GUARDIAN: Petrol price template crumbles as PPPRA is in disarray.

Published:12 Jan, 2017

The Petroleum Products Pricing Regulatory Agency (PPPRA), which controls the cost of petrol in the country, is in disarray and this is disrupting the implementation of the existing pricing template.

The Guardian learnt in Abuja yesterday that the disruption in the system is caused by a lack of mechanism for a quarterly price adjustment, absence of a board and failure by government to appoint a substantive executive secretary. It was learnt that these factors have contributed more to the collapse of the pricing template than the lack of forex for fuel imports. The current open market price of petrol is above the N145 per litre.

The rising cost of crude oil in the international market has renewed pressure on government to increase the pump price as subsidy is staging a gradual comeback. The Nigeria National Petroleum Corporation (NNPC) has almost become the last resort in the supply chain following the inability of independent marketers to access foreign exchange for fuel imports.

The General Secretary of the Nigeria Labour Congress (NLC), Dr. Peter Ozo-Eson, said a lack of a properly instituted modulation scheme would continually lead to price increase.

“Any modulation scheme that is based on import will always lead to consistent price increment,” he said, urging government to build fund from crude oil savings to ensure that modulation is done.

He said the Ibrahim Mantu committee indeed recommended the modulation scheme in 2005 and how it should be operated but that the Olusegun Obasanjo government opted for Petroleum Support Fund.

While a board has been announced for the agency, it is yet to be inaugurated which has made the review of petrol price modulation for the sector impossible.

This has also rendered the Acting Executive Secretary of the Agency, Victor Shidok confused as he has not appointed a substantive general manager, operations, because he is not sure whether he will return to the position or not.

This development has led Mr. Olasupo Agbaje to combine both Operations and Corporate Services Departments, which is seen as detrimental to the functionality of the organisation.

The Chairman, Petroleum Downstream Sector, Ken Abazie, said though PPPRA may not have released another guide for the industry, the available template, which was released in May last year, had made provision for variance and movement that may affect petrol price.

According to Abazie, the current template for petrol would still allow marketers to import and make profit. “But if marketers continue to get forex either from the parallel market or black market, the price of petrol may soon be above the common man,” he added.

The Executive Secretary of Major Oil Marketers Association, Thomas Olawore, said that many marketers were no longer working on the template as they had stopped the importation of petroleum product for a long time.

“What we do now is to rely on NNPC for product due to the high cost of sourcing foreign exchange. It is true there is a major difference between the landing cost of petrol and the regulated price; we don’t know how NNPC is coping with the difference. For now, we depend on NNPC,” he said.

The NNPC yesterday said its Port Harcourt, Warri and Kaduna refineries were expected to pump about 5.3 million litres of kerosene into the market as the three refineries resumed operations.

In an exclusive interview with The Guardian in Abuja, the Managing Director of the Nigerian Product Marketing Company (NPMC), Farouk Ahmed, said the Warri and Port Harcourt refineries had resumed production while Kaduna refinery was also expected to come on stream.

“Port Harcourt refinery is producing between 2.2 and 2.3 million litres per day, Warri is also producing the same while Kaduna is producing 700,000 litres per day,” he said.

Confirming the resumption, the Group General Manager, Group Public Affairs Division of the NNPC, Ndu Ngamadu, in a statement quoted the Managing Director of the Warri Refining and Petrochemical Company (WRPC), Solomon Ladenegan, as saying Warri Refinery had been doing well since the Crude Distillation Unit (CDU) was revved up last Saturday.

According to him, the plant now refines two million litres of kerosene and three million litres of diesel daily.

“This morning, we have pumped the products to PPMC and they have started loading. They are going to load up to one million litres of DPK and AGO. The products are there in the tank and we are doing everything to get them to the market,” Ladenegan disclosed.

Also, the Managing Director of the Paort Harcourt Refining Company (PHRC), Dr. Bafred Enjugu, said Port Harcourt Refinery was producing three million litres of AGO daily, in addition to millions of DPK being churned out by the refinery daily.

While the question of potential scarcity rages, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which began a three-day warning, strike called it off the same day.

At the end of the emergency National Executive Council (NEC) meeting in Abuja on Tuesday, the President of NUPENG, Igwe Achese, said the warning strike was intended to draw government attention to the massive termination of appointments of workers in the oil and gas sector as a result of divestment of assets and disobedience to labour laws by International Oil Companies (IOCs).

 

Source: Guardian

Related Posts

Recent Posts

BREAKING: Gambia’s Yahya Jammeh ‘agrees’ to step down

Yahya Jammeh has agreed to step down as president of The Gambia, according to reports.   Nicholas Germain, a France 24 journalist, quoted sources as saying Jammeh is currently writing a statement where he accepts to cede power.   Guinean officials tell @FRANCE24 that Jammeh currently writing statement where he accepts to leave, in the presence of Guinean officials — nicolas germain (@nicolasF24) January 20, 2017   Jammeh, who lost Gambia’s presidential election to Adama Barrow, initially accepted defeat and...

BREAKING: Donald John Trump sworn in as 45th president of the United States of America

American billionaire Donald  John Trump has been sworn in as the 45th president of the United States of America, succeeding Barack Obama in the White House.   You can follow the updates here on live stream:   http://edition.cnn.com/specials/inauguration-360-live-video

3rd Mainland Bridge Traffic: The irresponsibility of Fashola & FERMA – By Adeeko Ademola

Recently, there have been tales of terrible gridlocks in a particular part of Lagos, the third mainland bridge to be precise and this has over time had it's toll on the traffic situation of some major routes in the metropolis.The Third Mainland Bridge is the longest of three bridges connecting Lagos Island to the mainland, the other two being the Eko and Carter bridges. The bridge which serves as an alternative route to Agege...

Governor Obiano Commits To Employing 178 Youths In Anambra

The Anambra state government has pledged its commitment to solving the problem of youth unemployment in the state, through opening windows of opportunity in various fields of the economy including agriculture, trade and commerce, in the civil service. The Secretary to the State Government, Professor Solo Chukwulobelu, revealed this when he visited the Umuawulu Training Camp where 178 youths were undergoing training ahead of employment into the state civil service under Operation Clean and Healthy Anambra, OCHA Brigade. The agency...

Gabriel Jesus Cleared To Make Debut Against Tottenham

Manchester city have been cleared to play 19-year-old Brazilian winger, Gabriel Jesus, against Tottenham on Saturday, after formally completing his £27 million move from Palmeiras. The Brazil international, Jesus, has agreed to a five-year deal with City in August. He stayed with Palmeiras until the end of the Brazilian season in December. The footballer has won an Olympic gold medal with his country, having scored three times in the men’s football tournament in Rio, after which he was promoted to the...

Lagos To Launch Community Policing To Tighten Security

In a bid to reduce crime and complement the efforts of security agencies, the Lagos state Governor, Akinwunmi Ambode, has announced plans to strengthen community policing.   He disclosed that the government would recruit 5,700 personnel, with 100 in each of the 20 local government and local council development areas within the first quarter of 2017.   The governor also announced plans to extend its infrastructural renewal drive with the construction of 181 local government roads in 2017.   He made the revelation at...

Boko Haram: 75 NSCDC Personnel Killed In Borno In 2016 – Officials

The Borno Command of the Nigeria Civil Defence Corps says 75 personnel of the command were killed while 15 were declared missing in action in the year 2016.   The Commandant of the Corps, Ibrahim Abdullahi, told journalists in a news conference that the officers were killed in separate attacks in Gwoza and Gamboru Ngala in the Boko Haram insurgency.   “We have alerted our sister agencies on the issues while the NSCDC national headquarters have assisted the families of the bereaved.”...

NCC begins enforcement of N5 million fine over unsolicited Calls/SMS

Nigerian Communications Commission (NCC), has said that it has commenced the enforcement of the Do Not Disturb (DND), code which compels mobile network operators to stop sending unsolicited messages to their subscribers.   Prof Umar Danbatta executive vice chairman of NCC at a meeting with the Academia on ITU Study Group Participation held at Digital Bridge Institute, Abuja, said the move became imperative because the NCC had given the operators ample time to comply with the regulatory directive and was now...

Barack Obama berates Republicans for blocking efforts to close Guantanamo Bay

US President Barack Obama delivered an angry parting shot at Congress on Thursday, berating Republicans for blocking his efforts to close the military detention center at Guantanamo Bay. The facility “never should have been opened in the first place” Obama said in a scathing two-page letter on the eve of President-elect Donald Trump’s inauguration. “There is simply no justification beyond politics for the Congress’ insistence on keeping the facility open,” he added. Trump has vowed not...

Trial of ex-NIMASA boss, Jauro, fixed for January 24.

A Federal High Court in Lagos on Friday fixed Jan. 24 for continuation of the trial of a former Acting Director-General of NIMASA, Haruna Jauro, who is facing a N304.1 million fraud charge.   Jauro, who assumed leadership of the Nigerian Maritime Administration and Safety Agency (NIMASA), is charged by the Economic and Financial Crimes Commission (EFCC) alongside Dauda Bawa and Thlumbau Enterprises Ltd on 19 counts bordering on fraud.   The News Agency of Nigeria (NAN) reports that the defendants, who were...

BREAKING: Yahya Jammeh asks for extension of deadline to vacate office.

Gambia’s leader Yahya Jammeh has asked for the extension of the deadline given to him to vacate office by ECOWAS from noon to 4 pm local time, Reuters reported on Friday.  Senegal forces entered the Gambia hours after the opposition figure Adama Barrow, who won the December 2016 presidential election in the small West African nation, was sworn in at the Gambian embassy in Dakar.   But the military intervention – named Operation Restore Democracy – aimed at installing Barrow...

Washington braces up for massive protests as Trump takes oath of office

Law enforcement officers in Washington were on Friday in brace for hundreds of thousands of people planning to celebrate or protest Donald Trump’s inauguration as president of the United States. About 900,000 people were expected to jam-pack central Washington, including the grassy National Mall facing the Capitol, where the New York businessman and former reality TV star will be sworn in. A disparate group of liberal activists irked by comments by Trump about women, illegal immigrants and Muslims have planned protests...

We shut tomato processing plant due to lack of forex, says Dangote official.

Edwin Devakumar, a senior executive with Dangote Group, says the conglomerate had to shut down its tomato processing factory due to lack of foreign exchange for raw material import.   In an interview with Reuters, Devakumar, said the Dangote group has been cutting down its operations across board due to lack of necessary foreign exchange.   “Where the foreign exchange is not available, we are cutting down our operations. For example … we had a tomato-based processing plant, we have shut it down,” Devakumar...

JUST IN: IPOB Trump solidarity rally turns violent

The solidarity rally by the indigenous People of Biafra, IPOB, for new US President, Donald Trump in Port-Harcourt, Rivers State has turned violent. Media and Publicity ?secretary of IPOB, Mr. Emma Powerful, in a short message he sent to DAILY POST alleged that no fewer than 11 members of the pro-Biafra group have been shot dead by security operatives. “They have attacked our people; 11 have been confirmed dead, many others have bullet wounds”, he claimed in the statement. He alleged that...

Protests erupt in Sri Lanka against Donald Trump

A small, but vociferous group on Friday staged a protest outside the U.S. Embassy in Sri Lanka on the inauguration of Donald Trump as U.S. President, officials said.   Carrying placards and chanting slogans, the protestors denounced Trump’s comments on various issues including the environment, war and immigrants and claimed they could have an impact on Sri Lanka.   “We are showing our solidarity with all the people throughout the world who are taking part in protests against president-elect Trump,’’ Siritunga Jayasuriya, leader...

Meet The #PadMan advocating Reusable Sanitary Pads for School Girls

With Nigeria in a recession, embracing frugality is helpful and recommended, but there are things that frugality can’t deal with. One of them is the cost of sanitary pads in Nigeria today. Women and girls simply cannot opt out of their periods. Barring pregnancy or ovulatory disorders, menses will occur every month and the flow must be dealt with. Imagine all these worries for teenage girls attending schools combining the fears of expensive sanitary pads with the...

Two teachers rape girl after showing her porn.

Two teachers, Stanley Akanno and Olakunle Hassan, both teachers in a private primary school in Amuwo Odofin, were yesterday paraded by Assistant Inspector-General of Police, Zone 2, AIG Kayode Aderanti, for serially defiling their 6-year-old female pupil.   The teachers, he said, during extra mural classes, showed pornography on their laptop to the pupil and made her practice same on them. “The pupil has been taken to a government hospital where it was medically established that she had been deflowered. The...

Educate the girl child, stop building mosques – Sarkin Kano

The emir of Kano Mallam Muhammad Sanusi II has called out wealthy northerners to stop building mosques and to stop early marriage of the girl child and start educating female children, since majority of these girls can barely read and write. He made the call on Thursday in his keynote address at the 3rd international conference on Islamic Banking and Finance, organised by the International Institute of Islamic Banking and Finance, Bayero University, Kano. “I’m just tired of people coming to...

IG raises alarm over the rise of suicide cases in the Police force

The Nigerian Police Force is worried over the rising cases of suicide among its officers across the country. The Assistant Inspector General of Police (IGP) Zone 5, Abubakar, Mohammed, lamented the development in an interactive session with policemen in Yenagoa, Bayelsa State, on Thursday. He said recent statistics confirmed that more policemen are taking their lives. Mohammed, a former Director at the International Criminal Police Organisation (Interpol) office in Lyon, France, said the Inspector-General of Police (IGP) has ordered senior police officers...

UPDATE: Jammeh’s step-down deadline may be shifted by 12 hours to solidify negotiations

West African leaders have given Yahya Jammeh, who lost elections last month, until midday on Friday to hand over power and agree to leave The Gambia or face military action carried out by the regional bloc ECOWAS.   However, as it is now, all indications show that the deadline may be shifted by 12 hours as leaders of Guinea and Mauritania are currently in The Gambia for talks with Jammeh to leave power.   Though, this information is yet to be made official,...

El-Rufai donates land for Methodist Church in Kafanchan, begs church not to relocate

Governor Nasir Elrufai of Kaduna State has promised to provide additional land for building of Methodists church in Kafanchan, Southern Kaduna The governor who made the promise when he received the prelate of the Methodist Church Dr. Samuel Chukwuemeka Kanu Uche in his office also urged the Church not relocate from their present location. He said: “I visited your church in Kafanchan after the violence. We are willing to give you another plot of land in Kafanchan, but please consider...