Tag Archives: Oil Marketers

FG To Pay Oil Marketers N163m Fuel Subsidy Daily

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There are strong indications that the Federal Government would start paying N163m daily as fuel subsidy to oil marketers because of the slight increase in crude prices. A survey of markets around the world showed that oil prices, including Nigeria’s Bonny Light 1have increased from about $29 to $40 per barrel, meaning additional cost to refining companies, which pass the high cost to traders. Consequently, Petroleum Product Pricing Regulatory Agency, PPPRA, which had discouraged government from paying subsidies because of prolonged era of very low crude prices, has advised it to start payment. The agency believed it has become necessary for the President Muhammadu Buhari-led administration to commence subsidy payment from this month. In its April, 2016 template posted over the weekend, the agency put the subsidy at N4.09 per liter.

This amounted to N163m daily as the nation’s estimated daily demand for fuel hovered at 40 million liters. PPPRA puts the nation’s landing cost for fuel, including cost and freight, traders margin, lightering expenses, NPA, NIMASA, jetty/depot thru charge and storage charge at N75.79 per liter. The agency put total sub margins, including administrative charge, marine transport average, bridging fund and margins at N14.30 per liter. It puts total cost, including highway maintenance, government tax, import tax, fuel tax and subtotal taxes at N90.09 per liter. PPPRA also puts the official ex-depot, ex-depot and ex-coastal prices at N71.70, N76.00 and N71.19 and arrived at an under recovery of N4.09 per liter. Executive Secretary, Major Marketers Association of Nigeria, Mr. Femi Olawore said in a telephone interview yesterday that the subsidy is justified because of the slight increase in oil prices. He said the subsidy would enable marketers to recover cost involved in the process of importing fuel into the country. It was learnt that government would need to pay more as subsidy, should crude oil prices continue to surge in the global market. However, there was improvement in fuel supply because of the involvement of many stakeholders over the weekend. A visit to Apapa in Lagos showed that many marketers were involved in lifting of fuel to many destinations. The involvement followed an agreement signed with tank seven farm owners for the storage and lifting of imported fuel few days ago.

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FG Approves N407bn Payment To Oil Marketers

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The Federal Government on Wednesday finally approved the payment of N407.07bn as fuel subsidy to oil marketers.

The payment was confirmed by the Minister of Finance, Mrs. Kemi Adeosun, through a statement issued by the Director, Press in the Ministry of Finance, Mr. Marshal Gundu.

The payments according to the statement include arrears from the 2014 financial year as well as payments for the current year.

The minister in the statement said the approval was given following a directive issued by President Muhammadu Buhari that the amount be paid immediately to the oil marketers in order to end the lingering fuel scarcity in the country.

It called on the oil marketers to reciprocate the action of the Federal Government by ensuring that all fuel queues disappear within the shortest time possible.

The fuel scarcity which has been on for about a month had caused severe hardship to Nigerians.

The minister in the statement said despite the dwindling revenues, the Federal Government is still committed towards ensuring that Petroluem products are made available to Nigerians.

Credit: Punch

Those Behind Fuel Scarcity, NNPC Points Finger

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The Nigerian National Petroleum Corporation, NNPC, yesterday blamed the persistent fuel crisis on the continuous vandalisation of the System 2B pipeline at Arepo, sharp practices by oil marketers and the delay in the payment of outstanding subsidy claims to the marketers.

The NNPC in a statement in Abuja, after honouring the invitation of the Senate Committee on Petroleum Downstream, also stated that the Senate had given it a two-week ultimatum to end the fuel scarcity.

In a presentation to the Senate Committee, Managing Director of the Pipelines and Product Marketing Company, PPMC, a subsidiary of the NNPC, Mrs. Esther Nnamdi-Ogbue, stated that  Nigeria has lost a total of 531 million litres of petrol valued at over N50 billion to pipeline vandals between January and September, 2015, at the problematic System 2B Pipeline network which stretches from the Atlas Cove in Lagos to Ilorin.

Nnamdi-Ogbue explained that the losses, which chiefly accrued from the incessant hacking of the pipeline at the notorious Arepo to Mosimi axis of the pipeline artery, have made the task of providing seamless flow of petroleum products to retail outlets more burdensome.

Credit: Vanguard

Five Oil Marketers Banned From Supplying Aviation Fuel

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The Nigerian Civil Aviation Authority (NCAA) has directed five oil marketing companies to stop supplying aviation fuel to local and foreign airlines operating in the country.

In a notice to the Airline Operators of Nigeria (AON), the NCAA explained that the suspension became necessary due to lack of depot facilities by the oil firms and the inability to verify their integrity and competencies.

The five firms listed in the NCAA circular are; Ascon Oil, Acorn Petroleum, Jushad Oil and Gas, Lubcon and Star Orient Aviation.

The regulatory body has directed the Federal Airports Authority of Nigeria (FAAN) to deny the companies access to airports in the country until further notice, demanding strict compliance with the directive.

Credit: ChannelsTV

Subsidy: Controversy Trails Payment Of N413bn To Oil Marketers

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Controversy is now trailing the payment of N413billion to oil marketers, as the Senate, which is expected to give approval to the payment , has claimed that there is no supplementary budget before it for the amount .

The development came just as   the Minister of State for Petroleum Dr Ibe Kachikwu stated that the marketers would be paid next week.

Spokesman of the Senate, Senator Aliyu Abdullahi, yesterday said no supplementary budget for the payment of the N413billion subsidy claims for petroleum marketers has been received from the executive,.

Abdullahi stated this while briefing Senate correspondents in Abuja yesterday.

He said, “With respect to the issue of subsidy, the Senate is surely concerned about it because we are all affected. Nobody is left out because there is no separate filling station for certain category of people.

“If the supplementary budget comes, we will do justice to it. It’s a priority and it will be given expeditious treatment when it is eventually unveiled but that does not mean that action was not being taken.

Responding to a question on whether the 2016 Budget will not be delayed because the Medium Term Expenditure Framework (MTEF) has not been sent to them by the executive, Abdullahi said the budget is a process, adding that the constitution of the Federal Executive Council and the inauguration of the Senate committees this week will facilitate speedy process.

He said, “The three-year MTEF had already been laid before the Seventh Senate but with the coming on board of the new government, there would be reviews and the cabinet is just coming up.

Credit: Leadership

Oil Marketers Call For Release Of N413bn Subsidy Claim

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Some accredited oil subsidy marketers on Thursday said the failure of Federal Government to release the approved N413 billion subsidy debt was disrupting their fuel importation schedule.

 

Speaking in an interview in Lagos, the marketers said that they were concerned that the money had not been released one week after the approval was granted.

The marketers alleged that the delay was affecting loading activities at depots and had led to the shutting down of some filling stations due to non-availability of petroleum products.

“Government, through the Central Bank of Nigeria, has not released any subsidy claims as promised.

“As I am talking to you we have been directed by the CBN to go and meet the Debt Management Office for clarification.

“All our efforts to get the said money have been in vain and to start importing has been a serious problem.

“There is no money to back up the cheques presented to the marketers.

“We do not even know the basis for the clarification of the cheques, but we are aware that there is no money in the account.

“It is like giving the marketers cheques only to discover that there was no money in the account.

“Nothing like importing now because all marketers are angry because of the failed promised,” one of the marketers al

The market said; “If you go outside Lagos you know how much they are selling fuel per litre now, it is the last stock that we are selling now.

“It is unfortunate that the Department of Petroleum (DPR) is saying that we are hoarding the products, which is not the truth.

“We have not collected a single coin from the money.

“If not the fact that some of the marketers are making some money from other products, how do you think we will be able to get anything for now?

“We have been summoned by DPR for a meeting this morning to settle the crisis, we are only managing what we have in stock at present,” he said.

It will be recalled that the Federal Government, had on Nov. 3, approved the sum of N413 billion to petroleum products marketers as the outstanding payment for subsidy claims.

FG Approves 413bn Naira Oil Marketers’ Subsidy Claims

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The Nigerian National Petroleum Corporation (NNPC) says the Federal Government has approved the payment of 413 billion Naira to oil marketers as outstanding payment for subsidy claims.

According to the NNPC, the payment would ensure that there would be no scarcity of the product.

“It is our belief that with the outstanding payment due to Oil Marketers now assured, the marketers and other downstream players will join hands with the NNPC to guarantee that the nation remains wet with petroleum products all year round,” the Corporation said in a statement by the Group General Manager, Group Public Affairs Division, Mr Ohi Alegbe.

The corporation also stressed that it had injected additional volumes into the market, in order to ensure zero fuel queues ahead of the festive season and beyond.

This, the Corporation intends to achieve in collaboration with its downstream subsidiary, the pipelines and products marketing company and other players in the supply and distribution of fuel nationwide.

Credit: ChannelsTV

Subsidy Debt: FG Approves Payment Of N413bn To Oil Marketers

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The Federal Government has approved the payment of N413 billion to petroleum products marketers being the outstanding payment for subsidy claims?, even as marketers insist they are owed about N470billion.
The Nigerian National Petroleum Corporation, NNPC, in a statement in Abuja, also said it has injected additional volumes of Premium Motor Spirit, PMS?, or petrol across the country to boost supply of the product and eliminate the long queues that have resurfaced in many parts of the country.
The statement, signed by the Group General Manager, Group Public Affairs Division?, NNPC, Mr. Ohi Alegbe, noted that the payment of the outstanding N413 billion subsidy claims to oil marketers is part of the Government’s initiative of zero tolerance to fuel queues nationwide.
?Alegbe said: ?”It is our belief that with the outstanding payment due to oil marketers now assured, the marketers and other downstream players will join hands with the NNPC to guarantee that the nation remains wet with petroleum products all year round.”
The Department of Petroleum Resources, DPR, had earlier in the week lamented the fuel supply situation in some states in the country, warning that that any petroleum products depots and filling stations owners engaged in sharp practices would be fined heavily and also prosecuted for economic sabotage.
Director of the DPR, Mordecai Ladan, had in a statement in Abuja, warned oil marketers against products diversion, hoarding, pump manipulation and selling products above government approved prices.
According to Ladan, any petroleum products marketer found to be under-dispensing or selling products above government regulated prices shall be suspended for a minimum of two months.
He said, “Marketers caught diverting or hoarding the products for profiteering shall be sanctioned with a fine of two million naira and have their operating License revoked and prosecuted for national economic sabotage.”
Ladan also stated that the DPR is collaborating with the Petroleum Equilisation Fund (PEF) and the Petroleum Products Pricing Regulatory Agency, PPPRA, to ensure that defaulters are sanctioned accordingly.
To this end, he stated that all DPR offices nationwide have been directed to step up their monitoring activity and ensure full compliance by marketers.

“We Deceived Nigerians, There Was Nothing Like SURE-P Fund” – Gov. Aliyu

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Niger State Governor, Babangida Aliyu, on Tuesday maintained that fuel subsidy is a major source of corruption in the country.

Aliyu added that funds believed to be coming from SURE-P are actually from the federation account.

The governor said this in Minna at the inauguration of a three-star hotel constructed jointly by the Niger State Development Company Limited and the State SURE-P.

He believed that a total removal of subsidy from petroleum products by the Federal Government remains the best solution to stop the endemic corruption in the system.

Aliyu said, “I have been vindicated. When some years back I took a principled position as one of the few governors who said ‘remove fuel subsidy’. It is a cartel for corruption.

“Many people did not understand that time, some publicists didn’t agree with me. They said ‘don’t remove it, it is the common man that will suffer’, but I said ‘which common man, when already the time you are talking about subsidy, the common man goes to buy it triple the price, that you call subsidy’.

“Earlier, we deceived ourselves that there was SURE-P money, but it was the money from our federation account that they were giving to us as SURE-P fund. But we are happy, at least they have set that aside. For me, you will remember when I said ‘remove fuel subsidy’, they burnt my town. People were imported from outside to burn Minna.

“There is no government out there, you are the government. Anything that is done, is for your welfare, own it, take it and don’t allow somebody to come and reduce you and make you a pauper and then he will go back to his village and start sinking things. Own what is yours. Government is not all about the officials alone.

“Therefore, I ask, subsidy for whom? In the whole of Niger State at that time, even the government’s fuel station were not selling at the subsidised rate. Yes, they were selling lower than the commercial filling stations, but they are also above the subsidised rate.

“Why were we having the problems? It is because those who have been enjoying the subsidy have seen the sign that it may be removed and they are afraid. Subsidy is a cartel for corruption.

“People must know how their resources are being expended. I kept crying that we could not rely on the oil revenue. Now, the truth has come in our own time. I thought we will leave the scene before the crash, but the crash has come.

“The removal of fuel subsidy will also ensure the activities of ‘mafias’ in the oil business are stopped while also guaranteeing regular supply of the product in all parts of the country.”

BREAKING: Oil Marketers Reach Agreement With Govt. On Resumption Of Fuel Supply

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Petroleum products marketers and the Federal Government on Monday have set aside their face-off resolved with government, resolving to immediately mobilize to ensure restoration of normal supply of fuel throughout the country.

At the end of a meeting convened by the Senate Committee on Petroleum (Upstream and downstream) to resolve the crisis, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Obafemi Olawore, said its members, consisting Oando, Conoil, Forte Oil, MRS, Total and Mobil Oil agreed to commence lifting and distribution of fuel immediately from the stock supplied by the Nigerian National Petroleum Corporation (NNPC).

Capital Oil and Gas Ltd had on Sunday commenced the loading of 13 million litres of petrol from its depot in Apapa for distribution to the various states to reduce the current scarcity.

The Chairman of the company, Ifeayin Ubah, told journalists in Lagos that more than 2,000 trucks would be loaded before May 29 to boost the country’s economic activities.

He said the company’s facilities had the capacity to load 13 million litres of the product within the period. “This comes to approximately 500 trucks of petroleum products on daily basis. With this, it is our belief that once again our citizens will begin to smile and return to normal family and work life.

“We call on other petroleum marketers to follow suit and save our nation from this impending economic and social crisis,’’ he said.

Credit: premiumtimesng

Oil Marketers, Govt. Resolve Fuel Subsidy Debt Row

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The Federal Government on Monday met with the Major Oil Marketers Association of Nigeria (MOMAN) with the assurance of bringing an end to the current fuel scarcity.

The meeting, presided over by the Minister of Finance, Dr. Ngozi Omonjo-Iweala, was held at the headquarters of the Ministry of Finance in Abuja.

It was resolved at the meeting, which was attended by representatives of MOMAN and some senior officials in the Finance ministry, that the outstanding subsidy claims would be paid even after a new government must have taken over power.

She said with the understanding reached with the marketers, all the outstanding debts would be paid based on the claims processed by the Petroleum Products Pricing Regulatory Agency.

Read More: Punch