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Tag: DPR

  • Forensic audit report indicts DPR for Nigeria’s oil loss

    Forensic audit report indicts DPR for Nigeria’s oil loss

    Nigeria’s huge oil loss estimated at 600, 000 barrels of crude per day has been a major source of concern to the government and stakeholders, prompting an investigation which has now indicted the Department of Petroleum Resources (DPR).

    Historically, Nigeria has been the largest exporter of oil in Africa, despite a lack of infrastructure that has hindered the country from being able to export at 100 per cent capacity.

    But in recent times, oil production in the country fell from 1.4 million barrels per day (bpd) at the start of 2022 to 900, 000 bpd as of September, plunging the country to fourth place among largest oil producers in Africa, behind Angola, Algeria and Libya.

    The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari, claimed 600,000 barrels of crude oil produced per day were unaccounted for, owing largely to oil theft.

    However, a forensic audit conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), discovered that between January 2020 to November 2022, 40 per cent of the volumes of crude oil losses in Nigeria are due to measurement inaccuracies and not theft.

    Chief Executive Officer of the NUPRC Gbenga Komolafe, also said that Nigeria was currently flaring about 10 per cent of gas produced, in a country where the cost of 12.5kg of cooking gas is about 40 per cent of the N30, 000 minimum wage.

    Komolafe further disclosed that agents of the commission will henceforth, assume responsibility for the deployment and maintenance of metering facilities across Nigeria’s oil and gas establishments, for transparency in hydrocarbon accounting.

    “The reform measure adopted by the commission offers a paradigm shift from the trajectory in Nigeria’s hydrocarbon measurement since oil was discovered in Nigeria in Oloibiri in 1956 and is aimed at ensuring that no one becomes a judge in his own case,” he said.

    The DPR is responsible for maintaining records on petroleum industry operations, particularly on matters relating to petroleum reserves, production, exports, licences and leases.

    It also monitors the Petroleum Industry operations to ensure that are in line with national goals and aspirations including those relating to Flare down and Domestic Gas Supply Obligations.

    Nigeria Extractive Industries Transparency Initiative (NEITI), had also previously accused the agency of failing to install meters at wellheads and the lack of capacity to monitor deep offshore, thereby making it difficult to ascertain the exact amount of crude oil produced in the country.

    However, DPR’s Head of Public Affairs, Paul Osu, insisted that every litre of crude produced in the country was adequately captured during the process of extraction.

    Osu explained that the DPR had launched the National Production Monitoring System (NPMS), as part of efforts to boost crude accounting process from production to export.

    “NPMS is an online platform for the direct and independent acquisition of production data from oil and gas facilities in Nigeria and enables DPR to exercise surveillance, perform production monitoring and data analysis for utilisation and forecasting,” he said.

  • FG scraps DPR, PEF, PPPRA; announces takeover agencies, CEOs

    FG scraps DPR, PEF, PPPRA; announces takeover agencies, CEOs

    The Federal Government has scrapped the Department of Petroleum Resources (DPR), Petroleum Equalisation Fund Management Board (PEF[M]B), and Petroleum Product Pricing Regulatory Agency (PPPRA).

    As a result, the government announced the transition of the now-defunct DPR, PEF(M)B, PPPRA to the newly introduced agencies and their chief executives with respect to the Petroleum Industry Act (PIA).

    The scrapping of the three agencies was announced by the Minister of State for Petroleum Resources, Timipre Sylva, a statement from the ministry revealed.

    “The new agencies are the Nigerian Upstream Regulatory Commission, as well as the Nigerian Midstream and Downstream Authority,” said the statement posted on the ministry’s Facebook page on Monday.

    “The management team comprises Engineer Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Regulatory Commission, while Engineer Farouk Ahmed is the Chief Executive Officer of the Nigerian Midstream and Downstream Regulatory Authority.

    “H.E. Timipre Sylva charged the new chief executives to be up and doing in their respective areas, in order to ensure that there is a smoother, fuller actualisation of the PIA.”

    Before the latest development, the DPR monitors fuel stations across the country to ensure products are not hoarded, among other functions while PEF(M)B is the special intervention put in place by the government to ensure products are sold at approved prices.

    PPPRA, on the other hand, is saddled with the responsibility to determine the pricing policy and regulate the supply and distribution of petroleum products, among others.

    TheNewsGuru.com, TNG reports that President Muhammadu Buhari on August 16, signed the PIA to replace the obsolete Petroleum Act of 1969, after several years of pressure on successive administrations to enact the law.

    Two days later, he approved the setting up of a steering committee chaired by Sylva to immediately commence the implementation of the Petroleum Industry Act (PIA). The committee has a duration of 12 months for the assignment.

    President Buhari, in a letter dated September 16, asked the Senate to amend the PIA, saying the request became necessary after he reviewed the administrative structure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission.

    He listed the three areas of the Act he sought to be amended to include the appointment of non-executive board members, removal of the Ministries of Petroleum Resources and Finance from the boards of the two institutions, as well as the appointment of executive directors.

  • DPR to enable NNPC to deliver value to Nigeria – Auwalu

    DPR to enable NNPC to deliver value to Nigeria – Auwalu

    The Director/Chief Executive Officer, Department of Petroleum Resources (DPR), Mr Sarki Auwalu says the department, as a business enabler, would support the Nigerian National Petroleum Corporation (NNPC) to deliver value to Nigerians.

    Auwalu gave the assurance when a delegation of NNPC management team led by the Group Managing Director, Malam Mele Kyari, visited the DPR, in Abuja, on Tuesday.

    He said that as a regulator, it does not stand to look for faults, rather, it helps operators to deliver on business mandates to boost economic activities.

    “Being a regulator is trying to catch people that you regulate doing something right, not the other way round; it is better for us to come together like you have done today.

    “The most important thing for us is to help operators do something right. Our own is to enable business and create opportunity, and for everything we do, especially for our own company like NNPC, it is to ensure success of the company.

    “This is because the success of the company is the success of Nigeria, and coming together like this is great, and that is why we are excited that the GMD and his team is visiting us, the first in history of this organisation,’’ he said .

    According to him, the move goes down to change the history and to prove that they are all for Nigeria and success of the business of oil and gas in our country.

    He said that working together would encourage transparency and efficiency, adding that it was commitment to business and efficiency that brought the NNPC to a profit company.

    Auwalu commended the GMD for the various landmarks he had created that had helped to transform the operations of the NNPC which history would not forget.

    “Today in the whole world after 44 years, this is the first year NNPC has recovered and declared profit.

    “We are so proud of it and we put our head high in the comity of nations that our biggest corporation in Nigeria is no longer the way it is being seen,’’ he said

    He noted that energy security and availability of gas through the East West pipeline (OB3), Trans Niger pipeline which the GMD was championing would help to tackle poverty in the country.

    He thanked Kyari for making out time to come and visit the DPR and assured him of support of the department to create success in all the corporation was doing.

    “ What we are doing is to guarantee the success and stability of what you have already done.

    “ DPR, looking at the success and strategy you embarked on, had created a platform to help consolidate the assets, the licenses, permits and approvals we have issued,’’ he said.

    He noted that DPR was committed to oil exploration in the country and appreciated effort of NNPC to ensure that more volumes were out to help the country make more money through royalties.

    Auwulu also commended NNPC’s effort to enhance production and encourage new production reservoirs.

    He noted that the reserve to production ratio was not equal, adding that the profit declared by NNPC had opened a floodgate for investors to the country.

    Responding, Kyari thanked the DPR for the support it had been giving to the corporation, which had helped the NNPC operations.

    He said that the aim of the visit was to demonstrate how high the corporation held DPR and its strategy as a business enabler.

    “The fate of the oil and gas industry rests in the hands of DPR and the NNPC, and by implication, the prosperity of the country rests in the hands of the two organisations.

    “As we go through the journey of transition to deepen gas penetration and monitisation in the country, to ensure that we create new gas industry, to process new oil, everything leads to making sure there is prosperity in the country.

    “Nigerians depend on DPR and NNPC to bring prosperity to this country and therefore as a regulator, you are also the supporter of the National oil company.

    “Your presence is to help the National oil company to deliver value to all of us and for us in NNPC, it is our responsibility to make sure that we comply with every regulation to make sure that we are doing the right thing,’’ he said

    Kyari urged the DPR to continue to enable the NNPC to deliver value to all Nigerians.

  • Why cost of cooking gas is skyrocketing

    Why cost of cooking gas is skyrocketing

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has explained that the reintroduction of value added tax (VAT) on Liquefied Petroleum Gas (LPG), also known as cooking gas, is the reason why the cost of the commodity is skyrocketing.

    TheNewsGuru.com (TNG) reports Mr Bassey Essien, Executive Secretary, NALPGAM, who made this known in Lagos State, said the rising trend in the cost of cooking gas will continue if the Federal Inland Revenue Service (FIRS) and the Federal Ministry of Finance do not stop the VAT policy.

    Recall that the federal government had in 2019 gazetted the removal of VAT on Liquefied Petroleum Gas (LPG), also known as cooking gas, as a product to increase its domestic utilisation.

    Essien, appealing to the Federal Government to reconsider the imposition of Value Added Tax on imported LPG in the country, said the reintroduction of the policy would further increase the prices of cooking gas across the country.

    “It is unfortunate that the Federal Inland Revenue Service and the Federal Ministry of Finance have gone to resuscitate a product that has been exempted and gazetted from VAT.

    “This was gazetted in 2019 and has encouraged domestic gas utilisation.

    “Nigerians are already complaining about the prices of cooking gas across the country and this would further worsen the situation,’’ he said.

    Essien noted that while the government was desirous of expanding its revenue base, it should also consider the impact the reintroduction of VAT on importation of LPG would have in the country.

    “The government has declared the Year 2021 to Year 2030 as the Decade of Gas in Nigeria with the goal of deepening gas utilisation.

    “However, this goal will be defeated if cooking gas goes out of the reach of ordinary Nigerians due to the current increment in prices of the commodity.

    “The price of 12.5kg cylinder of cooking gas is between N6,000 to N6,500 across the country. It was being sold for about N4,000 averagely a few months back,’’ Essien said.

    He said more than one million metric tonnes of gas were consumed by Nigerians in 2020, with about 60 per cent of the product imported by marketers.

    According to him, “we import to augment the 350,000MT allocated to the domestic market by the Nigerian LNG Company Limited.

    “So putting VAT on it simply means that Nigerians will pay more and if we go on this route, the price of 12.5kg might hit N10,000 in some parts of the country by December.’’

    He further noted that some users of cooking gas were gradually reverting to the use of kerosene and firewood with the attendant health implications.

    However, Mr Sarki Auwalu, Director, Department of Petroleum Resources (DPR), said the government had to re-impose VAT on imported LPG to attract investments to local gas production.

    “For me personally, I wouldn’t like us to be importing LPG. This is a country that has over 600TCF of gas. We have proven reserves of 206TCF.

    “If you allow LPG to be imported without any restriction, it means you are not giving opportunity for upstream investors that will drill and get this gas.

    “Nigeria gas is sweet and rich. Sweet means that there is no sulphur. Rich means that it is rich in liquid. Anywhere you see gas in Nigeria, you can extract condensates out of it which is another input to the industry.

    “You can extract propane, then you extract the LPG butane. So it is this LPG butane that they are bringing in because it is easier to go and buy and sell it here, especially with no payment of VAT.”

    According to him, the removal of 7.5 per cent VAT on LPG importation is a discouragement for potential investors in the upstream sector which transcends to double losses for the government.

    “Government is losing through VAT and losing investors which are double jeopardy. So for us, it is a policy to encourage the inflow of investment in the gas sector,’’ he said.

    Auwalu added that initiatives such as the Nigerian Gas Transportation Network Code and the Nigerian Gas Flare Commercialisation Programme were geared towards attracting investments to the industry.

  • Senate urges DPR to enforce ban on illegal cooking gas retailers

    Senate urges DPR to enforce ban on illegal cooking gas retailers

    The Senate has urged the Department of Petroleum Resources (DPR) to clamp down on illegal roadside retailers of Liquefied Petroleum Gas (LPG).

    This, the Senate said was to enhance safety in the country.

    The resolution was sequel to a motion moved by Sen. Ibikunle Amosun (APC-Ogun) during plenary on Tuesday.

    The motion was “On the need to curb the rising cases of gas-related fire incidences, explosions and deaths in Ogun”.

    The upper chamber also urged DPR to step up the clamp down on illegal roadside retailers of LPG who operate without a valid licence or who operate within residential areas.

    The senate equally mandated its Committees on Gas, and Industries to investigate the cause(s) of the recent cases of Gas explosions in Ogun, other states and the FCT.

    This, it said was in order to find permanent and sustainable solutions that would save the lives of the people, and report back to the Senate.

    Moving the motion, Amosun said that natural gas found in abundance in the country had continued to gain acceptance among most homes in Nigeria as it was used for cooking, welding.

    He said that this essential commodity if not well managed and regulated, could be a curse rather than a blessing because of the loss of lives and destruction of properties that were usually associated with it whenever anything went wrong.

    The lawmaker called on regulatory agencies in the LPG to live up to their responsibilities to enforce standards, clamp down on influx of sub-standard cylinders and retailers who dispense adulterated gas.

    The resolutions were all adopted after a voiced vote by the Senate President, Ahmad Lawan.

  • Nigeria concludes marginal field bid round 18 years after

    Nigeria concludes marginal field bid round 18 years after

    The Department of Petroleum Resources (DPR) yesterday concluded the 2020 marginal oilfield bid round, the first successful bid since 2003 when 24 assets were put on offer.

    The process, which culminated in the presentation of letters to the bid winners in Abuja by the industry regulator, started in June last year, with 57 marginal fields spanning land, swamp and offshore put up for lease by the federal government.

    This came just as the Nigerian National Petroleum Corporation (NNPC) yesterday unfolded plans to acquire shares in five more private refineries in Nigeria, bringing to six its interests in refineries it is targeting.

    However, during the bid round, the DPR stated that 161 successful companies were shortlisted to advance to the final stage. Those shortlisted were selected from 591 entities that applied for pre-qualification.

    Marginal fields are smaller oil blocks typically developed by indigenous companies and have remained unproduced for a period of over 10 years.
    Some of the companies, which emerged winners included: Matrix Energy, AA Rano, Andova Plc, Duport Midstream, Genesis Technical, Twin Summit, Bono Energy, Deep Offshore Integrated, Oodua Oil, MRS and Petrogas.

    Others are: North Oils and Gas, Pierport, Metropole, Pioneer Global, Shepherd Hill, Akata, NIPCO, Aida, YY Connect, Accord Oil, Pathway Oil, Tempo Oil and Virgin Forest, among others.
    It was a big win for local oil and gas companies, which had a good outing during the ceremony as 100 per cent of the beneficiaries of the exercise were indigenous entities.

    Nigeria last conducted marginal field bid rounds in 2003, with 16 of the fields now contributing just two per cent to the national oil and gas reserves, a figure the DPR said would be substantially boosted by the latest exercise, worth about $500 million in signature bonuses.

    At the presentation of letters to the winners, DPR Director, Mr. Sarki Auwalu, stated that a total of 591 firms submitted expression of interest forms, out of which 540 were pre-qualified, while 482 were bids submitted by 405 applicants.

    He said: “In the end, 161 companies were shortlisted as potential awardees, out of which 50 per cent has met all conditions and therefore eligible for awards today. We are set to ensure opportunities are extended to other deserving applicants to fill the gap.

    “The DPR is not just a regulator, we are an opportunity house. We drive creativity and transformation and we use these in all of our activities. This is done in the overriding national interest.”

    According to him, the bid will enhance economic growth, increase Gross Domestic Product (GDP) and create employment, while with the experience garnered before now, mistakes of the past will be avoided.

    He said that the desire of the government was for the awardees to hit “first oil” in record time, adding that a technical workshop will be organised with all bid winners for guidance on field development and operations.

    He pledged to support the bid winners to operate within the country’s oil and gas space, urging them to take advantage of the oil and gas centre recently inaugurated by President Muhammadu Buhari.

    “Despite the daunting challenges of the triple force (oil price crash, global pandemic and production cuts) in 2020, which dealt a severe blow on the world market and global economy, the DPR forged ahead with government aspirations for the industry,” he said.

    He stated that the exercise was carried out in two phases, expression of interest and prequalification, as well as technical and financial phase.

    He said the phase one ensured that applicants were subjected to screening of basic documentations such as shareholders’ details, directors, management team, procedures and systems, legal and association status, basic technical capability, financial capability and corporate accountability.
    Auwalu stated that the DPR has now provided opportunities through the marginal field bid round to indigenous operators for wealth creation and economic growth consistent with government’s drive for increased GDP, employment generation and improved revenue.

    “The DPR will continue to follow up and guide the awardees every step of the way. For instance, a guiding template of working agreement has been drafted for joint awardees and discussions have reached advanced stage between DPR and lease holders on the Farmout agreement and other technical enablers,” he added.

    Earlier, the Head, Basinal Assessment and Lease Administration (BALA) of the organisation, Mr. Edu Inyang, said when the exercise was being embarked upon, the objectives were to increase indigenous participation in the oil and gas industry, increase reserves, rev up technological transfer, attract investment and enhance revenue generation.

    He stated that a large part of the objectives had been achieved, with the culmination of the process in the presentation of letters.

    Assistant Director, DPR, Mr. Abel Nsa, in his remarks, said with the revocation of 11 licences, Nigeria was losing a lot of revenue, with taxes and royalties not being paid on the assets, leaving about 40 million barrels unproduced and many opportunities missed.

  • Financial crisis: How DPR rescued Nigeria in April – Sylva

    Financial crisis: How DPR rescued Nigeria in April – Sylva

    The Minister of State for Petroleum Resources, Timipre Sylva on Tuesday revealed that the Department of Petroleum Resources (DPR) rescued Nigeria from a financial crisis by remitting funds to the Federation Account Allocation Committee (FAAC) last month.

    He disclosed this in Abuja during an interactive session with newsmen.

    The Nigerian National Petroleum Corporation (NNPC) had reportedly, in a document attached to a letter addressed to the Accountant-General of the Federation dated April 26, indicated that it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.

    But Sylva explained on Tuesday that since the DPR collected royalties on behalf of the federal government, it was able to fill the vacuum left by the NNPC in contributing to the federation account.

    The minister, who did not mention the exact amount the DPR provided, said revenues from marginal field programmes were of use when the nation was in dire need of funds to share among the federating units.

    “I can’t say what the figure is, but the DPR has always contributed to the federation revenue because they collect royalties, so they’ll continue to contribute.

    “But as to filling the gap, it’ll not always be there because NNPC has not said after not being able to contribute in May, it’ll stop entirely. NNPC has not announced it again. So, we cannot say for how long DPR is going to keep paying,” he said.

    He said the government backtracked on petrol subsidy removal owing to the backlash from marketers when the commodity began to increase in price.

    “As far back as March 2020, we announced subsidy deregulation and we successfully practised it for a few months before some people came in and started threatening when the price was moving up. We had to come back because we’re in a democracy and a listening government, thus, decided to discuss with stakeholders.

    “That was why it looked as if we stepped back a bit, but the deregulation was already announced and a date was taken. We need that understanding. We’ve announced and have not retracted, right now, all we’re doing is to see how we can take all the stakeholders on board before we start practice again.

    “We can see the disadvantage of the continuous practice of subsidy as we’ve gotten to a point where NNPC does not have the money to contribute to FAAC.

    On whether the government was planning to sell the refineries as being insinuated, Sylva said: “We want to make the refineries functional before we can say this is the direction we want to take. We can’t say we want to sell a dead refinery. Can you sell a dead body?”

  • DPR denies revoking 32 refinery licences

    DPR denies revoking 32 refinery licences

    The Department of Petroleum Resources (DPR) has denied revoking 32 refinery licenses issued to private companies in Nigeria.

    Mr Paul Osu, Head, Public Affairs, DPR, made the clarification in a statement on Tuesday in Lagos.
    “We wish to clarify that DPR did not revoke any refinery licence.

    “Refinery licenses, like our other regulatory instruments have validity periods for investors to attain certain milestones.

    “This implies that after the validity period for the particular milestone, the licence becomes inactive until the company reapplies for revalidation to migrate to another milestone.

    “This does not in any way translate to revocation of licence of the company,” Osu said.

    According to him, the DPR in line with the aspirations of the government initiated the refinery revolution programme of the country.

    He said it was aimed at boosting local refining capacity by enabling business and creating new opportunities for new investors with the granting of modular and conventional refinery licenses to investors.

    Osu said the DPR would continue to provide support for investors in the oil and gas industry in Nigeria using its regulatory instruments of licences, permits and approvals to stimulate the economy and align with governments job creation initiatives.

  • DPR addresses Easter fuel scarcity fears

    DPR addresses Easter fuel scarcity fears

    The Department for Petroleum Resources (DPR) has assured Nigerians of adequate supply of petroleum products before, during and after the Easter celebrations, dousing fears of possible fuel scarcity.

    Mr Paul Osu, Head, Public Affairs, DPR made this known in a statement issued on Wednesday in Lagos State.

    The Federal Government had declared April 2 and April 5 as public holidays to mark the celebration.

    Osu said that there was product sufficiency nationwide and advised marketers against hoarding and creating artificial scarcity.

    He said DPR would intensify its monitoring and surveillance of petroleum products outlets to ensure compliance with quality, quantity, integrity and safety of operations in line with its regulatory mandate.

    Osu advised consumers to report any infraction such as under dispensing of products to any DPR office nationwide.

    He also reiterated the DPR’s commitment to safety and advised consumers to observe all necessary safety protocols in the handling of petroleum products, especially at this season of harmattan.

    Osu said the regulatory agency would continue to initiate appropriate initiatives to enable business and create opportunities for investors and stakeholders in the oil and gas industry in Nigeria.

  • DPR begins sealing petrol filling stations for selling above official pump price

    DPR begins sealing petrol filling stations for selling above official pump price

    The Department of Petroleum Resources (DPR) has sealed two filling stations in Gusau for violating its rules and regulations.

    The Operations Controller in charge of Gusau DPR Office, Alhaji Yusuf Shehu, told newsmen of the sealing after a routine surveillance on filling stations in Gusau on Monday.

    Shehu said that one of the two filling stations was sealed for selling petrol in jerry cans, while the other was sealed for selling the product at N185, which is above official pump price.

    “You know few days ago there was rumour that some stations were selling above the regulated price in the state.

    “You know DPR is the regulatory agency in oil and gas industry; our outing today is to ensure that the product is available, not diverted, to ascertain the quality of the product, and check price, as government has said no increase,” the controller said.

    He said that the operation revealed 80 per cent compliance, with most of the filling stations selling between the range of N162 and N165.

    “There was also compliance in safety and quality of the product”, the controller said.

    Shehu called on fuel marketers to desist from hoarding, under dispensing and other irregularities.

    He appealed to the public to avoid panic buying, saying that the department would make sure that the product was available to the people of the state.

    The controller called on them to report any station found selling above the official price range.

    Also, the DPR on Monday sealed four petrol stations in Katsina metropolis for selling product above government approved price.

    Engr. Muhammad Abdulrahaman, Controller in charge of Katsina Field Office of DPR, disclosed this in an interview with the NAN in Katsina.

    Abdulrahaman stated that the stations were sealed following routine surveillance to the stations.

    “We discover that the stations were selling petrol between N170 and N18O per litre as against the government rate of N162 to N165 per litre, therefore, we sealed off the stations.

    “We received intelligence report on the way and manner these stations sell their products to members of the public at exorbitant rates,” he said.

    Abdurahman said that some of the petrol stations were hoarding their products only to sell to ‘black’ marketers at night.

    He also dismissed as untrue insinuations over the increment of pump price of Premium Motor Spirit (PMS).

    “Let me dispel this rumours by some members of the public that government has increased the price of PMS (Petrol), this statement is false.”

    The Controller said that the DPR in Katsina state was committed to ensuring that all filling stations dispensed their products in line with government approved pump price.

    He pointed out that the sealed stations would be fined, adding that failure to pay the fines would lead to the revocation of their licenses to serve as deterrent to others.

    In Enugu, the DPR Field Office in the State sealed eight petrol stations for dispensing Premium Motor Spirit (PMS) above the approved government pump price.

    The Head, Operations, Mr Afam Azuike disclosed this on Monday.

    Azuike, however, said that three out of the affected petrol stations were later unsealed as they reverted to the government approved price of the product.

    He said that the sealing of the defaulting petrol stations followed a public outcry over the weekend that petroleum marketers had arbitrarily increased the pump price of PMS.

    He said that the field office on Monday embarked on an aggressive surveillance in Enugu metropolis during which they inspected 29 petrol stations.

    “We discovered that the major marketers sold between N162 and N175. They complained about the cost of the product at the depot as well as the freight charges from Lagos to Enugu.

    “We are aware that government has not increased the price band of PMS which is on partial deregulation.

    “The current price band is cost reflective, taking into cognizance the international cost of crude oil and cost of importation of refined products,” he said.

    Azuike said that the five that refused to revert would remain sealed and be sanctioned in line with the default regulations.

    The head of operations said that they discovered that several petrol stations were under lock and key, adding that “we do not know whether they have products or not but the surveillance will continue.

    “We noticed that there was panic buying of PMS in Enugu over the weekend but after this surveillance there will be free flow of products in the state.

    “We want residents of the state to know that there is no fuel scarcity in the state,” he said.

    Azuike appealed to commuters not to play into the hands of greedy petroleum marketers and to report anyone selling above the approved pump price.

    “No one should be compelled to buy PMS above the approved pump price. Our office is always open and if you report defaulters we will swing into action,” he said.

    Azuike said that the surveillance would continue in other states in the field.

    PMS scarcity led to a rise in the pump price of PMS in the state in the last four days as some petroleum marketers sold as high as N210 per litre.