Oil-rich Nigeria expended 2.4 trillion Naira importing fuels, lubricants in 2016 – NBS

Posted on March 9, 2017 by Staff Reporter

The Federal Government spent N2.4 trillion on the importation of fuels and lubricants in 2016, according to the National Bureau of Statistics (NBS).

The agency in its fourth quarter (Q4) foreign and merchandise trade statistics released at the weekend, disclosed that about 18.4 per cent of the total cost was used for the importation of Premium Motor Spirit (PMS) during the year under review.

On a quarterly basis Nigeria spent N699.2 billion for the importation of fuels and lubricants, which if retained in the country, could build institutions that would provide jobs for graduates.

The bureau said the structure of Nigeria’s export trade is still dominated by crude oil exports, which contributed N2.4 trillion or 81.4 per cent to the value of total domestic export trade in Q4 2016.

The percentage of crude exports to total exports in Q4 thereby decreased to 81.4.0 per cent from 84.3 per cent in Q3, but increased when compared to Q4 2015, accounting for 79.3 per cent of the exports.

It disclosed that Nigeria’s import trade by origin in Q4 showed the country imported goods mostly from China, Belgium, Netherlands, the United States and India. They respectively accounted for N404.1 billion or 17.5 per cent, N356.4 billion or 15.4 per cent, N230.0 billion or 10.0 per cent, N205.6 billion or 8.9 per cent, and N113.9 billion 4.9 per cent of the total value of goods imported during the quarter.

Further analysis of Nigeria’s imports by continent during the period, revealed that it consumed goods largely from Europe with import value of N1, 127.9 billion or 48.9 per cent, adding that it also imported goods valued at N761.9 billion or 33 per cent from Asia and N312.8 billion or 13.6 per cent from the Americas.

The bureau stated: “Import trade from Africa stood at N82.7 billion or 3.6 per cent while imports from the region of ECOWAS amounted to N15.1 billion.

“For full year 2016, Nigeria imported mostly from China with 19.7 per cent of total imports followed by the Netherlands, 11.7 per cent then the USA, eight years.

“With respect to import by continent, Nigeria imported the most from Europe, 46.7 per cent then Asia, 35.8 per cent and the Americas, 12.2 per cent. Nigerian imports from Africa stood at 4.1 per cent of total imports in 2016, with imports from within ECOWAS at 1.2 per cent.”

The total value of Nigeria’s merchandise trade at the end of Q4 was N5, 286.6 billion, or 10.6 per cent above the N4.781 billion recorded in Q3.
“Total export value for fourth quarter of 2016 stood at N2.978 billion, which was 28.3 per cent more than the value of the previous quarter. Total import for fourth quarter of 2016 was N2.308 billion, which represented a decrease of 6.1 per cent with the value of the preceding quarter.

“This development stemmed from a rise of N656.3 billion or 28.3 per cent, in the value of exports combined with a decline of N150.9 billion or 6.1 per cent, in the value of imports against the levels recorded in the preceding quarter,” it added.

Meanwhile, the Executive Secretary, Lubricant Producers Association of Nigeria (LUPAN), Emeka Obidike, said indigenous blenders are constantly being threatened with the shutting down of their plants and seizure of their consignments.

He said they are also persistently faced with the risk of losing their businesses, corrosion of their goodwill and professional integrity, asphyxiating demurrages and transactions and default in the repayment of facilities.

Obidike alleged that the National Agency for Food, Drugs Administration and Control (NAFDAC) had in many occasions confiscated their consignments and also gone ahead to detain the consignments of importers, insisting on being presented with NAFDAC licences and proof of payment of dues.

He explained that LUPAN members are duly licensed by the DPR to import, store and blend base oil in Nigeria.

Source: The Guardian

NNPC: No need for panic buying of fuel.

Posted on February 15, 2017 by Staff Reporter

Nigerians have been advised not to engage in panic buying of fuel as measures are being put in place to ensure constant adequate supply.

The Nigerian National Petroleum Corporation, NNPC, said it would increase the February supply of petroleum products by providing six additional PMS cargoes of 37,000 tonnes each.

The move, among others, is part of measures to sustain supply of Premium Motor Spirit (petrol), Automotive Gas Oil (diesel) and Dual Purpose Kerosene (DPK) nationwide.
?
A statement by the corporation’s spokesperson, Ndu Ughumadu, said the
plan will also boost the NNPC’s existing national PMS sufficiency of over 32 days.

Other measures put in place, according to the statement, include immediate importation of three additional Automotive Gas Oil (AGO) cargoes before the end of February and an order for massive 250 trucks per day loading of AGO and DPK, from across the three NNPC refineries in Port Harcourt, Kaduna and Warri.

The statement explained further that the acting NNPC Group Managing Director, Saidu Mohammed, who chaired an emergency meeting on the Corporation’s downstream operations where the measures were taken in Abuja, said NNPC would transmit the full list of marketers involved in off-taking AGO and DPK to the Department of State Services, DSS, for appropriate follow-up by the security agency to forestall possibility of any stakeholders engaging in foul play.

“(Mr.) Mohammed said the move to provide additional PMS cargoes of 37,000 tonnes each was to give further comfort and stability to the robust petrol sufficiency nationwide,” the statement said.

“Other measure the Corporation has taken, apart from ramping up fuel supply nationwide, is an expansion of daily truck load-out of petrol, diesel and kerosene, even during weekends to ensure improved products delivery to the hinterland.

“The Corporation would provide additional marine logistics, all geared
toward improving products movements from offshore to land, to cater for additional PMS supply nationwide.”

Mr. Mohammed, the statement added, however, charged downstream operators to immediately implement measures that would sustain adequate supply and distribution of petrol, diesel and kerosene to every nook and cranny of the Country.

It stated further that the NNPC has also made concerted efforts to pay the outstanding bill owed Duke Oil, the Corporation’s trading arm, for products importation, even as it has put in place modalities for transparent accounting practice.

The statement also disclosed that the NNPC plans to obtain a foreign exchange intervention from the Central Bank of Nigeria, CBN, adding that it would convert the existing issued $144m PMS FOREX intervention
to AGO.

“As part of measures to sustain products supply stability across the Country, NNPC planned to obtain, from the Central Bank of Nigeria (CBN), an AGO Foreign Exchange (FOREX) intervention to marketers as well as Depot and Petroleum Products Marketers Associations (DAPPMAN).

“Already, the Corporation would convert the existing issued $144m PMS FOREX intervention to AGO. NNPC has also developed a comprehensive and clear deadline for the completion of the Atlas Cove-Mosimi pipeline and commenced shipment of AGO to Calabar.”

The statement, therefore, enjoined motorists and other consumers of
petroleum products across the country not to engage in panic buying.

“Motorists and other consumers of petroleum products across the Country are enjoined not to engage in panic buying as NNPC has over 32 days sufficiency for petrol, and adequate volumes of diesel and petrol to meet their demand,” Mr. Ughamadu said.

Reps to increase fuel price by N5 for roads maintenance.

Posted on January 31, 2017 by Staff Reporter

If the House of Representatives signs the current National Roads Fund bill into law, Nigerians may pay additional N5 for petroleum products.

A technical committee set up by the House Committee on Works, chaired by Toby Okechukwu had made the recommendation.

The National Road Fund is aimed at generating revenue for routine and periodic maintenance works on Nigerian roads.

The committee recommended that “fuel levy of N5 chargeable per litre on any volume of petrol and diesel products imported into Nigeria and on locally refined petroleum products.”

It also recommended toll fees not exceeding 10 percent of any revenue paid as user charge per vehicle on any federal road designated as a toll road; international vehicle transit charges; inter-state mass transit user charge of 0.5 percent deductible from the fare paid by passengers as well as surcharge of 0.5 percent chargeable on the assessed value of any imported vehicle into the country.

The fund is to be managed by a governing board with a managing director as the head of the fund.

Adeosun, Kyari, Kachikwu on FG’s committee to ensure fuel remains at N145/litre.

Posted on January 27, 2017 by Staff Reporter

The federal government has set up a committee to see to the coordination of Petroleum Equalisation Fund (PEF), which is aimed at keeping the pump prices of petroleum products at its current prices.

Kemi Adeosun, minister of finance; Abba Kyari, chief of staff to the president; and Ibe Kachikwu, minister of state for petroleum resources, are members of the committee.

This was disclosed by Bashir Dan-Malam, the state chairman of IPMAN, in an interview with NAN in Kano on Friday.

Dan-Malam advised members in Kano state to continue with their normal business, promising that the association would sanction anyone caught hoarding or selling the product above the approved price of N145.

“As leaders of the association, we feel it is necessary to tell our members the truth as the government has no plan to increase fuel price for now,” he said.

“This is a rumour. Anything you did not hear from us, ignore it.”

Dan-Malam said during a meeting with members of the committee, it was resolved that the union should reconcile with the Petroleum Equalisation Fund (PEF) on the outstanding payment of transportation charges.

“During the meeting it was agreed that a committee to be chaired by the Minister of Finance, Mrs Kemi Adeosun consisting of all stakeholders be set up with a mandate to reconcile all outstanding balances,” he said.

“The administration has clearly demonstrated its willingness to create an enabling environment for a viable and sustainable downstream sector in Nigeria and IPMAN is 100 per cent committed to achieving this goal.”

We have no plan to reduce petrol to N70 per litre -FG

Posted on January 27, 2017 by Staff Reporter

The federal government has announced that it will not reduce the pump price of petrol following a recommendation from the House of Reps that the commodity shouldn’t cost more than N70 per litre.

The PPPRA on Thursday held a meeting to discuss the issue.

A top ranking PPPRA official said all the stakeholders came to the table to decide how much a litre of petrol should be sold.

“PPPRA should not take the blame alone. The whole stakeholders should be blamed for the current template. Whenever we review, the stakeholders and the government approve for execution. The template is only domiciled in PPPRA,” he said.

He argued that but for the Federal Government’s intervention, the price of petrol should have been higher than it is presently in view of the foreign exchange challenges.

According to him, petrol price was calculated at less than N300 to $1 whereas the exchange rate is almost N498 to $1, noting adding that marketers cannot even access dollars from the Central Bank of Nigeria (CBN).

Source: news2.onlinenigeria.com

Fully loaded fuel tanker falls at Otedola bridge in Lagos

Posted on January 19, 2017 by Staff Reporter

What could have been a terrible disaster was averted on Wednesday when a tanker fully loaded with petroleum fell on Otedola Bridge in Lagos.

Eyewitnesses at the scene informed newsmen that the accident was as a result of brake failure.

We learnt that it was the quick intervention of the Lagos State fire fighters and other rescue teams that prevented an explosion at the scene.

The tanker has however been towed away from the bridge.

See photos below:

Why Nigeria Banned Toxic Fuel From Europe

Posted on December 12, 2016 by Staff Reporter

When reports filtered in last September, that Swiss trading firms – Trafigura and Vitol – were exploiting weak regulations in Africa to import “dirty fuels” into Africa, including Nigeria, many dismissed it as impossible considering the many government agencies that are present at the ports.
But today, the story seems different as five countries in West Africa have decided to stop importing “dirty fuels” from Europe, the UN Environment Programme has said. Nigeria, Benin, Togo, Ghana and Cote d’Ivoire have all agreed on the import ban.
Daily Sun had in September reported the findings by Swiss watchdog group, Public Eye, with the title, “Dirty Diesel’’ which had alleged that the Swiss trading firms are blending and dumping dirty fuel in Nigeria and other West African countries with more than 100 per cent toxic (sulphur) levels allowed in Europe, thereby causing health and environmental hazards.
Why the ban?
The UN says the move will help more than 250 million people breathe safer and cleaner air because the sulphur particles emitted by a diesel engine are considered to be a major contributor to air pollution and are ranked by the World Health Organisation (WHO) as one of the top global health risks associated with heart disease, lung cancer and respiratory problems.
Head of UNEP, Erik Solheim, hailed the import ban
In a statement, the UN Environment Programme said the five West African countries, in addition to banning the import of dirty fuels, have also agreed to upgrade the operations of their national refineries.
The upgrade, which will concern both public and privately owned refineries, is meant to boost standards in the oil produced in the five countries.
The report into Europe oil exports released in September particularly criticised the Swiss for their links to the African trade in diesel that has toxin levels illegal in Europe.
“West Africa is sending a strong message that it is no longer accepting dirty fuels from Europe. Their decision to set strict new standards for cleaner, safer fuels and advanced vehicle emission standards shows they are placing the health of their people first,” he added.
FG speaks
Despite the denial by the Department of Petroleum Resources (DPR) in September, that it was impossible to have toxic fuel in circulation in Nigeria, the commitment of the Federal Government to ban the toxic fuel from entering the country has proved critics, including DPR, wrong.
Deputy Director, Public Affairs in DPR, Dorothy Bassey, had told Daily Sun in a telephone interview that there was no cause for alarm as all petroleum products are tested before entering the shores of the country. According to her, any product or products that fail the specification test are sent back to the country of origin.
“But if by error of omission or commission any product(s) that fall short of the required specification find their way into the country, the importer of such products will be severely sanctioned,’’ she said. But Nigerians are yet to see such sanctions on the Swiss importers.
But Environment Minister, Amina Mohamed, said: “For 20 years, Nigeria has not been able to address the vehicle pollution crisis due to the poor fuels we have been importing. Today, we are taking a huge leap forward – limiting sulphur in fuels from 3,000 parts per million to 50 parts per million.”
She said the move would result in major air quality benefits in Nigerian cities and would allow the country to set modern vehicle standards.
The WHO says that pollution is particularly bad in low and middle-income countries.

http://sunnewsonline.com/why-nigeria-banned-toxic-fuel-from-europe/

JUST IN: Doomed Jet Carrying Brazilian Team Reportedly Ran Out of Fuel.

Posted on December 1, 2016 by Staff Reporter

The plane that crashed in Colombia killing 71 people including most of a Brazilian soccer team had no fuel on impact, according to initial findings by aviation officials, prompting an investigation into why the plane flew under those conditions.

The comments by the civil aviation authority late Wednesday night confirmed Bolivian pilot Miguel Quiroga’s final words to the control tower at Medellin’s airport on a crackly audio obtained by Colombian media.

“When we arrived at the accident site and were able to inspect the remains we could confirm that the aircraft had no fuel at the time of impact,” said Freddy Bonilla, secretary of airline security at Colombia’s aviation authority.

A recording of the pilot’s final words can be heard telling the control tower the plane was “in total failure, total electrical failure, without fuel.”

He requested urgent permission to land before the audio went silent. The BAe 146, made by BAE Systems Plc, slammed into a mountainside next to the town of La Union outside Medellin.

Only six on board the LAMIA Bolivia charter flight survived, including three of the Chapecoense soccer team en route to the Copa Sudamericana final, the biggest game in their history, a journalist and two crew members.

International flight regulations require aircraft to carry enough reserve fuel so they can fly for 30 minutes after reaching their destination in case they need to circle before landing or fly to another airport.

“In this case, sadly, the aircraft did not have enough fuel to meet the regulations for contingency,” Bonilla said in Medellin. “One of the theories we are working on is that finding no fuel at the crash site or in the alimentation tubes, the aircraft suffered fell for lack of fuel.”

LAMIA Chief Executive Officer Gustavo Vargas said on Wednesday it is at the pilot’s discretion to refuel en route. He said plane should have enough fuel for about four and a half hours, more or less depending on weather.

Rescue crews work in the wreckage from a plane that crashed into Colombian jungle with Brazilian soccer team Chapecoense onboard near Medellin, Colombia, November 29, 2016. REUTERS/Fredy Builes

“Weather conditions influence a lot, but he had alternatives in Bogota in case of a fuel deficiency. He had all the power to go to refuel. It’s a decision that the pilot takes,” Vargas told reporters in Santa Cruz, Bolivia.

Bonillo said weather conditions in Medellin at the time were optimum for a successful landing.

Some have also questioned why Chapecoense used the charter company instead of a commercial airline.

Investigators from Brazil have joined Colombian counterparts to check two black boxes from the crash site on a muddy hillside in wooded highlands near La Union.

Bolivia, where LAMIA is based, and the United Kingdom also sent experts to help the probe.

The club’s vice president, Luiz Antonio Palaoro, said LAMIA had a track record of transporting soccer teams around South America and it had used the airline before.

“We are dealing with the humanitarian aspect of the families and the victims,” Palaoro told reporters in Chapeco. “After that, we are going to have to think about restructuring the team and also in the appropriate legal measures.”

Among surviving players, goalkeeper Jackson Follmann’s right leg was amputated, while defender Helio Neto was in intensive care with severe trauma to his skull, thorax and lungs, and fellow defender Alan Ruschel had spinal surgery.

Two of the Bolivian flight crew, Ximena Suarez and Erwin Tumiri, were bruised but not in critical condition, while journalist Rafael Valmorbida was in intensive care for multiple rib fractures that partly collapsed a lung.

Rescuers have recovered all of the bodies, which are to be sent to Brazil and Bolivia.

The bodies of Brazilians on the plane have been identified and are being embalmed and prepared for transport by military aircraft back to Brazil, Chapecoense soccer club Communications Director Andrei Copetti told reporters.

He said the coffins will arrive in Chapeco as soon as midday Friday and be taken directly to the club’s stadium for a collective wake that Brazilian President Michel Temer is expected to attend.

Since there was no fire on board, bodies are being identified by fingerprints, Julio Bitelli, Brazil’s ambassador to Colombia, told Reuters.

Reps want fuel sold at N70 per litre

Posted on November 30, 2016 by Staff Reporter

The House of Representatives on Tuesday urged the Petroleum Products Prices Regulatory Agency (PPPRA) to review the current price template for Premium Motor Spirit (PMS) with a view to reducing the price to N70.

This followed the adoption of a motion sponsored by Rep. Abubaker Fulata titled “Urgent Need to Review the Petroleum Price Template”.

Moving the motion, Fulata expressed dismay over the circulating rumour of a possible hike in the price of petrol in the country.

Although the rumour was denied by the Federal Ministry of Petroleum Resources, Fulata said it was coming at a time when the nation is going through difficult times.

According to him, the hard times are occasioned by dwindling revenues, high inflation rate, unemployment and general fall in the standard of living of many Nigerians.

The lawmaker noted that the current template for the price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters. The review would also contribute to reducing the current inflationary trend in the economy.

“I am aware that the current cost of freighting PMS stands at N109.1, Lightering expenses N4.56, Nigeria Ports Authority charges N0.84, NIMASA charges N0.22, Financing N2.51 and Jetty put charges at N0.60.

“Storage charges N2.00, retailers margin N6.00, transport allowance N3.36, dealers margin N2.36, bridging fund N6.20 and marine transport average put at N0.15 bringing the total cost to N137.81,” he said.

He further informed the House that the landing cost of PMS remained at N119.74, while the distribution cost and margins of marketers stood at N18.37.

“Thus, the total of both the landing and distribution costs is N138.11, while marketers are allowed to sell the product within the range of N140 and N145 per litre.

Fulata further noted that over 90 per cent of the current price of PMS in the country is accounted for by transport related charges at N124.34 out of N138.11.

According to him, foreign vessels charge higher for lifting the PMS because Nigerian carriers which were supposed to lift 50 per cent of the products lack the capacity to do so.

He faulted the NPA’s inability to dredge the ports despite collecting N0.84 for every litre of petrol thereby costing Nigerian users the sum of N4.56 for every litre of petrol they buy.

“Bridging is supposed to be an annual event only when refineries are carrying out their turn around maintenance which should not exceed three months.

“However, due to the fact that pipelines linking the various depots have been vandalised or in a state of disrepair, bridging has remained a permanent feature of the oil industry in Nigeria,’’ he said. He said that if the pipelines linking the various depots and refineries could be fixed and secured, the bridging fund could be reduced to N2.00 per litre instead of the current N6.20.

“Also a realistic template would bring down the price of petrol to N70.04,” he added. The House therefore urged the NPA to dredge all harbours within a period of one year to enable ships dock in them.

House also set up an ad-hoc committee to interface with the Federal Ministry of Petroleum Resources on the review of the price of PMS and such related matters and report back within weeks for further legislative action.

Reps Want Fuel Sold At N70 Per Litre

Posted on November 29, 2016 by Staff Reporter

This followed the adoption of a motion sponsored by Rep. Abubaker Fulata titled “Urgent Need to Review the Petroleum Price Template”.

Moving the motion, Fulata expressed dismay over the circulating rumour of a possible hike in the price of petrol in the country. Although the rumour was denied by the Federal Ministry of Petroleum Resources, Fulata said it was coming at a time when the nation is going through difficult times.

According to him, the hard times are occasioned by dwindling revenues, high inflation rate, unemployment and general fall in the standard of living of many Nigerians. The lawmaker noted that the current template for the price of PMS could be reviewed downwards without affecting the profit margin of marketers and transporters.

The review would also contribute to reducing the current inflationary trend in the economy. “I am aware that the current cost of freighting PMS stands at N109.1, Lightering expenses N4.56, Nigeria Ports Authority charges N0.84, NIMASA charges N0.22, Financing N2.51 and Jetty put charges at N0.60.

http://www.vanguardngr.com/2016/11/reps-want-fuel-sold-n70-per-litre/

Nigeria spends N958.3bn on fuel imports in five months.

Posted on November 21, 2016 by Staff Reporter

Experts have reasoned that the N958.3 billion which Nigeria spent importing Premium Motor Spirit (PMS), also known as petrol, in five months could build five 20,000-barrels-per-day mini refineries at the cost of government between $75 million and $250 million.

In naira terms, higher expenditure on petrol imports gives impression of worsening foreign exchange position for the country and emphasizes the need to activate the country’s four idle refineries, Francis Ogbimi, a Professor of Technology Management at the Obafemi Awolowo University, Ile-Ife, said.

The new petrol imports, according to the National Bureau of Statistics (NBS), represents more than 120 per cent increase five months earlier and an increase of more that N80 billion within the same period last year.

Nigeria could become self-sufficient in petroleum products by building 10 more refineries, and creating learning infrastructure, as Japan did, to promote rapid competence-building growth and industrialisation, Ogbimi said. This is despite the difficulties in sourcing funds to service the national budget.

The NBS stated that the Federal Government’s imports of PMS between January and April this year was N431.6 billion and that the country had imported about N874 billion worth of petroleum products during the same period in 2015.

NBS’ data showed that Nigeria imported about N254.6 billion worth of Automotive Gas Oil (AGO) in the same period compared to N118.7 billion products in the previous quarter.

The value of imported Household Kerosene (HKK) also increased from N20.2 billion to N25.5 billion in the current period under review.

The rising fuel imports had put additional pressure on the country’s foreign reserves and contributed to the worsening economic situation.

Government has been unable to fix the refineries, forcing the country to rely on importation for about 95 per cent of its fuel consumption needs.

Director of the Centre for Petroleum, Energy Economics and Law at the University of Ibadan, Adeola Adenikinju, asked government to privatise the refineries.

He identified government’s continuous interference in commercial aspects of the downstream sector as major hinderance to the sector.

“I do not think government can wave any magic wand to make the refineries work at internationally acceptable capacity utilisation level. My preference is that the refineries should be privatised and the private sector should be encouraged to take over both the risk and returns associated with the market economy.

Adenikinju said that as a wasteful asset, petroleum should be integrated with other sectors mainly in terms of forward linkages. “Over 6,000 products are derivable from petroleum products. These can form the basis for developing petrochemical industry, fertilizer and ammonia industry, support the power sector.

“We must get our other sectors to continue to play their own roles in revenue generation and employment creation. However, the paradox is that while these sectors are contributing to value addition, they are not making proportionate contribution to government revenue and foreign exchange earnings.”

But Ogbimi argued that the so-called deregulation and privatisation policies of government are based on importing petroleum products.

“Did America become a world power by importing everything from Britain? Did Japan become the second biggest economy in the world by importing everything from Britain and America? Shallowness in reasoning has wasted the first 55 years of Nigeria’s independent life. We need to change our pattern of reasoning”, he added.

NLC Warns Against Another Fuel Price Increase

Posted on November 7, 2016 by Staff Reporter

The Nigeria Labour Congress has warned the Federal Government against any further increase in the pump price of petroleum products, especially Premium Motor Spirit, otherwise called petrol.

The warning is coming as the retail stations of the Nigerian Petroleum Corporations in the Federal Capital Territory and its environs have increased the pump price of the PMS to N145 from the initial N141.

Similarly, some private marketers of petroleum products are now selling petrol in their outlets at N150 per litre.

One of our correspondents reported that some filling stations in Lagos and Ogun states had refrained from selling the product.

For instance, the Oando filling stations at Alapere and Berger as well as the Mobil filling station opposite the Magodo Estate gate did not dispense the product to members of the public since Friday.

Similarly, the Ascon and NNPC stations between Arepo and Magboro, off the Lagos-Ibadan Expressway, Ogun State, did not sell the product on Sunday, raising fears of another round of fuel scarcity.

The General Secretary, NLC, Dr. Peter Ozo-Eson, told one of our correspondents on the telephone on Sunday that it would be insensitive on the part of the government to increase fuel price in view of the current hardship in the land.

Ozo-Eson added, “Well, we have been clear on this matter from the beginning that once you submit the determination of the prices of the products to the market, the way they are doing it in an import regime, that will devalue the naira. Therefore, they will come back and tell you the prices are not realistic. We knew that from the beginning and we said so.

“The fact of the matter is that any attempt to increase the price of fuel now, given the level of hardship and the level of suffering Nigerians are going through, will be regarded as extremely insensitive.”

The NLC secretary pointed out that while the NLC was opposed to any further adjustment in the price of fuel, it was up to Nigerians to also decide how to live with such an adjustment.

He stated, “We do hope that Nigerians will realise that this has no end, and what the government is doing will continue to impose extreme hardship on them, and they need to tell the government that enough is enough.

“Other than that, we oppose any adjustment in the pump price. If the government goes ahead to do it, it will indicate what we hinted right from the beginning that the policy adopted was wrong, and it remains wrong.

“It is up to Nigerians to oppose it. We provided the necessary leadership based on our understanding of the issues and the reality is coming home to roost and it is never too late. Nigerians will have to take the decision as to how they have to live with it.”

While the Petroleum Products Pricing Regulatory Agency refused to confirm or deny any plan to adjust the price of petrol, one of our correspondents quoted officials of marketing firms as blaming the increase in the pump price on the high cost of the commodity at depots.

The pricing template of the PPPRA for PMS was last updated on May 24, 2016 and it had the pump price at a band of N135 to N145 per litre.

When asked to comment on whether the PPPRA was on the verge of hiking petrol price, the agency’s Acting Executive Secretary, Mrs. Sotonye Iyoyo, stated that forex had remained a challenge and noted that the agency works with the prevalent market fundamentals when determining or fixing petrol price.

Iyoyo said “Today as we know there is scarcity of foreign exchange and when we want to fix prices we look at the market fundamentals. We don’t just fix prices without looking critically at the fundamentals of the market.

“There is a price band that is between N135 and N145. The maximum is N145, and so anyone selling at that price is still within the price band.”

A source told one of our correspondents that marketers had stopped importing petrol into the country because the landing cost had gone beyond what the PPPRA stated in the template for the product and the government, through the NNPC, had failed to meet its promise of supplying the importers’ forex needs.

The source explained that due to the crisis in the Niger Delta, the NNPC was finding it difficult to generate enough forex from crude sale as the nation was losing an average of one million barrels per day to the bombing of crude pipelines and vandalism of critical infrastructure.

According to him, the marketers have resorted to getting the product from the Pipelines and Product Marketing Company at around N132 per litre, whereas the actual landing cost of the product is between N136 and N137 per litre, adding that the NNPC was currently subsidising the cost of petrol.

However, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has faulted the increase in the pump price of petrol by the NNPC mega stations and other private filling stations.

The minister, who said the price increase was done without his knowledge, said he would investigate the development, adding that he would also meet with oil marketers to discuss issues concerning fuel price.

Speaking on the sidelines of an award ceremony and dinner organised by the PPPRA branch of the Petroleum and Natural Gas Senior Staff Association of Nigeria on Saturday night, Kachikwu said the instability in the foreign exchange market had been a challenge to the oil importation business.

When asked if the N4 increase in the pump price of petrol by the NNPC stations was a sign of an imminent hike in the rate, the minister said, “First, I am not aware that the NNPC has increased the price. I need to look into that; it is a bit of surprise for me because there are processes in doing this. If they have done that, it means they are doing it wrongly. Let me find out what the facts are.

“Having said that, the reality is that what we did at the point when we did some liberalisation was to enable the free market to float the price. Obviously, as you look at foreign exchange differentiation and all that, it will impact (on the pump price). The worst thing you can do is to go back to an era where we basically will be fixing prices.

“What we ought to be doing is to watch the prices, making sure that they are not taking advantage of the common man, making sure that the template is respected. One of the things I think we had hoped to do, which we should still do before we embark on any price increase, is to work on that template.”

Kachikwu stated that despite the harsh reality with respect to forex availability, the government was ready to tweak some of the components making up the price of petrol in order to forestall any increase in price.

He said, “There are still areas that are within the government’s control like payments to the Ministry of Transportation and the rest, and payments to the Nigerian Ports Authority that are foreign-currency denominated. We are working on the possibility of being able to shift that out so that you still can modulate the prices within where it is right now. But I will hold a conversation with the industry and see how it is going.

“However, what is key is that I never want to see fuel queues back. Those who are investing must be able to predict the pricing methodologies, the pricing consequences and the actions to be able to justify their investments. At the end of the day, I think the PPPRA is the one that has the authority to say it is time the template does justify some level of movement, otherwise you have a crisis of individual decisions on pricing.”

Kachikwu: We’d review our current template before any fuel price increase

Posted on November 7, 2016 by Staff Reporter

Ibe Kachikwu, minister of state for petroleum resources, says the federal government would review its current pricing template before it can implement any increase in fuel price.

The minister explained that some of the elements of the pricing template still lies within the government’s control, and can be amended to keep retail prices within its current band.

Speaking in Abuja over the weekend, Kachikwu said he was not aware that Nigerian National Petroleum Corporation (NNPC) mega-stations had increased their pump price of petrol to N145 per litre, from N141.

“First, I am not aware that the NNPC has increased its price. I need to look into that, it’s a bit of surprise for me, because there are processes in doing this,” he said.

“If they have done that, it means they are doing it wrongly. Let me find out what the facts are. Having said that, the reality is that what we did at the point where we did some liberalisation was to enable the market float the price.

“Obviously, as you look at foreign exchange differentiations and all that, it would impact the landing cost of petrol.

“The worst thing you could do is to go back to the era where we basically were fixing prices. What we ought to be doing is watching prices, making sure that they are not taking advantage of the common man.”

Currently, NPA, NIMASA charge N1.06 on every litre of petrol coming into Nigeria, but Kachikwu suggested that the government would rather cut its own charges in the template first, before embarking on any increase.

“One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates. There are still areas that are within government control.

“These are payments to the Ministry of Transport and the rest, payments to the Nigerian Ports Authority (NPA) that are foreign-currency denominated.

“We are working on the possibility of being able to shift that out so that you still can modulate the prices within where it is right now. But I would hold a conversation with the industry and see how it is going.”

“At the end of the day, I think PPPRA is the agency that has the authority to say it is time the templates does justify some level of movement, otherwise you have a crisis of individual decisions on pricing.”

How Boko Haram Hires Youths To Supply Fuel– NSCDC

Posted on October 30, 2016 by Staff Reporter

The Borno command of the Nigeria Security and Civil Defence Corps (NSCDC) on Sunday raised the alarm that youths in Maiduguri are now being recruited by Boko Haram to supply fuel in Gamboru Ngala area of the state.

The Commandant of the NSCDC, Mr Ibrahim Abdullahi made the revelation in an interview with the News Agency of Nigeria (NAN) in Maiduguri.

Abdullahi said the command had intercepted a reasonable quantity of fuel packaged in a carton of groundnut oil, bound for Gamboru Ngala local government area in the state.

He said since Boko Haram are running out of food and other supplies, they have employed all sorts of means to replenish stock.

“The command had so far arrested a suspect, who confessed that he did not know the owner of the consignment that he was asked to deliver to the insurgents trapped in Gamboru Ngala.

“He later confessed that each of the five litres of fuel is sold at N15,000 to the insurgents.

“You will recall we raised the alarm that some agents of Boko Haram were transporting stolen cows from Mafa, Kalabalge and Bomboshe axis in the state to cattle market in Maiduguri.

“The Boko Haram usually send the cows to their agents in the city who will then sell them and repatriate either cash or fuel to the terrorists.

“We are therefore warning the people especially drivers not to accept or convey any form of message that looks suspicious to any one, especially along the Gamboru axis.

“We are also warning the drivers, park owners and union groups to always check their passengers and their luggages to avoid transporting bad elements that would cause havoc in the society.

According to him, the command is working with other relevant security agencies to bring all the collaborators of terrorists to book.

Credit:

Boko Haram hires youths to supply fuel – NSCDC

NSCDC arrests tanker driver for adulterating fuel.

Posted on October 19, 2016 by Staff Reporter

The Lagos State Command of the Nigeria Security and Civil Defence Corps has arrested a driver, Adebiyi Yusuf, for allegedly engaging in illegal oil bunkering and adulteration of diesel.

Thirty-two-year old Yusuf was apprehended along with one Paul Ifeakandu on Saturday on the premises of a complex on Jimoh Odutola Street, Surulere, Lagos, where they were reportedly selling the product.

It was gathered that eight drums and 14 jerrycans of adulterated diesel; six drums of chemicals; six pumping machines and two number plates, among other items, were recovered from the premises.

Tanks said to be 11,000 litres each were also reportedly mounted on the premises.

It was learnt that the anti-vandal team of the corps, acting on a tip-off, swooped on the suspects around 4pm on Satuday. They were paraded on Tuesday at the NSCDC state command’s headquarters in Ikeja.

Forty-five-year-old Ifeakandu, who hails from Anambra State, said he only assisted the owner of the factory, identified as Okechukwu, to offload the product from tankers.

He said, “The product belongs to Mr. Okechukwu. He is also from Anambra State. I help him to offload the diesel. According to him, he buys the product from a depot in Apapa. I have been working with Mr. Okechukwu for two years now. He gives me N3,000 for every offloading I do.”

However, Yusuf, who claimed to be a Forte Oil tanker driver, denied his involvement in the act, saying he was ill and decided to sleep inside a vehicle parked on the premises when the operatives nabbed him.

Yususf, who also claimed to be a Lagos State indigene, said in Yoruba that he started working for the oil company in January, 2015.

He said, “I was arrested while sleeping in a vehicle on the premises. I told the officers that I am an assistant driver with Forte Oil and not an oil thief, but they ignored my explanation.

“There are mechanics and some people selling gas on the premises. I don’t know why they spared them and arrested me. I don’t know anything about the seized product.”

The Lagos State Commandant of the NSCDC, Tajudeen Balogun, however, said the suspects were culpable of dealing in adulterated and illegal oil bunkering.

He said, “They (the suspects) don’t have licence from the appropriate agency. It looks like they are working for somebody.”

The commandant added that the suspects would be charged to court soon.

Forte Oil Plc, however, denied that Yusuf was its worker.

An official of the firm, who did not want his name in print, said, “We don’t have tanker drivers. He may be working for a transporter. Transporters are independent of our company. We have checked his name in our database; the suspect is not known to us. The company is not affiliated to this case.”

Ghana Begins Fuel Exports To Nigeria

Posted on October 7, 2016 by Staff Reporter

Ghana has started exporting fuel and gas oil to the landlocked countries of West Africa.The state-owned Bulk Oil Storage and Transportation Company (BOST) Limited, is also supplying petroleum products from the same depot to Benin Republic and Nigeria. Ghana’s Minister of Petroleum, Mr Emmanuel Armah-Kofi Buah, who made this known at the meet-the-press series in Accra, said there were plans to extend the exports to Liberia in the coming months.

The minister said the vision of the government was to make Ghana the hub for the distribution of petroleum products in the West African sub-region.The Bolgatanga Petroleum Depot, with a capacity of 46 million litres of refined gasoline and gas oil, was re-inaugurated in August 2015.

Buah said Ghana had been ushered into a new gas era that would guarantee its energy security for the next two decades. “Despite the global downturn in the oil industry, we have managed to increase production“, Buah said. Ghana’s strategic stock was at an all-time high, with about one million metric tonnes of petroleum products IMPORTED from January to June 2016.

Ghana is planing to become the major marketer of refined petroleum product inWest Africa and we here in Nigeria are the giant of Africa with Nothing to show for it.Imagine Ghana achieving this feet with IMPORTED petroleum product and I wonder what is wrong with Nigeria before you export anything out of a country that means you have enough to give out.

We have more than four refineries in Nigeria and we can’t even produce enough product for our daily consumption.

Fuel Price Hike: Technical Committee To Be Inaugurated Thursday

Posted on June 2, 2016 by Staff Reporter

The Federal Government will on Thursday inaugurate the technical committee constituted to address the grievance of labour over the increase in the pump price of Premium Motor Spirit (PMS) commonly known as petrol, a statement said. said.

The statement was issued and signed by Mr Mohammed Bukar, the Permanent Secretary, General Services Office in the Office of the Secretary to the Government of the Federation (SGF), on Wednesday in Abuja.

According to the statement, the committee will also examine other consequential matters arising from the hike in petrol price.

The 16-member committee comprises representatives of organised labour and that of the government, the statement said.

It identified representatives of the Nigeria Labour Congress (NLC) in the committee as Peters Adeyemi, Amaechi Asugwuni, Ibrahim Khaleel, Igwe Achese and Segun Efan while those of the Trade Union Congress (TUC) include Augustine Etafo, Alade Lawal and Abdullahi Sale.

Leading the government representatives is the Minister of Labour and Employment, Sen. Chris Ngige, who is also the committee Chairman, while a representative of the Office of the SGF will serve as the secretary, the statement said.

Other members of the government team are the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, the Minister of Budget and National Planning, Sen. Udoma Udo Udoma, and the Minister of Finance, Mrs. Kemi Adeosun.

The list of government representatives also include the Minister of Solid Minerals, Dr. Kayode Fayemi, Chief Richard Egbule, Chairman, National Salaries, Incomes and Wages Commission and Prof. Adamu Usman, a representative of the Office of the Head of the Civil Service of the Federation, it said.

(NAN)

NUPENG, PENGASSAN To Meet In Calabar Over New Pump Price

Posted on May 12, 2016 by Staff Reporter

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) will on May 12 and 13 deliberate on the new pump price announced by Federal Government.

Alhaji Tokunbo Korodo, the South-West Chairman of the union disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos on Wednesday.

According to him, it is too early to make any official statement until the two bodies meet to deliberate on the matter.

He said that the meeting would discuss the new development and come out with a stand on the matter.

Korodo, however, said that no official of the two oil workers labour unions was authorised to speak on the new pump price as announced by the government.

The Federal Government on May 11, announced a new price regime for petrol with the highest price of N145 per litre.

The Petroleum Products Pricing Regulatory Agency (PPPRA) said in Abuja that the new price regime had taken effect from May 11.

The NNPC, however, advised its retail stations on the outskirts of major cities to sell at prices lower than N145 per litre.

(NAN)

Biodun Shaiban: Dear Buhari, As The Minister Of Petroleum, You Haven’t Helped The People

Posted on April 8, 2016 by Staff Reporter

Dear Mr President, I want to believe you are comfortable and enjoying life wherever you are (you have been globetrotting lately). Your daily activities are definitely not hindered by the several forms of hardship most ordinary Nigerians face.

You may have forgotten now that you are in Aso rock (heaven on earth) that most houses, offices and businesses in Nigeria depend on generators for their power supply and vehicles for their movements. Those machines inevitably require fuel. Life is currently very hard for most of us. We cannot even carry out our day to day activities anymore. It is needless saying this affects the economy significantly. As the minister of petroleum, you are squarely to blame for this.

History is currently repeating itself again. Just like Ex President Obasanjo before you (he globetrotted too) who assigned to himself that same role of minister of petroleum. You may want to review Obasanjo’s performance in that ministry. After several increases in the pump price of fuel, spending billions of naira on turn around maintenance (TAM) of antiquated refineries and subsidies (funds enough to have built new modern refineries). The results were abysmal despite that he had 8 good years to have fixed the sector.

Nigeria till date still continues to rely on importation of fuel and this should not have been even for a single day. No other OPEC member imports fuel, they only export it.

Short and Long term Solutions

For short term, all that is needed to do is massively import the fuel. It is very certain it will be bought. It is cheaper now too anyway (price of crude oil has fallen drastically as you know). If some refineries output cannot meet our demands, simply find more refineries around the globe and import. There is currently too much oil in the world market. How it continues to be scarce only in Nigeria is the eighth wonder of the world.

About the logistic challenges, all the vessels do not have to berth at the Lagos ports. They could berth at other ports around the country so as to make the fuel circulate faster. And to reduce congestion at the Lagos ports, pipelines or any other medium including a vessel could be used to convey a huge volume constantly to the Atlas Cove depot and moved to Mosimi depot where tankers can load and distribute around the country.

For long term, we need more new and modern refineries with utmost urgency. There is no other way to go about this. It is only the Dangote refinery being built (that was not even actualised by your administration). That is not good enough after one year of election into office (I counted from march, 2015). The best time to have built more refineries for Nigeria is yesterday, the second best time, though late, is today. You have been meeting with officials in both public and private sectors since you were declared the winner of the election so I want to believe you hit the ground rolling. But we still have not heard till date other plans to build more modern refineries for the country let alone commencement of the design and construction. Not even issuance of licences to investors.

The four refineries in existence are obsolete from all indications and gulp far too much money. Besides, such businesses should be handed over to the private sector. Your administration should engage investors to build refineries. It is doable. If there are any issues hindering the investors, fix it for them. Just do it. All government needs to do is properly regulate and make sure citizens are not charged exorbitantly.

Team expansion

I know you made yourself the minister of petroleum because you mean very well for this country. Sadly, good intentions alone do not fix issues. Only good and pragmatic actions do. With the current security, economic and other issues you are battling with, it is obvious you are not overseeing the affairs of the petroleum industry yourself on a day to day basis as expected of the minister of petroleum. That makes the minister of state, Emmanuel Ibe Kachikwu, the de facto minister and overlord. He is trying but he can do far better. But no matter how fierce a dog is, he cannot watch over two houses at the same time (You may want to apply that to Babatunde Raji Fashola too, the Minister of power, works and housing).

Kachikwu is definitely overwhelmed. He also needs a better can-do attitude. Saying he is not a magician and thereby cannot fix our problems overnight is insensitive to our plight. He has not been there just for a night, or has he ? The petroleum industry is vast. It has up and down streams and a wide range of diverse players and stakeholders. Mr President, you need a bigger team to solve the problem of the petroleum industry. People of somewhat equal footing with Kachikwu and not subordinates who will be his yes-men, need to be in this team to freely engage and brainstorm.

Lack of Policy ?

It seems you have no concrete policy and therefore no goals to achieve in this sector (in fact, in other sectors too). If you have them, a year is enough to have them formulated and announced. Restructuring (or unbundling) of NNPC is not a prerequisite for building of refineries as that is the only major announcement we have got which may even yet be only symbolic and have no substance.

The problem (fuel scarcity) is well established and identified so I think you have at least one major goal to attain in this sector. And that is to make sure before the end of this your 4 year tenure, fuel importation will be a thing of the past in this country. And yes, 4 years is definitely more than enough to build new refineries even from the conception stage. There are more than enough financial and human resources in this country alone to do that let alone tapping from global resources. If after this tenure and we will still have to import fuel, it means you have failed Nigerians at least in that sector. You should know fully by now the multiplier effects that will have on the national economy and security. It will create employment in multiple folds and also help our foreign exchange reserves. A significant part (above 40%) of our foreign exchange goes into importing fuel.

We voted for a change from the 16 regressive years of the PDP administration. You seem to be toeing their path too. We need you to come up with concrete policies and plans (of course with a timeline) and start implementing them. That is the only way you will toe a different path. A year after your election is enough to have done that. As a popular active citizen will say “this is not a note of impatience; it is a reminder of a ticking clock”.

You do not have forever to rule us, besides we the citizens have suffered far too much and need succor as soon as possible. Thank you.

You can engage the writer on twitter via his handle @beeshaiban or email: biodunshaiban@gmail.com

Views expressed are solely that of author and does not represent views of www.omojuwa.com nor its associates

PPMC Floods Abuja With 186,000 Liters Of Fuel

Posted on March 4, 2016 by Staff Reporter

As a way of rescue to the current fuel scarcity in the country, the management of Pipelines and Product Marketing Company, PPMC, in line with the honourable minister of state for petroleum, Dr. Ibe Kachikwu’s effort to provide an effective intervention, has flooded Abuja with 31 high capacity truck loads of PMS- each with approximately 60,000 litres- just as another 25 is expected tomorrow. The 31 intervention trucks that have arrived the city of Abuja have been deployed to areas of need. This became possible following the partnership between NNPC Retail and Capital Oil and Gas. In addition, 150 trucks have been provided by A. A. Rano, Azman, and Rahamaniyya. According to the MD, PPMC Mrs. Esther Nnamdi-Ogbue, these interventionist efforts will continue until the queues dissipate. Furthermore, despite not being a regulator, PPMC has made an extra effort to curb the effect of the fuel crisis on the general public by deploying staff to petrol stations across Abuja for round-the-clock monitoring. It is believed that with these measures, normalcy will return to Abuja and its environs in no time. Motorists are therefore advised for the umpteenth time not to engage in panic buying as this will encourage the activities of hoarders.

Credit: vanguardngr

PPMC Says Fuel Will Soon Be Available

Posted on February 29, 2016 by Staff Reporter

The Pipelines and Products Marketing Company has asked the Nigerian populace to calm down as petroleum products will be available in the fuel stations soon.

The MD of PPMC, Esther Nnamdi-Ogbue said that about four vessels containing 30,000 tonnes of PMS arrived in the country on Sunday and the agency is doing all it can to ensure that the product is distributed efficiently.

Queues returned to the fuel stations in the last week and many motorists have been complaining about the seeming worsening situation in fuel supply.

Credit: ChannelsTv

‘Stop Panic Buying!’ – NNPC tells Nigerians, says there is enough Petrol to serve the whole country

Posted on February 22, 2016 by Staff Reporter

Following queues in some Fuel stations in Lagos and Abuja, NNPC has asked Nigerians to stop panic buying as there is enough Petroleum supply to serve the whole country.

Nigerian Army Busts Boko Haram Fuel, Ammunition Supply Chain

Posted on February 10, 2016 by Staff Reporter

The Nigerian Army said it ambushed Boko Haram insurgents and killed a number of them while transporting fuel and various calibre of ammunition to their hideout.

A statement by the spokesman of the Nigerian Army, Sani Usman, said the troops, while on operation at a cattle market on Wednesday morning, intercepted the insurgents and seized the supplies.

“In continuation of their clearance operations of remnants of Boko Haram terrorists in the North East, troops of 212 Tank Battalion, 29 Task Force Brigade, early this morning laid an ambush on some Boko Haram elements at a major cattle market in Gwai Mainari around Mainok general area.

“The ambush party supported by a Quick Response Group (QRG), captured a Hilux vehicle containing 8 jerry cans of petroleum, oil and lubricants, large quantity of 7.62mm ammunitions, 127mm ammunitions and 4 AK-47 rifles, as well as 5 hand grenades.

“Some of the terrorists were killed while others escaped with gunshot wounds.

“It is important to note that more operational strategies are being employed to further flush out the remnants of Boko Haram terrorists wherever they might be hiding in the North East,” the statement said.

Credit: PremiumTimes

Fuel Pump Price: PPPRA To Sanction Defaulting Filling Stations

Posted on January 2, 2016 by Staff Reporter

The PPPRA has vowed to sanction any filling station found flouting government’s directive.

The Assistant General Manager/Head of Operations, PPPRA, Mr. Victor Shidok, threatened that the agency would withdraw licences of defaulters.

Shidok, who led a team from the PPPRA to monitor the level of compliance with the directive in Abuja, warned that the government would not tolerate any deviation from the new directive.

He said the monitoring, which was simultaneously going on across the country, was done in conjunction with the DPR to ensure that Nigerians were not shortchanged.

Shidok stated that there was 100 per cent compliance as at press time in the city centre, but noted the team had yet to reach the outskirts where he feared that there might be challenges with regard to total compliance.

He said, “The challenge may likely be in the outskirts. All those we have visited say they have received directive from their head offices. We are in touch with the leadership of oil marketers in the country. This is a nationwide exercise.”

The Petroleum Product Pricing Regulatory Agency on Tuesday announced that retail filling stations belonging to the Nigerian National Petroleum Corporation would from Friday, January 1, 2016, sell petrol at N86 per litre, while other oil marketers would sell the product at N86.5 per litre.

The PPPRA Executive Secretary, Mr. Farouk Ahmed, had stated that the reduction in the price of the commodity was due to an implementation of the revised components of the petroleum products pricing template for PMS and House Hold Kerosene.

NNPC To Announce 85 Naira Fuel Pump Price In January

Posted on December 26, 2015 by Staff Reporter

Minister of State for Petroleum, Dr. Ibe Kachikwu says the NNPC will announce a pump price of 85 naira per litre of petrol in January 2016.

Dr. Kachikwu said that the new pump price is according to a PPPRA template which he signed off on Wednesday which will be the first reflection of the price modulation that will kick off fully in the petroleum sector by January 2016.

Dr. Kachikwu, who took a tour of the refineries in Port Harcourt on Christmas Day, said that the price modulation is to help ensure the fluctuation of prices to reflect the realities of the crude oil market.

He, however, said that all efforts were being made to get the refineries to start up to 60% production also in January that will supply about 11 million litres of petrol daily.

“If you look at the new PPPRA template that we developed and which I just signed off two days ago, when it is announced you will find out that for now (and I use the emphatic word of the President ‘for now’), the price of the refined product will actually be lower than 87 naira, It will be 85. We will probably announce that in January if the prices hold.

“What that does for you is that its modulating. If it goes up you move up, if it comes down you come down. So we take away the fact of having to go find funds to pay for these subsidies that we cannot afford.

“More importantly we try to be as close to the pump price that we have now as possible,” he said.

Credit: ChannelsTv

Buhari Apologizes To Nigerians Over Fuel Scarcity, Says Pump Price To Remain At N87

Posted on December 22, 2015 by Staff Reporter

President Muhammadu Buhari on Tuesday apologised to Nigerians over the continued fuel scarcity being experienced across the country, blaming the long queues that have returned to fuel stations on the activities of speculators and those resistant to change.

Buhari further promised Nigerians that there would be no increase in the pump price of petrol.

He made the pledge following fears by Nigerians that the Federal Government may scrap fuel subsidy which will result in an increase in the cost of the premium motor spirit, popularly called petrol.
Buhari, while addressing a joint session of the National Assembly during the presentation of the 2016 budget of N6.08 trillion, said the pump price of petrol will remain at N87 “for now”.

“Indeed tough decisions must be made but this does not mean that we would increase the level of pains being felt by Nigerians,” he added.

Credit : Daily Post

NUPENG Decries Lingering Fuel Crisis, Kicks Against Subsidy Removal

Posted on December 16, 2015 by Staff Reporter

NIGERIA Union of Petroleum and Natural Gas Workers (NUPENG) has reaffirmed its aversion to oil subsidy removal, insisting that such a move can only be carried out when government has fully effected the complete turn around maintenance of four refineries to enable them produce optimally.

While vowing that the union would resist anti-people policies from the Federal Government, President of NUPENG, Igwe Achese, said, the refineries when put in use would cushion the hardship subsidy removal would have on the people.

In a related development, oil workers have alleged that the revised Petroleum Industry Bill (PIB) due for presentation to the National Assembly contains anti-labour provisions.

President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Francis Johnson, who stated this yesterday at the union’s 4th triennial delegates’ conference, explained that oil workers will resist any provision that promotes job losses.

In a 10-point communique issued at the end of the National Executive Council (NEC), meeting held in Port Harcourt, Rivers State, NUPENG attributed the cause of the perennial fuel scarcity to the manner the Federal Government managed the subsidy, stressing that the union was watching how the policies were implemented.

He said: “The union condemned in its entirety the perennial and persistent fuel scarcity in the country and the hardship imposed on the masses, especially at this festive period.

In the circumstance, the NEC in session calls on the Federal Government and NNPC to flood the market with petroleum products to arrest the current prevalent fuel scarcity in the country.
“The current way and manner the subsidy issue is being managed is responsible for the fuel scarcity experienced across the country”, he added.

Credit: Guardian

FG To Import 26 Cargoes Of Fuel For Christmas– PPMC Boss

Posted on December 2, 2015 by Staff Reporter

The Managing Director of Pipeline & Product Marketing Company (PPMC) says the government plans to import 26 cargoes of Premium Motor Spirit (PMS) which equates to about a billion litres.

Speaking on Channels Television’s Sunrise Daily, Mrs Esther Nnamdi-Ogbue said that “we are doing that for the yuletide period so that all Nigerians would have the assurance that fuel would be available when they drive into any filling station”.

Talking about the issue of middlemen in contributing to the major lock jam, the PPMC MD said that “we have talked to the marketers and we heard unofficially that they have to buy products at higher rate than depot prices.

“We have gone to the security agents because if you don’t have evidence, you can’t build up the case.

“We are also working in the depots to see how to gather evidence so that we can prosecute one or two people. We have a fixed depot price which is N77.66 Kobo PMS and if they sell above that, it means they are distorting the economy which is an economy crime”, she explained.

Credit: ChannelsTV

NNPC Urges Nigerians To Report Cases Of Hoarding, Sale Of Fuel Above Official Price

Posted on November 16, 2015 by Staff Reporter

The Nigerian National Petroleum Corporation (NNPC) has advised the general public to report cases of hoarding and selling of fuel above the official pump price by its outlets accross the country.

The Managing Director of NNPC in charge of retail, Mr Ladipo Fagbola, made the call in Abuja on Monday.

He said that NNPC was monitoring activities of its retail fuel stations to check sharp practices among them.

Fagbola noted that given the large volume of fuel supplied in the country, NNPC would ensure that Nigerians received the best services at the fuel stations.

He urged Nigerians to report fuel stations which engaged in hoarding of petroleum products and selling above the official pump price of N87.

He said the NNPC had made available some hot lines to receive complaints from members of the public.

He urged members of the public to contact the corporation and report sharp practices on the hot lines 08057008021, 08052195801 and 08100941174.

“When you get to NNPC retail stations and you see things that are not right, please call these lines, take photographs of whatever you see is wrong and send it upline,’’ he said.

Oladapo urged Nigerians not to hesitate to contact NNPC in the event of any sharp practice.

It will be recalled that on Friday, NNPC at a news conference, said it dispatched 656 million litres of fuel across the states of the federation.

The corporation, which decried the long queues at the fuel stations, said an additional 756 million litres of fuel were being expected by the end of November.

(NAN)

Fuel Scarcity Looms Over Non-Payment Of Subsidy

Posted on November 4, 2015 by Staff Reporter

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

Air Force Strikes Terrorists’ Vehicle Workshops, Fuel, Ammunition Dumps In Sambisa

Posted on October 27, 2015 by Staff Reporter

The Nigerian Air Force says its alpha jets have successfully carried out air strikes and destroyed the Boko Haram’s vehicle workshops, fuel and ammunition dumps all within the Sambisa forest.

According to the Director, Air Force Public Relations and Information, Commodore Dele Alonge, this is part of a renewed drive to further degrade the Boko Haram terrorists’ assets.

He said that the effort was as a result of a painstaking Intelligence, Surveillance and Reconnaissance (ISR) efforts by the Unmanned Aerial Vehicle (UAV) and ATR-42 platforms.

According to him, the air strikes on the insurgents would pave the way for the final onslaught by the land forces to meet President Muhammadu Buhari’s directives to bring insurgency in the north-east to an end by December.

Credit: ChannelsTV

Chichi Ikebuiro: Finally, A President Who Gives A Damn

Posted on September 7, 2015 by Staff Reporter

As I asked him what he thought about the recent appointments made by President Buhari thus far, my barber glared at me with a cross between disdain and Fury. Boss, he said, I swear nothing concern me and appointments as you dey see me so(For me though, I know that in the end, we’d have federal character and competence as has been assured by Mr President- A win- win for Nigeria and Nigerians).

Baba , he continued, it is a giving that my daughter’s school fees would be paid with no hassles when they resume this September. You can’t imagine how much I have saved from not having to fuel my generator for the past three to four months. I have not had it this good! I pray this trend continues so life can be easy for me ,Otitan.

Believe it or not, this is the general feeling across the country. I have always said that with constant power supply, at least 50% of the problems facing this country would be solved. The effect the stability of electricity has brought to Nigeria has had a positive effect on both the rich and the poor.

Like it or not, we have the emergence of the no nonsense President Buhari to thank. This new honcho emerged, and everybody just whipped into line. You see in Nigeria, most people know what is right and have the capability to do same, but when impunity reigns from the top, when the body language of the honcho is uncircumspect, scoundrelism reigns, period. This new Honcho made it clear that malfeasance is a no no from the get go and everybody understood and conformed.

As regards the appointments, I’d say we have been too quick to judge. I’d appeal that we wait till all the appointments are made before we begin to make conclusions. This President I believe is putting the right pegs in the right holes. How I know? I had an issue with only one of the appointments, that of Hamid Ali as the head of customs because I thought it would discourage career officers until I had a discussion recently with a friend who is in that system.

The noisomeness that goes on there according to this fellow is killing. The stench starts right from the top and it is easier for a camel to pass through the eyes of a needle than finding an upright person in the rank and file of the honchos there. This is not me talking folks! Some of them like the fact that a no nonsense outsider has been brought to head that sector. It is believed Colonel Ali would come clean that stable in no time and leave.

Not long ago, the four refineries we had were on their knees and all of a sudden they are on the mend. Coincidence? I hear tales of turn around maintenance done by the previous administration being the reason for the sudden resurgence of our refineries. That, brethren is a lie from the pit of hell and here is why. With the sleaze around allocation of crude to these refineries as well as that around crude swap, there is nothing a million turn around maintenance could have done.

The feculence of the previous administration was legendary! Again, the no nonsense Honcho we have today has made everybody conform. Finally a president we can trust and believe.

At last, President Buhari has declared his assets and from what we’ve seen, there is no disputing the fact that we have a modest man at the helm. A man who is not greedy. This is a huge breakaway from the norm. Not long ago there were those who did not give a damn about asset declaration. Today we have been blessed with someone who not only gives a damn, but is determined to make those who do not , do.

This country has been milked dry over the years and we the people have been left for dead. No one gave a damn about you and me, but today just look at what’s going on ala blockage of leakages. On this the CBN governor had this to say, “It is true that Mr President, based on his insistence that leakages must be blocked, there have been serious attempts to block leakages both in Naira and in dollars. Some funds have been trapped in banks and that is the reason there is a vigorous effort to ensure that we all embrace the Single Treasury Account where all revenues collected must come to the centre and after all the revenues have come to the centre, then based on the budget that has been approved for any agency of government, whatever is due to them to meet their operational expenses would be given.

“But first point is that all revenues must come to the centre. In the course of these, yes, I can confirm that there were leakages that have been blocked and as a result we have seen some funds trapped in some areas now coming into the center and that is part of the reason you see the reserves build up.” Need I add more? It’s never happened in this clime!

When President Buhari moved the command center of the military to the base of the Infidels-Boko Haram, I along with so many others thought it was a good move and knew from then on that we, in the end, will win this war. If you take a closer look, you’d realize that today there is a renewed effort against Boko Haram. You’d notice that the capability of our soldiers have been enhanced. You’d realize that finally there is an “added impetus and renewed vigour”, what with the recall and re-instatement of over 2000 soldiers who I believe were dismissed because they spoke up against the impunity in the then run-of-the-mill Military.

It’s just a hundred days Nigeria and to be honest there is this renewed feeling of hope. It is evident Nigeria is in capable hands and is headed in the right direction. At this rate, something tells me that in the end we’d beg baba to run for presidency again after four years. Whether he accepts is matter of discussion for another day but for now, keep calm and let Baba.

Chiechefulam Ikebuiro

Chiechefulam.ikebuiro@gmail.com

@thalynxis

Views expressed are solely that of author and does not represent views of www.omojuwa.com nor its assocaites

Petrol Dealers: We Can’t Sell At N87 Per Litre

Posted on July 14, 2015 by Staff Reporter

The Petroleum Dealers and Owners Association in Ondo and Ekiti States monday declared that it cannot sell fuel at the government approved price of N87 per litre.

The position of the association, was expressed at a news conference addressed by members against the sealing of their stations by the Department of Petroleum Resources (DPR), for selling fuel above the government recommended price.

Addressing journalists, the Chairman of the association, Mr. Jimi Oladapo, said due to non-availability of products at the depots of the Nigeria National Petroleum Corporation (NNPC),
members had been sourcing products through other means with attendant cost.
The dealers said rather than forcing them to sell at unrealistic price, the federal government should deregulate the downstream oil sector to enable them sell at appropriate prices.

According to the petroleum dealers true cost per litre of petrol varies from the source.

Specifically, Adedapo said total cost per litre of fuel from Lagos ranges between N104 and N108 while the landing cost per litre from Ogara/Warri in Delta State is between N105 and N108.00 per litre.

He said the landing cost is exclusive of operating expenses such as diesel to run the station, staff salaries and wages, strategies, office and pump maintenance.

“From the analysis, you will agree with us that it will be impossible for us to sell at the government approved price of N87 per litre,” he said.
Adedapo also disclosed that even when NNPC gives out fuel, the cost to them at their stations are above N89 per litre.
“One wonders how as businessmen with responsibilities can sell below cost price. The ordinary law of supply and demand will not allow it,” he said.

Adedapo lamented that despite their plights as highlighted, the regulatory authorities most especially, the Department of Petroleum Resources (DPR), in Akure rather than facing the reality of the situation, have resulted to sealing of stations in Ondo and Ekiti States and vowed not to open until they complied with directives of selling at the government recommended price.

“Rather than running our stations at a loss, since most of us are on loan from financial institutions, we have resolved not to procure the products until it is readily available at NNPC depots,” he said.
The petroleum dealers said the so-called subsidy was nothing but fraud, saying it had become a conduit pipe through which nation’s resources are being siphoned.

“Let the marketers go and source for the products, if this is done fuel cannot be up to N87 and it will further go down to about N50 due to the falling crude oil price.

“Everybody knows that kerosene is being subsidised, but how many people get it to buy at N50 per litre recommended price.
“We want members of the public to help us tell the federal government to remove the fuel subsidy so that we can sell fuel at appropriate price and remain in business. subsidy is a fraud,” Adedapo stated.

He therefore told the people of Ondo and Ekiti States to prepare for the hard times on fuel supply because they cannot sell below the cost price, saying if the landing cost from NNPC depots is N89, how would they sell at N87?

Source: ThisDay

FG Slashes Import Licenses To Oil Marketers From 43 To 29

Posted on July 13, 2015 by Staff Reporter

The Federal Government has issued licenses to import refine petroleum products to 29 marketers in a bid to end the fuel scarcity witnessed across the country.

The third quarter approval for import allocations to 29marketers signaled a significant reduction in the number of marketers previous issued with such allocations.

Previously, 43 marketers were given import allocation but the significant reduction may be seen as a way of blocking leakages in oil andgas sector as promised by President Muhammadu Buhari.The 29 marketers include the Nigerian National Petroleum Corporation (NNPC) which in the last couple of months struggled to sustain supply.

It was gathered that the approval was given by President Muhammadu Buhari to the Petroleum Products Pricing Regulatory Agency (PPPRA) to allow NNPC and other oil marketers to import fuel into the country this quarter.

The third quarter import allocation is thought to be around 1.6 million metric tonnes of petrol, a source in PPPRA disclosed.

NNPC,NIPCO Plc, Oando Plc, Conoil, Mobil Oil, Masters Energy, Techno Oil and Folawiyo Oil and Gas, Total Nigeria Plc and Mobil Oil Plc are some of the companies granted imported allocations.

Although the PPPRA was yet to issue an official statement on the third quarter import allocation, another source in PPPRA said the agency now expects major oil marketers to resume importation of petrol after extracting a promise from the government that outstanding claims on subsidies will be paid.

An industry source who pleaded anonymity confirmed the allocation to the Tribune Online in a telephone conversation.”We got our allocation on Friday and I’m sure there are 29 of us as against the previous 43 marketers issued licenses to import,” he said.

Fuel Scarcity To Continue As Importers Run Out Of Bank Credit!

Posted on July 6, 2015 by Staff Reporter

The scarcity of refined petroleum products, especially petrol, may continue across the country for the unforeseeable future because marketers have stopped importing the product due to the reluctance of the banks to provide them with credit.

It was also learnt that as of May 29, 2015, the amount being owed all the oil marketers by the Federal Government was N291.7bn.

Our correspondent gathered that the refusal of the banks to provide credit to the marketers had adversely affected the business of some of them, as many were already contemplating leaving the venture.

Sources in the sector, who spoke with our correspondent in Abuja on Sunday, said that the refusal of
the banks to provide additional loans to the marketers could be due to the Federal Government’s delay in paying the huge subsidy debt being owed the fuel importers.

Although they admitted that the Nigerian National Petroleum Corporation was currently the sole importer of petrol, the quantity of fuel being consumed in the country was so high that the NNPC might not be able to handle it solely.

“Banks are refusing to give some marketers loans to import petrol and they are hoping that the present administration will intervene, particularly by paying the huge subsidy debt, because the NNPC alone may not be able to shoulder all the fuel need of Nigeria,” an official at the Federal Ministry of Petroleum Resources, who spoke to our correspondent on the condition of anonymity, said.

Confirming this, the Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, told our correspondent that members of the group were not importing petrol again, because the banks had yet to open credit lines to them.

Anambra Indigenes Suffer Over Closure Of Filling Stations, As Petrol Sells For N500 Per Litre

Posted on July 2, 2015 by Staff Reporter

Anambra people are currently not in a happy mood as fuel now sells for N500 per litre in the state. This is due to the closure of most filling stations in protest over what they described as high levies imposed on them by the state government. In order to protest the high levies, most filling Stations shut down leading into fuel scarcity in the state.

Black market sellers however resulted in selling theirs at N500 per litre for those who can afford it, a situation the indigenes have described unbearable.

It is said that the state government had imposed a ‘huge’ levy on owners of filling stations, which they must pay annually and that is what they are kicking against.

Fuel Scarcity Returns in Nigeria, As Marketers Ration Products

Posted on July 2, 2015 by Staff Reporter

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.”

Marketers Assure Availability Of Fuel Next Week

Posted on May 27, 2015 by Staff Reporter

Marketers of petroleum products in the country have said the current supply challenge may not end this week.

The marketers also confirmed that loading of petrol had resumed across board with members of the Major Oil Marketers Association of Nigeria and Depot and Petroleum Products Marketers Association driving the exercise.

A marketer said that the Pipelines and Product Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, had pumped in additional product into the system.

But he noted that major marketers had yet to start the importation of petrol. Some of the marketers had resorted to doing overnight loading of the product to further ease the supply.

Read More: Punch

Fuel Scarcity: Lifting Of Petrol Has Commenced

Posted on May 26, 2015 by Staff Reporter

Stakeholders in petroleum sector, at a public hearing by the Joint Senate Committee on Petroleum Resources (Upstream and Downstream), on Monday resolved to mobilise their members for the immediate distribution of fuel across the country.

Senator Magnus Abe, who read a communique signed by the stakeholders after the session, explained that the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, and other stakeholders, who attended the meeting, unanimously agreed to the peace deal, in the interest of the nation.

He said, “We have agreed on the following: first is that the Minister of Finance will give an undertaking to the Major Marketers and Depot Managers that the work of the committee being headed by CBN and PPPR, on the outstanding claims, would be concluded and be reflected in the hand over notes to the incoming administration.”

The Senator said the Major Oil Marketers Association of Nigeria had agreed to begin lifting of petroleum products nationwide within the next six hours and to also pay the National Association of Road Transport Owners, the transport cost that would be determined by them.

He added that the Depot Managers had agreed to open all their depots nationwide so that lifting would commence and had agreed with the DPR to withdraw the operational licence of any depot which was not opened for fuel lifting.

Abe said the NNPC had directed all relevant staff, working in the various depots across the country, to work 24 hours, including Saturday and Sunday, for the next two weeks until normalcy returns to the sector.

He also explained that following the intervention of the Group Managing Director of the Nigerian National Petroleum Corporation, the strike embarked upon by several labour unions had been called off.

Keep calm Nigerians, fuel is coming to the filling station near you!

Fuel Scarcity: Black Marketers Source Product From Cotonou

Posted on May 25, 2015 by Staff Reporter

The lingering scarcity of petroleum products in the country which has caused petrol to be sold at between N4,500 and N5,000 per five litres has forced Nigerians to source the product from Cotonou.

NAN reports that the country which is the world’s sixth largest oil producer has been in fuel crisis for more than two weeks.

On Monday, petrol sold for between N4,500 and N5,000 per litre along the Lagos-Badagry Expressway as black marketers claimed they sourced the product from neighbouring Cotonou in the Republic of Benin which is not an oil producing country.

NAN also reports that hundreds of passengers were stranded at bus stops while vehicle owners groaned under the high price of the products occasioned by the ongoing strike by petroleum marketers.

A petrol hawker, who identified himself as Simpson Samuel, told NAN that he bought five litres from Cotonou and resold it for N5, 000 in Lagos.

“I purchased this fuel for 800 Cedis a litre, which is equivalent of N3,500.

“We have been at filling stations along this Badagry road, but we did not get fuel. Some of our colleagues directed us to Cotonou and that is where we bought these ones.

“Many people who have also gone there cannot buy because of the rush by our people,” Samuel said.

NAN reports that in other parts of Lagos, some black marketers sold between N5, 000 and N6, 000.

At a filling station located at the Agric bus top, along the Badagry Expressway, fuel was sold for N300 per litre.

Mr Francis Johnson, General Secretary, Petroleum and Natural Gas Senior Staff Association (PENGASSAN), advised the incoming government to declare a state of emergency in the oil and gas industry.

Johnson attributed the leakages in the nation’s revenue to the importation of refined petroleum products.

He added that the situation was creating jobs for the nations Nigeria was importing the refined product from and causing unemployment for Nigerians.

According to him, the continued importation of refined petroleum products was putting the Naira under pressure and creating social problems for the economy.

He said that there was the need for stakeholders to meet and fashion out a strategy to be adopted in stopping the importation of petroleum products.

NAN reports that the Chairman of Capital Oil, Mr Ifeanyi Uba, had on Sunday promised to release 13 million litres fuel which amounts to of 400 tankers of fuel.

He also promised to release 70 million litres subsequently, while denying knowledge of the ongoing strike by petroleum marketers and tanker drivers.

Uba said it was sad that Nigerians, especially those that provided healthcare service were suffering because of the scarcity.

Meanwhile, banks and other financial institutions have announced that they would close business at 1:00 p.m. because of the situation.

The telecommunications companies have also announced closure of some of their services from today till the situated improves.

NLC Faction Threatens Nationwide Strike Over ‘Chronic’ Fuel Scarcity

Posted on May 24, 2015 by Staff Reporter

235

The Comrade Joe Ajaero faction of Nigeria Labour Congress (NLC) has described the chronic fuel scarcity being experienced across the country as war against the citizens and a conscious attempt to subject millions of Nigerians to economic suicide.

Subsequently, the faction has threatened to direct its members to embark on an indefinite strike action should the scarcity continue unabated.

According to a statement issued today and signed by the NLC Deputy President, Comrade Issa Arem?u, the labour union averred that, “Nigeria is the only country on earth which unacceptably and criminally denies its citizens basic sources of energy; fuel and electricity?”.

It, however said it was time all Nigerians stopped agonizing and rose in unison against this “agony capitalism??”.

Hike In Price Of Food, Transportation As Fuel Scarcity Spreads In NIgeria

Posted on May 24, 2015 by Staff Reporter

Residents in most Nigerian states are facing hard times, as the scarcity of fuel has triggered hike in the price of food commodities and transport fare.

In Kaduna State, service stations are currently selling fuel between 130 and 150 Naira per litre.

The development has brought untold hardship to residents who are now appealing to the relevant authorities to address the problem.

In Lagos State, a litre of petrol sells for over 300 Naira, leading to huge hike in the price of food items. Transport fare has doubled or trippled in some cases. In some areas of the Lagos State, the amount the commuter pays depends on his bargaining power.

The price of food items has doubled, with sellers willing to see their perishable items lose value than to sell at the old price.

In Lokoja, Kogi State capital, few service stations sell the product between 120 to 150 Naira.

One of the service stations at Nataco that had fuel sell for 130 Naira per liter. Commercial buses that must refuel in the state, had no choice but to buy.

Professor James Adeosun told Channels Television that the high level of corruption in the oil and gas sector led to the difficulties that Nigerians were facing.

In different states, most commercial vehicle owners now patronise the black market, as it has become difficult to get the product at service stations.

The fuel scarcity in the oil-rich nation has lingered for about four months now, with residents experiencing the worst moments. There is no end in sight of the problem, as most service stations are shut.

Motorists and those who do their daily business with petrol complain of spending their fortunes to get the product officially put at 87 Naira per litre.

The black marketers, who had stored the product and are now selling, are ripping off residents by selling at high prices. Some residents have resorted to buying the product for their daily activities in spite of its exorbitant rate.

The scarcity had been linked to the demand by petroleum marketers for full payment of their outstanding subsidy owed by the Nigerian government.

Fuel marketers are insisting that they will not lift petroleum products except the Federal Government pays them their balance.

But one of them, Capital Oil, is defying the directive, pushing out 15 million litres. If the company sustained supplies, in the next nine days, 135 million litres would be available for consumers.

Meanwhile, the Nigerian National Petroleum Corporation is also discharging 36 million litres currently, as the corporation attempts to cushion the effect of the scarcity on Nigerians.

Sad! Woman Dies After Childbirth Due To Fuel Scarcity

Posted on May 24, 2015 by Staff Reporter

How sad!

Source: LIB

‘We Have No Money To Import Fuel’ — Marketers

Posted on May 24, 2015 by Staff Reporter

There are indications that the current fuel scarcity may not abate unless the Federal Government pays the outstanding N200m reportedly being owed the oil marketers as subsidy claims.

The oil marketers, who confirmed to our correspondent that they had stopped importation, said they could not continue with fuel importation as result of inadequate funds.

They spoke through the Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore.

Olawore, along with the Nigeria Union of Petroleum and Natural Gas Workers, also denied the report that they were on strike.

He said they were still waiting for the Federal Government to call them to another roundtable on how
to pay the N200bn fuel subsidy owed them.

Olawore said, “We are not on strike. People are just painting us the way they want. We are not importing because we don’t have the money to buy the products. The government has not invited us. The only thing we have heard is the resolution of the Senate on Thursday and I think that they are going to invite us soon.”

Out of N356.2bn subsidy the government reportedly owed oil marketers, the Ministry of Finance paid the sum of N156bn about two weeks ago.

With about five days to the handover of power to a new administration at the federal level, tanker drivers in the country have also stopped lifting fuel from the depots, leaving many filling stations without the product and others selling at exorbitant prices.

The General Secretary, NUPENG, Mr. Isaac Aberare, said tankers drivers would start lifting the product as soon as they received the directive to do so, insisting that they were not strike.

He said, “If there are products in the depots, we will go there and load. Remember that the Lagos State Government gave tankers drivers 48 hours to leave the road instead of clogging the whole road and making navigation difficult; we have complied with that instruction. Any time there are products, we will go and load.”

In its response to the lingering fuel scarcity in the country, the Senate on Thursday directed its Committee on Petroleum Resources (upstream and downstream) to commence a full investigation into the causes of the persistent fuel crisis.

The directive was made following a motion by the Deputy Senate Majority Leader, Senator Abdul Ningi.

Ningi said, “We need to know whether fuel scarcity has come to stay. We need to know whether it has become part of our lives. We need to plan.

“By planning and talking about it, we are now sensitising Nigerians to brace for the impending issue of fuel scarcity whether it is going to be here permanently or it is temporary.”

Source: The Punch

Oil Blocks Sale: PENGASSAN, NUPENG Shut Down Oil Facilities Nationwide

Posted on May 19, 2015 by Staff Reporter

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) have directed employees of the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), to shut down indefinitely their locations and all oil production facilities nationwide in a bid to force the minister of petroleum resources, Mrs. Diezani Alison-Madueke and the federal government to reverse the transfer of operatorship of OMLs 42, 40 and 30.

THE WILLS also reports that the assets were previously operated by Shell.

The directive to shut down the facilities was issued yesterday by the executive councils of the PENGASSAN and NUPENG.

A petroleum industry source with knowledge of the development told the online medium that all branch chairmen of the powerful unions have been directed to fully implement the directive starting from tomorrow, May 20, 2015.

The unions are aggrieved that the sale of the assets did not follow due process and would affect the fortunes of the NPDC and its workers.

Mr. Emeka Offor’s Elcrest Exploration and Production Nigeria Limited, a joint venture company of Eland Oil & Gas Plc, was awarded the operatorship of OML 40, while Mr. Ernest Ezedialu Obiejesi’s NECONDE is the operator of OML 42.

Sources in the sector say three flow stations have already been shut down in the creeks of the Niger Delta ahead of tomorrow’s total shutdown.

Nigeria is the largest producer of crude oil in Africa with an estimated daily production capacity of 2.2 million barrels per day.

BUSTED!!! Boko Haram Food, Fuel Supplier Nabbed

Posted on May 4, 2015 by Staff Reporter

The Nigerian military said it has arrested a man who specialises in supplying food and fuel to Boko Haram insurgents in the North Eastern part of Nigeria. The culprit, the military said, was arrested Sunday morning in Daban Shata, in the suburbs of Baga, Borno State’s third largest community.

The Defence Headquarters spokesperson, Chris Olukolade, in a statement said the supplier, wanted by the military, was eventually nabbed in the early hours of Sunday morning. He said the culprit is currently undergoing interrogation as the military continues its offensive against the insurgents in the north-eastern part of the country.

The arrest and interrogation may lead to answers to questions that have been asked on how the insurgents were able to fuel their convoy of vehicles and motorcycles with which they carried out their attacks in the past years.

The spokesperson also said 260 women and children were rescued in the outskirts of Chalawa village in Adamawa State. These are separate from the 275 women and children rescued by soldiers from Sambisa forest in Borno who were earlier handed over to the emergency agency, NEMA.

Mr. Olukolade said the 260 rescued were held up while trying to escape from the terrorists. He said soldiers took them back to their various communities in Madagali following normal security profiling.

“Some of them disclosed that they had to abandon their homes to escape from the terrorists when Madagali came under their attack, while others were actually abducted and taken there,” Mr. Olukolade said.

The Major General said some terrorists were killed in an encounter with troops who caught up with them as they fled prior to the recovery of the women and children. Some of the terrorists, however, escaped with varying degrees of gunshot wounds. Others who were captured are now being interrogated by intelligence officers.

Mr. Olukolade added that a machine gun, some rounds of ammunition, and some motorcycles and bicycles were also captured from the terrorists. A member of the vigilante group serving as guide to the troops was, however, wounded. He said operations in Sambisa forest are continuing.

Credit: premiumtimesng

Fuel Crisis May Linger Despite Government’s Pledge To Pay Marketers

Posted on April 30, 2015 by Staff Reporter

In spite of Federal Government’s efforts to restore normalcy in fuel supply, indications are that the crisis may linger for a while, as long queues of anxious motorists continue to build outside filling stations across Nigeria.

On Wednesday, Minister of Finance, Ngozi Okonjo-Iweala, said at the end of the Federal Executive Council meeting in Abuja that ?the ?g??overnment was ready to pay the marketers the outstanding N156 billion debt in order to remove all bottlenecks in the smooth distribution of fuel in the country.

The current crisis, which worsened over the weekend, has been blamed on the National Association of Road Transport Owners whose members withdrew their services to the Major Oil Marketers Association of Nigeria over alleged N21 billion debts.

MOMAN is the umbrella group for the six major oil marketers, including Oando, Conoil, Forte Oil, MRS, Total and Mobil Oil, which control more than half of the fuel distribution outlets in the country.

NARTO had directed its members to halt further lifting and transportation of petroleum products from the depots to the six marketing firms’ retail outlets till the outstanding debt, accumulated since December 2013, were fully settled.

The National Union of Petroleum and Natural Gas workers affiliate is insisting they do not have sufficient funds to continue loading and transporting petroleum products for major marketers.

Though NARTO said they were still servicing the NNPC Retail, and other independent marketers as well as the Depot & Petroleum Products Marketers Association, all filling stations belonging to the six major fuel marketers in Abuja and environs were out of stock since Monday.

However, MOMAN said it would not be able to pay its debt to NARTO unless the Ministry of Finance fulfilled its promise to its members to settle the foreign exchange differential and interest charge on loans covering the period 2013 and 2014.

The Executive Secretary of MOMAN, Obafemi Olawore, said government had reneged on assurances by Mrs. Okonjo-Iweala in February to settle the N256.2 billion outstanding debt.

Mr. Olawore said since the release of N100 billion after the meeting with its members in February, no other payment was made.

He said its members were afraid the in-coming administration may not pay them on assumption of office.

The Executive Secretary of the Petroleum Products Pricing Regulatory Agency, Farouk Ahmed, said on Wednesday he was instructed by the Minister of Petroleum Resources met with officials of NARTO on Monday to reassure them of government’s readiness to pay the debt.

He said during the meeting attended by the Minister of State for Finance, Bashir Yuguda, the marketers were told that government had approved the payment of the import charges differential of N56 billion to them.

The PPPRA scribe said additional N100 billion in sovereign debt note issued by the Debt Management Office a month ago would also be released to the marketers as it matures on April 30.

“The DMO has already sent messages to the marketers to submit their account details for the payment to be transferred to them,” Mr. Ahmed said. “Our hope is that the marketers will pay NARTO their N21 billion as soon as possible so that the issue would be resolved.”

According to the PPPRA boss, the problem was not with stock of petroleum products, as the NNPC has sufficient stock at the depots, apart from several imported cargoes yet to be discharged at the ports.

“The problem is with the outstanding payments,” Mr. Ahmed said. “Resolving the situation depends on how fast the marketers sort out their disagreement with the marketers and restore their services. The PPPRA and petroleum and Finance ministries have done all that is possible to resolve the crisis as soon as possible.”

Source – Premium times ng

FG To Pay Outstanding Allowances To Petroleum Marketers In 24 Hours

Posted on April 29, 2015 by Staff Reporter

It appears the long wait at fuel stations may soon be reversed as the Federal Government says it will be paying petroleum marketers the sum of 156 billion naira.

Minister of Finance, Dr Ngozi Okonjo-Iweala, who spoke with reporters in Abuja, said that all outstanding payments to the marketers will be resolved as well.

She appealed to them to bear with the Federal Government as it tries to prioritise its policies in the face of dwindling revenues.

Buhari Cannot Reduce Fuel Price To N40 Per Litre- IPMAN

Posted on April 20, 2015 by Staff Reporter

358

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that the incoming administration of General Muhammadu Buhari cannot reduce the price of petrol to N40 per litre. The Chairman of IPMAN in Ogun State Adeleke Bada made this disclosure shortly after the association’s Annual General Meeting held in Abeokuta.

He said the ongoing issues in the industry could not make such development realistic while reacting to a recent statement credited to former Minister of Petroleum Resources, Tam David West who said the President-elect, Gen. Buhari would reduce the pump price to N40. He, however said the price could be reversed to N87 per litre if the Federal Government builds refineries in some parts of the country.

Queues Thin Out At Petrol Stations In Abuja

Posted on March 6, 2015 by Staff Reporter

Queues have started to thin out at petrol filling stations due to the availability of the product in Abuja.
The News Agency of Nigeria (NAN), reports that many filling stations were seen serving few motorists on the queue in Abuja on Friday.
NAN also reports that the stations were selling the product to motorists at the official price of N87 per litre.
At the Conoil Filling Station in the Central Area, an attendant said fuel scarcity would soon be a thing of the past as they had sufficient fuel to dispense to the public.
The attendant said some motorists spent up to 10 hours on the queues days back before they could buy fuel but can get petrol now in less than one hour.
One of the motorists at the station, Malam Yahaya Mohammed, said the situation had been getting better as the queues were receding in the city.
Another motorist at a petrol filling station in Area 1, Mr James Adamu, commended the Federal Government for resolving the differences between the government and the marketers.
Adamu advised the government to always resolve issues ahead of time and not to allow it go to this extent.

Other stations visited included those in Berger Junction, Area 10, Central Area, Asokoro, Maitama and other parts of the metropolis.
A commercial driver, Ade John, said the scarcity had negatively affected his business as he had had to spend a whole day on queue to get fuel and even bought from the black market sometimes.
One of the black marketers, Yakubu Yusuf, said 10 litres of petrol went for N2,500 when the scarcity was acute but that the price crashed to N1,500 on Thursday when the commodity became available.
NAN recalls that the Federal Government had promised to pay N30billion to the oil marketers for the losses they had recorded due to devaluation of the naira. (NAN)

NNPC Set To Import 1billion Litres Of Petrol In March

Posted on March 3, 2015 by Staff Reporter

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.