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Tag: Fuel Scarcity

  • NNPC speaks on rumoured fuel hike, scarcity

    NNPC speaks on rumoured fuel hike, scarcity

    The Nigerian National Petroleum Corporation (NNPC) has advised motorists and other petroleum products consumers to disregard trending rumour of a planned hike in the pump price of Premium Motor Spirit (PMS).
    NNPC in statement by Group Managing Director, Mallam Mele Kyari, at the National Assembly Thursday did not suggest any plan to increase the price of the white product.
    NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, clarified that what the NNPC GMD stated during his engagement with the Senate President, Distinguished Senator Ahmed Lawan, at the National Assembly yesterday was that the price of petrol was abysmally low in Nigeria compared to what obtained in neighbouring West African countries.
    Ughamadu noted that Mallam Kyari had observed at the event that the huge disparity in the pump price of petrol between Nigeria on the one hand and her neighbouring country, on the other hand, tended to encourage cross-border leakages, as he sought the support of the leadership of the National Assembly to curb the malaise of smuggling.

    He advised Nigerians from all walks of life to disregard the insinuation of a plan hike in the price of petrol by NNPC, saying statutorily, NNPC was not even in a position to regulate the price of petroleum products, advising that NNPC role as an operator must be differentiated from that of any of the Industry regulators.
    The NNPC spokesperson stated that as directed by relevant agencies of the Government, the pump Price of petrol remains N145 per litre.
    NNPC cautioned petroleum products marketers not to sell petrol above N145 per litre following the disclaimed rumour.
    NNPC advised Nigerians to remain vigilant and volunteer information to the Department of Petroleum Resources (DPR), the Industry regulator, or to any law enforcement agency around them, on any station which sells petrol beyond N145 per litre.

  • IPMAN, NUPENG address mounting fuel scarcity, assure of sufficient product

    IPMAN, NUPENG address mounting fuel scarcity, assure of sufficient product

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), and National Union of Petroleum and Natural Gas Workers (NUPENG), have urged Nigerians to stop panicking over fuel scarcity as there is sufficient product.

    The duo said this in separate interviews with the News Agency of Nigeria (NAN) on Saturday in Lagos against the backdrop of the ongoing fuel scarcity in the country.

    The association confirmed that about six vessels of imported petrol ordered by the Nigerian National Petroleum Corporation (NNPC) were currently discharging the product, assuring that the corporation has sufficient products.

    Mr Chinedu Okoronkwo, the National President of IPMAN, told NAN that there was no need for panicking over fuel scarcity, as virtually all the NNPC depots across the states had commence loading of petroleum product by marketers.

    ‘’Marketers are currently loading petrol in Makurdi, Kano, Enugu, Aba,Yola, Suleja, Kaduna, Ejigbo, Mosinmi, Ibadan and other depots across the country.

    ‘’The shortfall in distribution was due to slow pace of product importation and hitches at the jetty which had been addressed.

    ‘’But the Federal Government is on top of the situation, there is enough of petrol to go round. I have also instructed all our members to ensure adequate distribution of the product across the country.

    “I have also directed them to ensure product is sold at official price of N145 per litre. If there is any issues on distribution and pricing differentials, members should call the secretariat for further action.

    ‘’The Petroleum Product Pricing Regulatory Agency (PPPRA) template has not changed, so, no marketer should influence hike or sell above official price,’’ he said.

    Okoronkwo reaffirmed the commitment of the association toward supporting the Federal Government’s efforts on effective and efficient distribution of petroleum products across the country.

    He stressed further that IPMAN had so far reached an agreement with other marketers for better synergy in making the product available in the country.

    “IPMAN which controls 80 per cent outlets, has more advantage in distributing and dispensing in both urban and hinterlands in the country.

    “In line with the Federal Government’s efforts at ensuring efficient petroleum products distribution across the country, IPMAN members have opted for a seamless distribution of petroleum products,’’ he said.

    He noted that such synergy amongst members with the Federal Government, would present a common front that would advance the interest of the group and ensure smooth distribution of the products across the country.

    Mr Tayo Aboyeji, Chairman, Lagos Zone of the National Union of Petroleum and Natural Gas Workers (NUPENG), also colloborated the IPMAN’s president, saying “there is enough fuel, Nigerians should avoid panic buying’’.

    Aboyeji said that “there is fuel and it is available, as I am talking to you now, some of the depots have received the products and are already loading.

    “What is happening was panic buying, people think there might be price increase from government or removal of subsidy.

    “But nothing of such, government has assured us that no increase in petrol pricing for now, so, Nigerians and marketers should avoid being panic over fuel scarcity.

    “I urge Nigerians and motorists to avoid storing of petrol at home because it’s dangerous for us, fuel is available, I have visited some depots and I can confirmed to you that loading is going on.

    ‘’As at Friday, we have instructed our tanker drivers to engage in 24-hours loading activities and lift products from depots to filling stations across the country.

    “We will ensure 24-hours service delivery of product distribution in the country, we also urge government to checkmate activities of the task force in Lagos and along Ibadan expressway.

    “Our members are being extorted and harassed by members of the task force. Some drivers who were scheduled to load in Lagos were denied asses to Lagos, which also affects effective distribution of products,’’ he said.

    Alhaji Debo Ahmed, the Chairman, Western Zone of IPMAN, however attributed the ongoing queues at some stations was due to shortfall in NNPC distribution network to depots.

    Ahmed said that all depots within the South-West zone were loading at a low pace due to insufficient products.

    “We have lots of pending tickets from marketers awaiting loading at depots but were still stranded.

    Also, Alhaji Ayo Alanamu, the Chairman, IPMAN Ejigbo Satellite depot, attributed the challenges to shortfall of the product from NNPC.

    Alanamu said that marketers, IPMAN and NNPC retails battled with 40-trucks on daily basis which was not sufficient.

    He urged government to expedite action toward importing more products to avoid another round of scarcity that had ended.

    He noted that depot owners were also contributing to the scarcity due to the hike in pricing.

    NAN recalls that on April 12, NNPC said trending social media report of an impending fuel scarcity due to purported refusal by some oil marketers to lift products from depots was false.

  • Fuel scarcity: DPR seals 4 filling stations in Warri

    The Warri Zonal Office of the Department of Petroleum Resources (DPR) on Monday sealed four petrol stations in Warri over sharp practices.

    The Warri Zonal Operations Manager, Mr Yusuf Sule disclosed this to newsmen shortly after an unscheduled visit to some petrol stations in Warri.

    Sule, who led the surveillance team, said the stations were sanctioned for hoarding, under-dispensing and over-pricing, adding that over 11 stations was visited.

    He said that some of the petrol stations were compelled to dispense at the government approved pump price of N145 per litre.

    “We sealed four petrol stations over various offences bordering on under-dispensing, over-pricing and hoarding.

    “We also compelled the marketers to dispense fuel at the regulated pump price of N145 per litre,” he said.

    The manager advised petroleum marketers not to buy the product above the ex-depot price of N133.28k, noting that it was not an excuse for them to sell above the official pump price.

    “The law says sell petrol at N145 per litre and anything contrary to that should be avoided.

    “If you must remain in business, you must play according to the rules of the game.

    “The marketers should stop buying at exorbitant prices. We asked them to provide evidence to enable us to address the fundamental issues right at the depots.

    “As we speak, no one has come forward with evidence, so they should buy at the ex-depot price or they will continue to be at loggerhead with the DPR,” he said.

    Sule said that the regulatory agency would continue to enforce compliance.

    Most of the marketers, however, in their response said they bought at between N167 and N175 per litre at the depot.

     

  • Scarcity: What we are doing to clear fuel queues – Kachikwu

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Thursday, said the Federal Government is doing all it can to clear queues in filling stations, especially in the Abuja metropolis.

    The minister also said he has directed the Nigerian National Petroleum Corporation (NNPC) to ensure that petrol queues were cleared in Abuja before Sunday.

    Kachikwu gave the directive at a world news conference to intimate journalists on the upcoming international oil and gas conference and exhibition tagged the Nigerian International Petroleum Summit (NIPS).

    According to Kachikwu, the queues have been persistent because logistics and policy issues that could end the scarcity are largely unaddressed.

    “I can tell you behind the scenes, a lot of meetings are taking place because the fuel queue issue is both logistics and policy issues.

    “We will need to address fundamental policy issues to enable it go away especially in the area where the pricing is showing differentials between the landing and sales price.

    “The president is obviously very committed to keeping the price of petrol at where it is because he realises and sympathises with the sufferings of Nigerians.

    “I will hate for my colleagues to come and see the fuel queues so my directive to NNPC would be to get these queues out of Abuja.

    “The NNPC is working round the clock on this; if you remember when this first started in December, it was a lot more massive.

    “Lagos is fuel queue-free and a lot of the state capitals are. Abuja is still struggling because of the logistics issues.

    “I haven’t gone round today but when I went round yesterday there was a huge improvement and I will be instructing the NNPC to do whatever it takes to ensure there are no queues next week.

    “Quite frankly, they will have to do whatever it takes to get this eliminated in Abuja.

    “That is the directive I will be sending to the NNPC and let them work night and day to put a lot more efforts in trying to do this,’’ Kachikwu said.

    The minister urged Nigerians to be patient about the fuel situation as there was a lot of “efficiency re-engineering’’ going on.

    He said the maiden NIPS conference, which would begin on Feb. 18 and end on the feb. 23, will help Nigeria’s oil and gas industry to build its capacities and competitiveness.

    On the recent rebound of Shale oil, Kachikwu explained that the bullish price rise that the oil market witnessed on the back of production cuts agreements did not worry Organisation of Petroleum Exporting Countries (OPEC).

    He said the slight drop in crude oil prices was not enough for OPEC to become reactionary.

    “In terms of the price, I don’t think we need to be panicky about it; we hit an all-time 70 dollars per barrel in December which was a surprise to all of us.

    “We are not ruffled by it, I know it has come down to highest 60 dollars now.

    “Shale has got to be active and we know whenever we are in excess of 65 dollars, Shale gets very active because the fundamentals become much more supportive to Shale investments.

    “I’ve always said that OPEC needs to just focus on itself and what it needs to do, and forget what is happening in Shale.

    “Every OPEC producer must work hard to be a least cost producer because the truth is that if Shale can produce at 65 dollars, there is absolutely no reason why we should be struggling.

    “So, upper 60 dollars is not too bad; we moved from 27 and 28 dollars; let’s not begin to complain, it is a bit too early. These things fluctuate,” Kachikwu explained.

  • Refine crude locally to end embarrassing fuel scarcity, Dogara advises FG

    Speaker of the House of Representatives, Hon Yakubu Dogara, has advocated for local refining of crude oil to make fuel available and easily accessible to all Nigerians, saying every other measure to put an end to the recurring problem of fuel scarcity will work temporarily which he described as embarrassing.

    The Speaker made this known when he received the executive members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), in the National Assembly.

    Hon Dogara said while consultation is ongoing on the part of leadership at different strata, the results will only achieve temporary relief until refineries are functioning enough to refine crude locally to meet the demand of Nigerians.

    He said, “Unless we are able to refine crude locally, we will never be in a position as a nation to say bye to fuel scarcity and that is the truth. Anyone who thinks we can depend on importation and still solve this problem is deceiving himself.

    “You see, when you import, you are depending on so many variables. These variables are not within your control and anything can happen along the line that may result in this. The solution is to refine crude locally and end this shame once and for all.

    “The final solution will be to refine this crude, put it in the filing station and say bye to fuel scarcity.”

    The speaker also called for capacity building for workers to discharge the responsibility to yield optimal results.

    While thanking PENGASSAN for taking the right path by engaging with legislators on areas of concern on developments in the petroleum sector, he noted that dialogue between citizens in the form of associations, unions and civil society groups, and the legislature, will deepen the process of democracy by making the government more responsive to their demands.

    Hon Dogara also assured them that the House and the Senate are jointly working on the remaining components of the Petroleum Industry Bill to ensure that their passage are expedited. He also advised them to take the opportunity of the joint public hearing of both petroleum committees of the National Assembly to make their input to the Bill.

    Earlier, president of PENGASSAN, Comrade Francis Olabode Johnson, commended the House for its effort at ensuring accountability and transparency in the oil and gas industry, as well as the National Assembly for passing the PIGB.

    He said the fuel scarcity Nigerians are experiencing is embarrassing and urges the House to collaborate with them on finding a sustainable way to end the crisis and prevent a resurgence by revamping and rehabilitating the nation’s refineries with timelines and strategies that will lead to adequate and sustainable crude supply.

    The PENGASSAN president also asked that all encumbrances associated with importation of refined products into the country should be addressed along with enhancement of infrastructural facilities, while appealing to the lawmakers for support for initiatives that will lead to job creation and improved security.

  • End recurring fuel scarcity in seven days, NASS tells NNPC

    A Joint Committee of the Senate and House of Representatives on Petroleum Resources on Wednesday directed the Nigerian National Petroleum Corporation (NNPC) to end the lingering fuel scarcity within seven days.

    The committee also asked the Nigeria Customs Service and other security agencies, especially those at the borders, to halt the alleged diversion of fuel to neighbouring countries.

    The Chairman of the Senate Committee on Petroleum Resources (Downstream), Kabiru Marafa, gave the ultimatum after a closed door meeting.

    The meeting was preceded by another meeting with the Group Managing Director of the NNPC, Maikanti Baru, and other officials of NNPC.

    The lawmakers demanded explanations from the NNPC on the lingering shortage and the return of the queues.

    Senator Marafa was said to have described the situation as embarrassing and acknowledged that though NNPC tried to end the shortage during the yuletide, the return of the queues in Lagos and Abuja showed that the problem was not completely over.

    Marafa was said to have insisted: “This situation has lingered for too long. The public are suffering and when they are suffering, we cannot sit and say all is well.

    “At a point, you told us the problem has been solved; we also saw that the queues disappeared for some time, but unfortunately, they have returned.

    “You even went round stations, monitoring the situation, but you have been unable to resolve the issue. In any situation, when your best is not good enough, it is very bad and most unfortunate.”

    He told the NNPC to brief the committee on the reasons for the resurging long queues; what it had been doing to resolve the challenge and how long it would take for the queues to disappear completely.

     

  • Days of fuel scarcity over, Baru assures Nigerians

    The Nigerian National Petroleum Corporation, NNPC, on Tuesday assured Nigerians that there would no longer be fuel scarcity which had caused unbearable queues for Nigerians.

    The Group Managing Director of the corporation, Maikanti Baru said this in Abuja at the 2018/2019 crude oil term contract bid opening.

    According to him, the opening of bids is an indication of President Muhammadu Buhari’s drive for transparency and accountability in the conduct of government business.

    He condemned the recent fuel shortage, which lasted a month, describing the corporation’s downstream counterparts as ‘unpatriotic’.

    Although the fuel scarcity has ended in major Nigerian cities, filling stations in many towns outside Abuja now sell petrol at about N200 per litre against the N145 official price. The NNPC chief did not, however, speak on this.

    “I am happy that this problem has been dealt with and the few pockets of non-compliance have been tackled.

    “It was unfortunate that due to the behaviour of a few bad eggs, the Christmas was a pain. We hope you will never be part of this incident and we also hope this type of thing never happens in the future.

    “NNPC is determined that this year there will be no fuel shortage. Definitely we have seen the last of it,’’ Mr. Baru said.

    Mr. Baru warned those that would be selected after the bid against indulging in sharp practices.

    He said NNPC’s focus was to enhance production volume, while ensuring that the “best value is realised through competitive marketing of our crude grades to international refineries and graders’’.

    “In line with this aspiration, NNPC is collaborating with key stakeholders to improve the overall security of our production sites, crude export lines and other critical oil and gas infrastructure’’.

    He urged the bidders not to patronise fraudsters who promise off takers selection assistance.

    Speaking with journalists shortly after the bid ceremony, Mr. Baru said the evaluation would take three to four weeks, adding that 16 per cent of the crude was going to North America.

    NNPC GMD, Maikanti Baru in a brief interview with State House Correspondents today (Photo taken by Sani Tukur, 29/12/2017)

    Also speaking, Mele Kyari, the Group General Manager, Crude Oil Marketing Division said “there would be no lobbying in lifting programmes’’.

    “It is fully automated. The customer knows where and when they get their lifting and this is unparalleled.’’

    Kyari said part of the procedure was that the companies selected must have a net worth of about 250 million dollars, turnover of 500 million dollars, letter of credit and years of experience.

    The News Agency of Nigeria reports that 254 companies are bidding for the off take of Nigerian crude grades as against 224 in 2017.

    This round is the third call for bids under the present administration.

     

    (NAN)

  • Fuel scarcity: 4,501 loaded petrol tankers disappeared in December – NNPC

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru said 4,501 petrol trucks were simply untraceable, vanishing from the Nigerian radar, during the biting fuel supply crisis.

    “Due to massive diversion, hoarding, panic buying and smuggling, coupled with the information that three Direct Sales Direct Purchase Consortia had rejected October cargoes, there was insinuation of a supply gap,” he said Thursday at an investigative public hearing by a Joint Senate and House of Representatives Committees on Petroleum Downstream, at the National Assembly Complex, Abuja.

    Baru disclosed that during the period, NNPC could not track the movement of 4,501 trucks representing the quantity of the disappeared products.

    According to him, the nation lost about 148,533,000 million litres of fuel to the suspected diversion during the December fuel crisis.

    The NNPC GMD listed some of the key factors which were responsible for the crisis to include insufficient reserve, clearance speed, supply gap, diversion, hoarding, panic buying and smuggling.

    He noted that prior to the crises, NNPC had 1.9 billion litres strategic reserve of Premium Motor Spirit (PMS), which would have lasted for 53 days but that due to panic buying, diversion and hoarding, the Corporation was unable to cope with the daily nation consumption of 37 million litres of PMS, which led to the presence of long queues at petrol stations across the country.

    He however said that NNPC took some urgent steps to resolve the scarcity which included but not limited to the immediate activation of war room, additional imports to increase days sufficiency, 24-hour operations in all NNPC Depots and mega stations; sustained media and stakeholders engagements; increased monitoring, surveillance and sanctions as well as production at Kaduna and Port Harcourt refineries put at 3 million daily.

    Baru also used the opportunity to call on the Petroleum Products Pricing Regulatory Agency (PPPRA) to review the pricing template and landing cost.

    He also asked the National Assembly to approve outstanding subsidy payments and debts to marketers.

  • Invest more in modular refineries to end fuel scarcity, IPMAN advises FG

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Tuesday advised the Federal Government to invest more in modular refineries as a way to end fuel scarcity.

    Its Chairman, South-west zone, Alhaji Debo Ahmed, gave the advice in an interview with the News Agency of Nigeria (NAN) in Lagos.

    Vice President Yemi Osinbajo only two days ago in Lagos, confirmed that 10 modular refineries were at advanced stages of development in the Niger Delta.

    The 10 modular refineries are located in five out of the nine states in the Niger Delta.

    The states include Akwa Ibom, Cross River, Delta, Edo and Imo states.

    Osinbajo said two of the refineries, Amakpe Refinery (Akwa Ibom), and OPAC Refinery (Delta State), have had their mini-refinery modules already fabricated, assembled and containerized overseas and ready for shipment to Nigeria for installation.

    The total proposed refining capacities of the 10 licensed refineries stands at 300,000 barrels.

    Ahmed said the modular refineries could help address any shortfall in fuel supply pending when additional refineries would be built.

    “It will also boost the country’s revenue generation and address frequent fuel capacity experienced during the yuletide seasons.

    “Our expectation in 2018 is for the government to invest more on modular refineries to be able to have more petrol locally to address scarcity,’’ he said.

    Ahmed said government had performed credibility well in the downstream sector in 2017, adding that it should crown it by building more modular refineries.

    According to him, a modular refinery is cheaper to build and it can move from one place to another.

    “A modular refinery is capable of refining between 10,000 and 35,000 barrels of crude oil per day,’’he said.

    He also urged the government to provide incentives that would attract investors to the oil and gas sector.

  • Presidency summons Kachikwu, Baru, SSS, other stakeholders over lingering fuel scarcity

    The Presidency on Tuesday in Abuja summoned critical stakeholders in the nation’s oil sector and the leadership of security agencies in the country to end the scarcity of petrol in the country.

    The News Agency of Nigeria reports that the meeting, presided by the Chief of Staff to the President, Abba Kyari, is being held behind closed doors.

    The meeting is also being attended by the Minister of Petroleum, Ibe Kachikwu; Director-General of the State Security Service, Lawal Daura; and the Group Managing Director of the Nigeria National Petroleum Corporation, NNPC, Maikanti Baru.

    Others attending the meeting are the Comptroller-General of Immigration, Muhammed Babandede; some presidential aides and other stakeholders in the oil industry.

    President Muhammadu Buhari had on January 1, during a nationwide broadcast, expressed sadness over the unnecessary hardships inflicted on Nigerians during the Christmas and New Year celebrations following acute petrol scarcity across the country.

    He attributed the hardships to the activities of a few but heartless individuals working within the nation’s oil and gas sector.

    Mr. Buhari, however, reiterated the determination of his administration to get to the root of the persistent petrol scarcity, and ensure that whichever groups were behind this manipulated blackmail would be prevented from doing so again.

    The scarcity is said to be caused by greedy marketers who tried to take undue advantage of the high inter-state movements during the season

    NAN, however, observed that the long queues in filling stations in Abuja and Lagos have disappeared in the last two days as promised by the GMD of NNPC, Maikanti Baru.

    Mr. Baru also on Friday vowed that Nigerians would not go into 2018 with the scarcity of petroleum products.

    NAN