE, urged the government to intervene to lessen the plight of students.
Abubakar Audu, a 200-Level Mass Communication student, said the situation was making him to spend more, saying if the scarcity was not addressed, several students living off-campus would be forced to trek long distances to school.
He said: “The situation is not funny. I cannot afford to spend N300 daily to go to school. If others can afford it, I cannot. It is absolutely difficult for someone like me to cope,” Abubakar said.
Mabe Odawn, a 400-Level Law student, wondered what caused the scarcity, hoping the government would intervene to bring an end to it.
For Mulikat Oyiza, the discomfort being created for the students by the scarcity was a bad experience. She said students had been going through untold hardship to and from the campus. She appealed to the petroleum marketers to consider condition of the masses.
Reacting to the matter, a major marketer in the area, Abdul Isah, said the situation may not be unconnected with the habit of some of petroleum products’ marketers in Lokoja, the state capital, to hoard the product.
He said some of the marketers in Anyigba depended mostly on the products brought from the state capital. Isah said members were working to address the issue.
Investigations by CAMPUSLIFE revealed that transport fares of commercial vehicles have doubled. The students mostly ride on motorcycle to and from school. They also use petrol for generators, since the city is always experience epileptic power.
Some of the filling stations visited by our reporter over the weekend were under lock because of the scarcity.
