Tag Archives: SCARCITY

REPORT: Kerosene scarcity bites harder across Nigeria

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The scarcity of kerosene, used by millions of largely poor Nigerians for cooking, has hit major cities causing huge increase in price.

The situation has also caused some residents to turn to alternatives such as firewood and cooking gas.

Three of the most affected cities are Kaduna and Zaria in Kaduna State and Calabar in Cross River State.

In Kaduna, none of the filling stations visited by PREMIUM TIMES in the state capital on Saturday had kerosene (DPK) for sale.

In one of the stations, the attendants said the scarcity began on January 2 as they got no supply from Lagos and Kaduna Refinery.

“We have no supply of DPK since the 2nd of this month. The one you see our vendors selling they bought since Christmas,” the attendant said.

In Calabar, the scarcity has led to an increase in price to between N350 and N400 per litre from less than N300 per litre.

A News Agency of Nigeria, NAN, survey on Sunday showed that the product was not available in any filling station in the Cross River capital and its suburbs.

However, the product was available only in surface tanks in parts of the city, where dealers sold it at N350 per litre.

The survey revealed also that the itinerant retailers sold the commodity between N380 and N400 per litre, depending on the area.

Grace Nja, who resides in Ikot Efanga area of the city, said that she bought the product at N280 at a filling station early last week.

Ms. Nja alleged that petrol product marketers in the state sold their consignments wholly to some middlemen from neighbouring states, instead of the consumers within the state.

“I went to buy kerosene and I saw some women from outside the state carrying big cans and buying the product in large quantity.

“So, they are the ones that buy up the entire supply in the state,” she said.

Another resident, Elizabeth Sunday, decried the situation and described it as greed on the part of the product marketers.

“This is bad for us the poor people of this country. I am a widow and I don’t have money to buy gas cooker.

“Now the price of kerosene is out of my reach and it is hard to feed nowadays.

“My appeal is that government should do something to change the situation in the interest of the masses,” she said

Ekpenyong Lazarus, a resident of Akamkpa in Akamkpa Local Government Area, said that the product sold for N400 per litre in the area.

“That is only when you are able to find it at all,” he added.

CONSUMERS TURN TO ALTERNATIVES

In Kaduna, the kerosene scarcity has led to a 30 per cent increase in price of cooking gas.

At the popular gas vendor station on Ali Akilu Road Kaduna, a seller attributed the price hike to the scarcity of kerosene.

“From yesterday, we started noticing more people coming to buy gas. And because of the sudden demand, some of us started to increase the prices and yet people are buying.

“Before this morning to be precise, we used to refill the 12kg cylinder for N3,500, but now some people refill it for N4,200. So it goes for all the other cylinders,” the trader told PREMIUM TIMES.

Ummi Dalhat, a mother and resident of Unguwan Dosa in Kaduna, said she was unlucky to get caught up in the Saturday cooking gas price rise.

“It is unfortunate that my cooking gas finished yesterday and I sent for refill this morning. When I was told about the rise, I had no option than to buy. Who knows what it will cost tomorrow?”

Maryam Malam, a bean cake (akara) seller at Unguwan Yero, Kaduna, said that the kerosene scarcity has led to a reduction in the volume of firewood sold per price.

“I bought N100 firewood this afternoon and the quantity has reduced because everybody around is buying,” the akara seller who uses firewood for her cooking said.

Chibuzor Clement, a cooking gas stove seller at the Gumi Market told PREMIUM TIMES that he had sold six stove at the time our reporter visited his shop on Saturday.

“Normally, I sell one or two, and some days none. You know the economy is hard on people now. But because of this sudden lack of kerosene, people who can afford the small cooking gas stove are buying it as an alternative. And some are buying electric stove. But you cannot guarantee (electricity) light.

“The cooking gas stove goes for between N4000 and N6000, depending on the size and refilling it (with gas) will cost you about N1700, before the hike I am hearing about,” Mr. Clement said.

OIL UNIONS, OFFICIALS SPEAK

In its reaction to the scarcity, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) on Saturday said there was no drop of kerosene in the private and NNPC depots in Lagos.

Rotimi Benjamin, National Chairman of Surface Tank Kerosene Peddlers (SUTAKEP) branch of NUPENG told the News Agency of Nigeria (NAN) in Lagos that the product was last brought to the depot on December 27, 2016.

He urged the government to come to the aid of the masses who could not afford cooking gas, by supplying kerosene to the depots so that it would be available in filling stations.

A member of NUPENG in Kaduna, Abdullahi Kaka, told PREMIUM TIMES that the product was not available even at the refinery depot in Kaduna.

“Dealers used to come to the depot in KRPC to buy the product which basically is transported from Lagos, and some dealers used to buy it direct. But for weeks now, we do not have new supplies.  I hope the authorities involved will quickly come to the rescue of Nigerians,” Mr. Kaka said.

In Calabar, Esue Obi, Chairman, Independent Petroleum Marketers Association of Nigeria (IPMAN), Calabar Depot, attributed the scarcity to lack of supply.

“As I speak, there is no kerosene in Calabar depot and all the tank farms in the state, Akwa Ibom and Rivers. Those having the product now travelled to Lagos to buy it.

“So, when they add the cost of transportation and other sundry expenses, the price must be high; that is the situation now.

“Importers are complaining of lack of foreign exchange. So, we don’t know when the product will be available,” Mr. Esue said.

When contacted, Ndu Ughamadu, Group General Manager, Public Affairs, NNPC said most marketers have refused to import kerosene due to the scarcity of dollars and the fluctuating crude oil prices.

He said NNPC had no control over marketers as that is responsibility of PPPRA and DPR.

He said NNPC Mega stations sell at controlled price, but refused to give the exact official price

Kerosene was, however, not available at NNPC Mega station, Mando, Kaduna as at the time of this report.

Air Passengers Stranded As Aviation Fuel Scarcity Bites Harder Nationwide

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Air passengers in Nigeria are stranded at airports nationwide, as airline operators jostle for aviation fuel, amidst scarcity that is getting worse.

On Tuesday, the passengers, some of whom were on transit, waited endlessly for the departure hall. While few were lucky to later travel, others were later informed that their scheduled flights had been cancelled.

Aviation fuel, otherwise called Jet-A1, is a specialised type of petroleum-based fuel used to power aircraft and normally accounts for over 30 per cent of operation cost of an airline.

Jet-A1 is 100 per cent imported into Nigeria and subject to fluctuations in the foreign exchange market. In the last 12 months in Nigeria, aviation fuel has steadily climbed from N104 to N240 per litre in Lagos and as high as N270 in northern part of the country.

Flight delays and outright cancellations means that air travelers are unable to meet scheduled appointments at their respective destinations. In extreme cases, this may also result to huge loss of revenues for those hoping to seal some business deals.

At the General Aviation Terminal (GAT) of Murtala Muhammed Airport (MMA), Lagos, for instance, about three out of every four flights were cancelled, with operators citing “operational reasons”.

The Guardian learnt that one of the airlines operating at the GAT, in fact, cancelled all flights on Monday, and left passengers to learn of the development on getting to the airport.

At the Murtala Muhammed Airport II (MMA2) Terminal, also in Lagos, airlines like First Nation, Med-View, Azman and Dana Air were carrying out services but behind schedule.

Read More:

http://guardian.ng/business-services/air-passengers-stranded-as-aviation-fuel-scarcity-bites-harder-nationwide/

Naira Falls To N436/$ On Parallel Market As Dollar Scarcity Worsens

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The naira fell to an all-time low of N436 to the dollar on the parallel market yesterday, as against N428 to the dollar from the previous day, as the perennial scarcity of the greenback in the market took a turn for the worse.

The effect of the dollar shortage was also felt on the interbank FX market where the spot rate of the naira also depreciated to N313.07 to the dollar Thursday, from N310.08 to a dollar the previous day.

This is just as Nigeria’s external reserves fell further to $24.759 billion as of September 21, 2016.
The situation on the parallel market was attributed to the refusal by banks to sell dollars to Bureau de Change (BDC) operators.

The President, Association of Bureau de Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, said none of his members were able to access dollars from banks as directed by the Central Bank of Nigeria (CBN).

“As I speak to you, no BDC has been able to access FX since Monday. It is very unfortunate that the liquidity in the market has dried up. That is too bad for the market,” the ABCON boss said in a phone chat.

Read More: thisdaylive

‘Forex scarcity stifling insurance operations’

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Even as insurance practitioners are complaining about the prevailing apathy by the public towards its services, operators have lamented the negative effects of the foreign exchange crisis confronting the nation on their businesses.

 

The operators under the aegis of the Nigeria Insurers Association (NIA), and the Chartered Insurance Institute of Nigeria (CIIN), noted that the devaluation of the Naira has wiped off the value of their capital base and insurance stock price.

 

Currently, the official exchange of the Naira per dollar is N305.00 while that of the parallel market (black market) hovers between N400 and N420 per dollar.

 

The Chairman of NIA, Mr. Eddie Efekoha, and the Deputy President of the CIIN, Mrs. Funmi Babington-Ashaye, spoke at different fora on the plight of the insurance sector in the face of the protracted foreign exchange crisis.

 

Speaking on the challenges of the sector at a recent Insurance Professionals Forum, held in Abeokuta, Ogun State, Efekoha noted that the sector cannot be isolated from the effects of developments in the nation’s economy, adding that the underwriting ability of the sector is proportional to the financial stability of the economy.

 

Citing statistics to compare what obtained in the past and the current developments, he maintained that the weakness of the Naira among other foreign currencies has drastically reduced the industry’s financial strength and competence to handle certain businesses.

While reeling out statistics between 2015 and 2016, Efekoha said: “In 2015, the N2 billion minimum capital base for life underwriting firms was the equivalent of S10,050,251.26 whereas in 2016, it has come down to $6,451,612.90.

 

Non-life insurance minimum capital of N3 billion in 2015, was the equivalent as $15,075,376.88, whereas in 2016, it came down to $9,677,419.35, Composite insurance firms with N5 billion minimum capital in 2015, or $25,125,628.14 was drastically reduced to $16,129,032.26 in 2016. While Reinsurance firms with N10 billion minimum capital in 2015, or $50,251,256.28 but came down to $32,255,064.52 in 2016.

 

“This obviously has put local underwriting firm at a disadvantaged position when it comes to underwriting dollar denominated accounts and other businesses that require foreign technical assistance.”

 

Apart from the foreign exchange crisis affecting hindering growth of the sector and its contribution to the nation’s Gross Domestic Products, the NIA Chairman enumerated other problems of the economy which has direct negative consequences on the insurance sector.

 

These include the security situation in the North East and South South, current slump in the global price of crude oil and crude oil over-supply, scarcity of petroleum products, depletion of the nation’s external reserves, rationing of forex amongst eligible applicants, inconsistent economic policies and volatile capital market operations.

On her part while responding to the impact of the financial crisis and foreign exchange scarcity on insurance business, in Lagos, the Deputy President of the CIIN, Mrs. Funmi Babington-Ashaye, maintained that operators are finding it difficult to pay premiums to their foreign reinsurers (partners) whom they ceded substantial part of big accounts like oil and gas, aviation, among others.

 

According to Mrs. Babington Ashaye, “When you talk of large risk, i.e., oil and gas, aviation, very small proportion are being kept in this market and close to about 80 per cent to 90 per cent are being ceded abroad and if there is no foreign exchange in the country for them to cede, you can imagine what they are sitting on. They are actually sitting on a keg of gun powder that can explode anytime.”

 

Further, she said: “It is very clear that inflation is very high and the country is actually on the brink of recession. Clearly, it’s only when you have a lot of money to spend that you remember insurance, even for corporate organisations. They have a lot of issues regarding their bottom line. Prices have gone up and you see some of them that are even insuring in the past, comprehensively, have started insuring third party, even some individuals not renewing at all. You can imagine the negative impact on the bottom line of insurance firms.

 

Also, taking Aviation and Oil and Gas, we are aware of how it’s been difficult until a couple of days to get forex, in payment of insurance premium to overseas reinsurers. A lot of companies have not been able to cede reinsurance premium to overseas reinsurers. When you talk of large risk, i.e., oil and gas, aviation, very small proportion are being kept in this market and close to about 80 per cent to 90 per cent are being ceded abroad and if there is no foreign exchange in the country for them to cede, you can imagine what they are sitting on. They are actually sitting on a keg of gun powder that can explode anytime.

 

Thanks for flexible exchange rate that just started recently. I believe that forex will be available at anytime to any company, and individuals at a rate that is determined by demand and supply. I think that should be able to resolve that, because a lot of premiums are in the country, such as airlines that couldn’t take out their income to their foreign countries. In addition, claims are also mounting wide. Inflation, by the time you adjust it and you know by the time you want to pay claims, you have to pay it based on the adjusted figure and the prices have gone up and apart from that, a lot of big claims are coming in.

 

“But I am very confident that once economy improves, of course, it will also dovetail to all sector of the economy, inclusive of insurance industry.”

Ibe Kachikwu Promises End To Petrol Scarcity In Two Days

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The Minister of State for Petroleum Resources, Mr. Ibe Kachikwu , yesterday, assured Nigerians that the fuel crisis that appears to be crippling the nation’;s economy would end within the next two days, while he promised to work with the Central Bank of Nigeria, CBN, in addressing the foreign exchange challenges confronting major oil marketers.

Speaking during a tour of petrol stations in Abuja, Kachikwu apologised to Nigerians for the pains brought about by the scarcity, while he stated that the Nigerian National Petroleum Corporation, NNPC, deploys 300 truckloads of fuel to Abuja on a daily basis, while supply has also been increased across the country.

He said, “We have enough coming in. Obviously the two days of strike hit us very badly but we are flooding in, getting an average of 300 trucks a day into Abuja; it’s going to take a bit of while for the queues to finish but we are hoping that between the next one-two days we should have the queues all disappear because we are continuing to pump in, while a lot of the stations are open 24 hours a day.

“I apologise to Nigerians for all the pains; nobody wants to see people spend two hours on the fuel queue. The president is very bothered about the sight of people waiting for fuel. “ He said talks had begun with the CBN to help major oil marketers in Nigeria access foreign exchange to import petrol into the country.” He said,

“We are doing everything we can; NNPC is taking the whole nation on its shoulders while majors are really not bringing in product; but we are working long term solutions to majors to now begin to go back to importation lane and be able to service their own outlets rather than us servicing our outlets, independents, majors and servicing everybody; its a lot of wear and tear on our capabilities as a status.

“Long term obviously we have got to systemically look at how do you prepare this nation in circumstances where there are emergencies to be able to respond; we are obviously not getting that as well as we should.

NLC Laments ‘Artificial’ Fuel Scarcity In Katsina

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Katsina State chapter of the Nigerian Labour Congress, NLC, has expressed concern over activities of petroleum marketers who create artificial scarcity of petrol in the state.

 

The state’s NLC said some of the petroleum marketers were in the habit of selling the product above the officially approved price. It therefore, called on the government to strengthen the state’s Petroleum Task Force Committee to deal with such unscrupulous petroleum marketers.

 

The state’s NLC chairman, Comrade Tanimu Saulawa, made the call over the weekend when he led other executive members of the organisation on a courtesy visit to the governor.

 

Saulawa said some greedy petroleum marketers have created artificial scarcity of the commodity, thereby creating untold hardship on the people.

He said as labour leaders, they had traveled far and wide and had observed a difference in price and availability of the commodity elsewhere.

“We call on the state government to strengthen the petroleum task force to be more reliable, effective and responsive so as to monitor, ensure and compel marketers to seek petrol at official price.”

Saulawa said it is necessary for the government to take action against the marketers so as to make life easier for people of the state.

He said as labour leaders, it was necessary to set up agenda for the government to address problem facing the state.

The chairman however called on the state government to always cross-check information filtering from political and critic sources before taking decisions.

He said this was necessary as there were politicians and bureaucrats that may have contributed in one way or the other to the problem of the past.

“We wish to advise you to observe and take note of such self-serving individuals and encourage your lieutenants to tell the truth and advice towards good industrial harmony that would lead to peaceful atmosphere for development.”

 

 

Responding, Governor Aminu Bello Masari expressed his administration’s readiness to work with labour leaders to achieve for a vibrant civil service. Masari however called on the NLC to complement his government’s efforts for excellent service delivery in public schools and health institutions.

 

 

Credit: Today

Zayyad I. Muhammad: President Buhari And The Fuel Scarcity

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Acute scarcity of petroleum products in Nigeria dates back to the early days of oil production in the country. It tends to be frustrating to know that many factors are responsible for the scarcity of petroleum products, however it placates that the solution is always simple- adequate supply of petroleum products to the nation’s fuel service stations.
Nigerians are yet again currently suffering from this problem. Being a former minister of petroleum who understands the complexity of the oil and gas industry in Nigeria, President Buhari is in the best position to find a solution to this problem
There are two ways through which Mr. President can tackle this menace- the short term and the long term. With the presentation of a bill to the National Assembly seeking its approval to spend N413 billion for fuel subsidy payment to oil marketers for their outstanding subsidy claims, President Buhari has solved the crisis in the short term.
The long term solution to the recurrent scarcity of petroleum products in Nigeria is what is critically needed. The long term is double-pronged; complete removal of fuel subsidy and bringing Nigeria’s refinery capacity to what oil refining experts call a high Nelson Complexity Index. A Nelson Complexity Index of 10 or above is indicates a refinery has high potential in value addition and high value products.
Complete removal of subsidy means higher prices. President Buhari may not be quick to remove subsidy because of the resultant harsh economic effects that will affect majority of Nigerians. So, President Buhari may be more tilted towards improving Nigeria’s refining capacity.
With the right approach, coupled with the available cheap and easily accessible crude oil; competent manpower and funds, Nigeria’s refineries would operate at near 100 per cent utilization with minimal downtime. What is that right approach? – effective management of Nigeria’s 5,120km pipelines network, efficient management of the nation’s four refineries and building of new refineries.
The biggest problem facing the oil pipelines in Nigeria are: incessant illegal tapping by oil thieves, sabotage, right-of-way incursions, slow detection of leaks and in-line equipment failure due to inaccessible sites, including the old-fashioned method of managing the pipelines. However, there are advanced technologies that can successfully tackle these problems: SCADA- Supervisory Control and Data Acquisition, Fiber Optic Cable (FOC) and Go-devils /scrapers or Smart pigs (also known as intelligent pigs). SCADA or FOC provide advanced warning in real time which helps pipelines companies to take quick action to protect long-stretch of pipelines network, even if it is located in inaccessible areas where visual inspection might be difficult. The impressive aspect of the SCADA and FOC technologies is that they sense and locate interference before the pipelines damage takes place. Smart pigs are used for detecting anomalies in pipelines or other mechanical damages. As for right of ways incursion, experts argue that the best way to tackle it is via community involvement through sustainable CSR projects and programmes. In addition, a robust standby force is needed to effectively man the security of the pipelines.
Our refineries are not working because of poor management system. Since government will not privatize them, let the government put up effective conditions for their operations: the four refineries should be granted full autonomy to cater for themselves- pay their bills and dividends to the government. When the workers know that the refineries output will determine their take-home pay; things may change.
Buhari being very passionate about reforming the oil and gas sector, he will definitely build more refineries. To increase our refinery capacity, government should go modular, mini and mobile refineries:   There are affordable 1,000 bpd – 30,000 bpd Modular refineries whose equipment units are pre-fabricated on skid-mounted structures prior to shipment to any location. If this is done, the only lasting solution to the recurrent scarcity of petroleum would have been found.
 
Zayyad I. Muhammad writes from Jimeta, Adamawa State, zaymohd@yahoo.com, 08036070980. He blogs at www.zayyaddp.blogspot.com
Views expressed are solely that of author and does not represent views of www.omojuwa.com nor its associates

“We Are Aware Of The Hardship And Suffering Of Nigerians With The Fuel Scarcity”- APC

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The ruling All Progressives Congress, APC, has said that it is aware of the suffering and hardship that Nigerians are passing through, occasioned by the biting fuel scarcity across the country.

The party pledged that the situation is being addressed, urging Nigerians to be patients as ‘nothing good comes cheap. Sacrifices are required’

Motorists faced untold hardship in their quest to purchase Premium Motor Spirit, PMS, also known as petrol.

Most of the petrol stations in the country, Tuesday, were shut due to unavailability of the petrol, while the few filling stations selling the product were besieged by a large crowd of motorists.

APCfuelBlack marketers were seen at the front of almost all the petrol stations, hawking fuel in 10 litres plastic containers at exorbitant prices, ranging from between N150 per litre and N350 per litre.

Even at the front of the NNPC headquarters in Abuja, the black marketers continue to ply their trade unhindered, providing an alternative for motorists who could not afford to spend several hours queuing for fuel.

In apparent reaction to the hardship experienced by Nigerians, the APC took to its Twitter handle to assure Nigerians that the Muhammed Buhari-led government will deliver.

“The APC is aware of the hardship Nigerians are passing through, resulting from the ongoing fuel scarcity. Situation is being addressed!”

“Let’s be a little more patient with the new cabinet of President Buhari. Most importantly, be assured that this govt will surely deliver!”

“Nothing good comes cheap. Sacrifices are required. By the time we pass through the foundation stage, Nigerians will see a new Nigeria!

Fuel Scarcity Looms Over Non-Payment Of Subsidy

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The return of long queues at filling stations across Lagos metropolis and some other cities like Abeokuta, Ogun State and Ilorin, Kwara State may have been triggered by the Federal Government’s alleged delay in meeting subsidy payment obligations to oil marketers.

It was gathered yesterday that the fuel marketers were yet to receive subsidy payments which amount to over N300 billion.

Meanwhile, a fresh wind of change has begun blowing in the process of crude oil transactions as the Nigerian National Petroleum Corporation (NNPC) yesterday announced the cancellation of the Offshore Processing Arrangement (OPA) opting for a more efficient Direct Sale-Direct Purchase (DSDP) alternative.

The new DSDP policy, which allows for the direct sale of crude oil by NNPC as well as direct purchase of petroleum products from credible international refineries, would automatically eliminate the activities of middlemen in the crude oil exchange for product matrix.

Credit: Guardian

Refineries To Produce 20% Of Petrol Consumed Daily – NNPC

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The 125,000 bpd Warri refinery which resumed last week after maintenance is expected to run at 60,000 bpd, the NATION says.

Group Executive Director of Refining and Petrochemicals, Ian Udoh said six cargoes are expected to be received a month of Nigerian Bonny Light and Escravos crude oil to run 180,000 barrels per day (bpd) or 40 per cent, of Nigeria’s total refining capacity.

Ian-Udoh-360x354.jpg

The Port Harcourt complex will start ramping up over the next two weeks but only the newer of the two plants at the site is functional and at 90,000 bpd versus its 150,000 bpd capacity.

Mr Udoh said he expected to produce 8 million litres a day of petrol, accounting for about 20 per cent of the estimated consumption.

The last refinery to restart will be the Kaduna Refinery as it will take about two more weeks to repair the pipeline bringing crude from the oil-rich delta in the South south.

The Nigerian National Petroleum Corporation (NNPC) hopes that its domestic refineries can cover 20 per cent of domestice product needs, as Nigeria has wholly depended on subsidised fuel imports and crude-for-product swap agreements and suffered acute fuel shortages since February.

Source – www.nigerianbulletin.com

Fuel Scarcity Returns in Nigeria, As Marketers Ration Products

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After a brief respite, fuel queues have returned at the filling stations across the country just as some filling stations in Lagos and Ogun states, as well as the Federal Capital Territory (FCT), Abuja, have started indiscriminate hike of pump price while a few others have locked their premises.

However, the Nigerian National Petroleum Corporation (NNPC) said the queues resulted from panic buying, urging consumers to ignore the baseless rumours spurring the action. It noted that some filling stations may be acting on speculations about government’s stance on fuel subsidy to create artificial scarcity.

The Group General Manager, Group Public Affairs Division, NNPC, Ohi Alegbe, said the corporation was working to maintain stability in the supply and distribution of petroleum products.

He assured that NNPC has enough petrol stock to service the country for 25 days at a national consumption rate of 40 million litres per day and has increased distribution to marketers and NNPC retail outlets across the country.

According to him, there is sufficient stock at the coastal depots in Port Harcourt, Warri and Calabar, apart from the national strategic reserves.

Meanwhile, stakeholders have emphasised the need for financial incentives such as tax holiday and insurance to encourage investors’ participation in the oil and gas sector.

They are also seeking requisite laws to regulate the sector’s operations for optimal opportunities. The stakeholders, at the learning managers’ workshop for oil/gas and allied companies, hosted by the Petroleum Training Institute (PTI), Warri, Delta State, noted that competitive pricing would encourage investment in the sector.

From The Guardian’s survey, many of the marketers are suspected to be hording products, having sold products till Tuesday night but suddenly closed shop on Wednesday morning.

Meanwhile, industry sources claim that the Federal Government’s delay on policy pronouncement is responsible for the fresh scarcity, as marketers want to know its stand on subsidy before importation.

This followed the discordant tunes from marketers and other stakeholders, who want total removal of subsidy, while the organised labour has insisted on the status quo.

The Chief Executive Officer of Seplat Petroleum, Austin Avuru, said recently that the respite enjoyed by Nigerians was due to the importation of products by some marketers owing the government. Immediately they balance their outstanding, he said, fuel scarcity would resurface.

Avuru, however, flayed the labour unions for their emphasis on subsidy, describing their agitations as “unreasonable, but unfortunately they were able to buy the populace into the baseless struggle.”

Managing Director of Mobil Oil Nigeria, Tunji Oyebanji, and the Chief Executive Officer of Oando Gas and Power, Bolaji Oshunsanya, favoured deregulation, though urging government to put in place palliatives before the pronouncement.

Oshunsaya said: “We don’t have choice than to deregulate. It is obvious that Nigeria can no longer sustain the huge amount of money spent on subsidy.”

For Oyebanji, “the marketers’ position is to pay the undisputed sum on subsidy first, and then reconcile the arrears. Government should encourage private refineries because if we refine locally, we could refine cheaply, depending on the cost of crude and production.

“Presently, we import and deal with banking loans, which we need to service in due course. We need a clear direction on what the government will do and when it will do it so that we can continue with our businesses.”

The workshop also underscored the imperative of developing the gas infrastructure (gas pipelines) to fully harness the benefits of investment in the sector.

Speaking on a topic, “Gas Development: Onshore and Offshore – a Level Playing Field for the Future of the Industry,” the guest speaker, Dr. Olimma Ufuoma Allison, outlined the essentials of gas formation and depicted the natural processes in the evolution of viable oil and gas wells and reservoirs.

According to her, Nigeria has the largest gas reservoir in Africa and is ninth in terms of resource availability in the world. Allison, however, noted the huge cost of gas infrastructure development and government’s effort at addressing such challenges.

She stressed the success of Joint Venture collaboration between Nigerian Liquefied Natural Gas (NLNG) and foreign companies in exploitation of gas in Nigeria, stating that the investment potential in the industry was a consequence of the rising demand for gas, both locally and globally.

She noted how the need to reduce gas flaring actually spurred investments to meet the national and international regulatory requirements. Ufuoma further noted threat to security, inherent risk and low investment in gas infrastructure as the major challenges in gas development projects in the country. She maintained that the country has a huge gas reservoir.

The Ag Principal/Chief Executive of PTI, A.J. Orukele, had earlier stressed the importance of training to the development of the sector, stating: “The learning managers workshop is critical to us (PTI), as it provides a forum for interaction on the needs and future of oil/gas and allied companies’ modern technical innovations.

“Over the years, the information gathered from our interaction had enabled us to tailor a new line of action, which continues to shape the institute to serve the industry adequately.”

Read More: http://www.kevindjakporblog.com/2015/07/fuel-scarcity-returns-in-nigeria-as.html#ixzz3ejwRFVS2
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NNPC Set To Import 1billion Litres Of Petrol In March

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The Management of the Nigerian National Petroleum Corporation (NNPC) on Monday began fresh measures to halt what it described as artificially induced petrol scarcity noticeable in some parts of the country.

To this end, the corporation said it planned to import more than one billion litres of petrol in March to address short fall in supply.

NAN reports that the Group Managing Director (GMD), NNPC Dr Joseph Dawha, in conjunction with the Chief Executive Officers of the NNPC subsidiaries, began detailed monitoring of fuel stations in Abuja.

Others in the exercise are the Executive Secretary of the Petroleum Products Pricing and Regulatory Agency (PPPRA), Mr Farouk Ahmed, and the Managing Director of Pipeline Products Marketing Company (PPMC), Mr Haruna Momoh,

Also in the team was the Director of Department of Petroleum Resources (DPR), Mr George Osahon.

Dawha said the exercise was to checkmate hoarding and panic buying of petrol, particularly in Abuja, Lagos and its environs.

The GMD said there was enough petrol in the nation’s stock to take care of the need of motorists.

He said as the supplier of last resort, the corporation was doing everything within its mandate to alleviate the avoidable hardship caused by the situation.

The Executive Secretary, PPPRA, said the problem was more of artificial because there were enough products.

“ The problem we have is not really with the supply because there is enough supply .

“The PPMC has almost more than 800,000 metric tones that will be arriving in the month of March which is over a billion litres in terms of our daily consumption.

“Other marketers are also bringing in their cargo so by the end of the week, hopefully, everything will be clear.

“I think we should just encourage the people to desist from panic buying; things are going to be very okay,” Ahmed said.

The Managing Director of PPMC said the corporation had more than enough of the products in the stock for the entire nation.

Momoh explained that there was a good build up till April and with this build up, “we are very confident that we will not have any problem in terms of supply.

“There are challenges with distributions; we will continue to handle those challenges and we try everything possible to make it seamless, smooth and as stable as possible beyond April,” he said.

He said the agency was putting in measures place to address other challenges beyond April.

He said that the other challenges which other marketers, who happened to be the other half in the chains of supply, would be addressed by the PPPRA.

The Director of DPR said the agency had measures to address hoarding and hiking of pump price above official price.

Osahon said the agency would collaborate with the security agencies to force marketers to sell products at the regulated price.

“We are going to get the law enforcement agencies to force them to sell and at the regulated price.

“We are doing that at several filling stations around the country; we are doing that to support PPMC and PPPRA and make sure that these things ease off as soon as possible,” he said.

Fuel Scarcity Worsens As NNPC Promises Improved Supply

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The fuel crisis across the country worsened, weekend, as most of the petrol stations were shut down leaving motorists stranded.

This was in spite of claims by the Nigerian National Petroleum Corporation, NNPC, on Friday, that it is injecting about 688 million of Premium Motor Spirit, PMS, into the market. Motorists had to resort to the black market, where roadside petrol sellers now sell the commodity for as high as N250 per litre.

However, the NNPC, yesterday, promised that it was working to ensure that the situation is addressed quickly and assured Nigerians that the fuel supply situation will improve in the coming days.

Responding to enquiries from Vanguard, spokesperson for the NNPC, Mr. Ohi Alegbe, said: “On Friday, we had stated that in 48 hours we will wet the market with 688 million litres of petrol. Distribution of products is by trucking. You will agree that it is some distance from the depots and tank farms in the south to the depots and retail outlets in the hinterland. Expectedly, the queues should disappear before long.”

Furthermore, Alegbe blamed the scarcity on panic buying by motorists and sharp practices by some retail outlets who are hoarding the commodity, thereby frustrating efforts to stem the scarcity. He said the NNPC had informed the Department of Petroleum Resources, DPR, of these sharp practices by some petrol stations’ owners for adequate sanctions against them.

He said: “Panic buying has persisted in spite of our appeal to motorists. Secondly, some retail outlets are hoarding the product by dispensing from only one pump head. We have reported some of them to the DPR and we believe appropriate sanctions will be meted out to them appropriately. Also, a source in the DPR disclosed that the scarcity currently being experienced in Abuja is as a result of panic buying and not because of non-availability of petrol.

According to the source, who spoke on the condition of anonymity, DPR officers in depots across the country and even in the FCT have been sending in reports of availability of the commodity at the various depots and liftings by trucks to various petrol stations. The source said: “The DPR had also had discussions with a number of petrol stations’ owners who told us that panic buying is responsible for the long queues.

“A particular owner of one of the petrol stations told us that he received a tanker load of fuel on Friday morning and is expecting to receive another consignment of the product before the end of the day. So, it is evident that the product is not scarce, just people buying the commodity out of fear of the unknown.”