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  • Imported Substandard Petrol: A Call for Synergy – By Umegboro and Odeh

    Imported Substandard Petrol: A Call for Synergy – By Umegboro and Odeh

    By Carl Umegboro and Onche Odeh

    WHAT began as the usual queues for fuel that often disappear after a few days lingered for a longer period this time around, leaving Nigerians with many thoughts of what could have been the cause. When the queues approached the third week in January, many Nigerians thought the marketers were up to their usual trick of trying to make a brisk business from their old stock of Premium Motor Spirit (PMS) commonly known as petrol as rumours were rife then that the government was to effectively stop paying subsidy for petrol at the end of the month.

    While Nigerians were trying to get their heads around a fresh reason for the scarcity after the government announced the suspension of subsidy removal, news of the real reason emerged. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the petroleum sector regulator, disclosed that they had to order the shutting down of some filling stations because they had taken delivery of PMS laced with methanol at quantities above Nigerian recommended standard. The move as explained was to purge the affected chain of the bad fuel from the market.

    Upon investigation, the Nigerian National Petroleum Company (NNPC) Limited disclosed that the adulterated petrol was imported into Nigeria undetected by four importers from Antwerp in Belgium, going ahead to also reveal the oil companies that brought it in. However, the four oil companies accused by the NNPC denied the allegation, thereby creating confusion on the crisis. This catastrophe has therefore reinforced earlier appeal by the Standards Organisation of Nigeria (SON) for inter-agency collaboration for effective sectoral standards regulation.

    During a late-night briefing held on Wednesday, February 9, 2022, in Abuja, the Group Managing Director (GMD) of NNPC, Mele Kyari, maintained the position. An interesting twist to the disaster was the failure of quality inspectors to detect the high level of Methanol in the petrol, first at the point of export from Belgium and the point of arrival in Nigeria. Meanwhile, NNPC’s quality inspectors including GMO, SGS, GeoChem, G&G and other inspection agents appointed by the Midstream and Downstream Petroleum Regulatory Authority had certified that the cargoes met Nigerian specifications.

    Explaining why the adulterated petrol missed the eagle eyes of the inspectors, the NNPC GMD said the quality checks do not include checks for Methanol percentage adding that cargoes quality certificates issued at load port in Antwerp-Belgium by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.

    Whatever the reason might be, it has indeed created a very difficult period for Nigerians, as the situation has left many people with damaged vehicles and machines whose operations require the use of petrol as fuel. Conceding to this, the NNPC GMD said, “It is a very difficult period for us, and it is very important to update our customers and members of the general public on the ongoing efforts by NNPC and other stakeholders including you, to resolve the issues generated by the unfortunate supply and discharge of methanol blended gasoline (PMS) in some Nigerian depots.”

    From observation, some remedial actions like quarantine of all un-evacuated volumes and the holding back of all the affected products in transit (both truck and marine) put in place by NNPC since it received the report of the adulterated petrol on 20th January are on course. Earlier in the year, SON announced plans to standardize the nation’s oil and gas sector in its bid to enhance products and services quality attainment in the sector beginning from 2022. To this effect, the Director-General of SON, Mallam Farouk Salim inaugurated a Steering Committee to coordinate modalities for implementing the provisions of SON Act No 14 of 2015 as it relates to the nation’s oil and gas sector.

    Other areas SON would resourcefully offer support towards standardization of the industry include quality management system requirements for the petrochemical, oil and natural gas industry, basic offshore safety induction and emergency training amongst others. From reports, SON DG has tasked the in-house committee to enhance SON’s activities and strategic repositioning in the oil and gas industry to effectively regulate quality and promote international best practices, assuring that the organisation is prepared to overcome challenges that may arise in the course of striving to improve standardisation and quality assurance in the Oil and Gas Sector.

    The imported petrol adulteration incident may have heightened the call for SON to be returned to the ports to complement what other agencies there are doing. Although, a record shows that SON is already collaborating with other regulatory agencies as confirmed by the organisation’s Director, Public Relations, Bola Fashina, the time to step this up is now.

    “SON has been working closely with agencies to ensure compliance to standards. On issues surrounding food and other regulated products, we are working closely with the National Agency for Food and Drug Administration and Control (NAFDAC), on the environment, we are working with the National Environmental Standards and Regulations Enforcement Agency (NESREA), we have a good collaborative relationship with the Nigeria Customs Service and other regulatory agencies in the country. But with the recent event, we are going to speed up our collaboration with other agencies,” Fashina said.

    The hard struggle by NNPC and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to mop up the adulterated petrol from circulation is a sad reminder of the point that has been repeatedly made by the previous and current leadership of SON, the National Assembly and other stakeholders, that ‘it is easier to fight the influx of substandard products at the points of entry than chasing them around all over the country in markets and warehouses, among others.’

    According to statistics, over 75 per cent of the products imported into the country come through the seaports and waterways. Immediate past Chairman of Nigeria’s Senate Committee on Industry, Sam Egwu, emphasized this point with a call for the return of SON to the nation’s ports during one of the committee’s oversight functions to SON’s offices and laboratories in Lagos.

    “Nigeria is import-dependent, with porous borders and for them not to be at the port to inspect these goods first-hand is not good enough. They should be allowed to be at the ports to see these products before they enter the market,” Egwu said.

    This was also echoed by the chairman, House of Representatives Committee on Industry, Enitan Dolapo-Badru, at an oversight visit to SON’s laboratory in Lagos. However, SON has appealed to the National Assembly to support its quest to establish more laboratories in the country, stressing that the agency is inundated with so many goods to certify, monitor and test especially at this time when the African Continental Free Trade Agreement (AfCFTA) has taken full flight. Thus, all hands must be on deck.

     

    Umegboro is a public affairs analyst while Odeh is an environmental analyst.

  • Fuel Scarcity: Minister pushes to overcome supply disruption

    Fuel Scarcity: Minister pushes to overcome supply disruption

    The Minister of State, Petroleum Resources, Chief Timipre Sylva, says the Federal Government and regulatory authorities are making efforts to address fuel scarcity by ensuring that supply disruption is overcome.

    The minister made this known to newsmen on Thursday in Abuja after a meeting with some key leaders in the petroleum industry.

    Sylva spoke shortly after meeting with Malam Mele Kyari, Group Managing Director, NNPC Ltd. and Mr Farouk Ahmed, Chief Executive Officer, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), among others.

    “This kind of supply disruptions are like accidents, they are not desirable, we do not expect them to happen but they happened once in a while.

    “This administration has done well as far as fuel supply is concern. I am quite happy to hear from the NNPC GMD and CEO of NMDPRA on all they have been doing to ensure the scarcity is controlled.

    “From what they have told me, in few days there will normalcy, everybody is putting efforts to ensure that supply disruption is overcome.

    “On my part as Minister of State, I share their commitment to ensure that this problem is totally overcome.

    “From all the figures shown to me the supply is there, so why are they hoarding it, in the next few days we will be able to overcome those unscrupulous elements and make sure products get to Nigerians,” he said.

    On black marketers, he said it was caused by unscrupulous elements, who chose to take advantage of the situation, thereby calling on them to sell rightly.

    According to Kyari, as of this evening, NNPC has up to 1.79 billion litres of Motor Spirit (PMS) on ground and is still continuing 24 hours loading at the depots and selling.

    “We are working with the Premium e regulatory authorities, particularly the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure normalcy,” he assured.

  • Senate confirms Executive Director-nominees of Nigerian Petroleum Regulatory Authority

    Senate confirms Executive Director-nominees of Nigerian Petroleum Regulatory Authority

    The Senate has confirmed the nominations of five Executive Director-nominees of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    The confirmation of the nominees followed the consideration of a report by the Committee on Downstream Petroleum Sector.

    Those confirmed include: Francis Alabo Ogaree, Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure; and Dr. Mustapha Lamorde, Executive Director, Health, Safety, Environment and Community.

    Others were Mansur Kuliya, Executive Director, Midstream and Downstream Gas Infrastructure; Bashir Sadiq, Executive Director, Corporate Services and Administration; and Dr. Zainab Gobir, Executive Director, Economic Regulations and Strategic Planning.

    Chairman of the Downstream Petroleum Sector Committee, Senator Sabo Mohammed (Jigawa South-West), in his presentation, recalled that the Senate on Tuesday, 8th February, 2022, considered President Muhammadu Buhari’s request for the confirmation of the nominees.

    He explained that the President’s request was in accordance with the provisions of Section 34(3) of the Petroleum Industry Act, 2021.

    According to the lawmaker, the Act empowers the President to make appointments into the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) subject to the confirmation of the Senate for a period of five (5) years and may be reappointed for second term and no more.

    Senator Mohammed said that the nominees while appearing before the Committee for screening, responded to a wide range of questions regarding the Petroleum Industry and measures that should be taken to reposition the industry for the benefit of the Nigerian economy.

    “The nominees responded to the questions asked In an intellectual; factual and convincing manner.

    “They exhibited a high level understanding of the challenges, complexities and opportunities inherent in the Petroleum Industry.

    “Their knowledge and experiences will be of great benefit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the oil and gas sector in general”, Mohammed said.

    He disclosed that the Committee did not receive any petition against their nominations, adding that they were cleared by the Nigeria Police Force, Department of State Services (DSS) and posses the Code of Conduct Acknowledgment slips.

    The five Executive Director-nominees were confirmed by the Senate after consideration of the report by the Committee on Petroleum Downstream Sector.

  • Adulterated fuel: How NNPC concealed vital report to throw Nigerians into suffering

    Adulterated fuel: How NNPC concealed vital report to throw Nigerians into suffering

    The Nigerian National Petroleum Company (NNPC) Limited charged with the responsibility of regulating and supervising the oil industry on behalf of the Nigerian government has Integrity, Transparency and Accountability at the centre of its core values, yet failed to immediately take responsibility for the importation of the adulterated fuel that has caused Nigerians unquantified economic and social hardship.

    The NNPC admitted on 20th January 2022 that it received a report from its quality inspectors on the presence of emulsion particles in Premium Motor Spirit (PMS) cargoes shipped to Nigeria from Antwerp-Belgium. The report NNPC received from its quality inspectors goes contrary to the quality certificates issued at load port (Antwerp-Belgium) by AmSpec Belgium, which indicated that the gasoline supplied, complied with Nigerian specifications.

    “As a standard practice for all PMS imports to Nigeria, the said cargoes were equally certified by inspection agents appointed by the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),” said the Chief Executive Officer/ Group Managing Director of NNPC, Mallam Mele Kyari.

    It is important to note that all imported petroleum products must meet the National Quality Standard specifications approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). To ensure compliance, relevant tests are carried out.

    Kyari also said that the NNPC quality inspectors including GMO, SGS, GeoChem and G&G conducted tests before discharge and the results showed that the gasoline met Nigerian specifications.

    In spite of the contrary report the NNPC claimed it received on 20th January, the corporation rather than isolate the vessel and take urgent steps to reconcile its findings with AmSpec Belgium which issued quality certificates for the product, concealed this information and allegedly went ahead to discharge same to five major oil marketers – OVH, MRS NIPCO, ARDOVA and TOTAL – between 24th and 30th January 2022.

    As the adulterated fuel travelled from Lagos to other parts of the country, an unperturbed Kyari visited the Federal University of Technology Minna, Niger State where he delivered the 30th convocation lecture of the university titled: “Energy Transition and Energy Accessibility: The New Paradigm” and was conferred its Honorary Doctorate Degree of Engineering (Honoris Causa) in recognition of his contributions to national development.

    “Just received an honourary Doctor of Engineering from the Federal University of Tech Minna. A humbling call to duty and for delivery of value to the shareholders of NNPC ltd.,” the NNPC GMD tweeted on 2nd February.

    The damaging effect of the bad fuel was soon noticed by the consuming public and Nigerians took to social media to complain about their vehicle engines developing faults after purchasing fuel from some filling stations. In one of the videos, a man holding a darkish liquid in a transparent container lamented how the fuel he bought from a refill station in Abuja had damaged his car.

    As a result of persistent complaints, the NNPC on 10th February, more than three weeks after it had been intimated of the bad purchase, issued a statement “that limited quantity of Premium Motor Spirit (PMS), commonly known as petrol, with methanol quantities above Nigeria’s specification, was discovered in the supply chain.

    “To ensure vehicular and equipment safety, the limited quantity of the impacted product has been isolated and withdrawn from the market, including the loaded trucks in transit. The source supplier has been identified and further commercial and appropriate actions shall be taken by the authority and NNPC Ltd.”.

    The blame game

    Not willing to take responsibility for the negative economic and social impact of the bad fuel, Kyari accused four oil marketers – MRS, Oando, Duke Oil and a consortium of consisting Emadeb/Hyde/AY Maikifi/Brittania-U – of importing the products through a Direct-Sale-Direct-Purchase (DSDP) arrangement.

    Three of the four named companies denied importing the bad fuel. One of them, MRS said in a statement that due to the current subsidy regime, NNPC is the sole supplier of all PMS in Nigeria.

    “Consequently, the NNPC through their trading arm, Duke Oil, supplied a cargo of PMS purchased from international trader Litasco and delivered it with Motor Tanker (MT) Nord Gainer. This vessel was discharged in Apapa between the 24th and 30th of January, 2022.

    “Following delivery into tank, it was observed that the product appeared hazy and dark; management immediately directed that further sales should be stopped and the products isolated. Urgent steps were taken to analyse the product to determine the basis for its contamination.

    MRS noted that product analysis revealed that the PMS discharged by Nord Gainer had 20 per cent methanol, an illegal substance in Nigeria, and immediately notified the NNPC, NMDPRA and MOMAN (Major Oil Marketers Association of Nigeria) and it was confirmed that other marketers had similar experiences; adding that the allegation that it imported contaminated products is “mischievous, false and untrue”

    Similarly, the management of Brittania-U maintained that all its imported products which cover the entire spectrum of upstream, midstream and downstream sectors, met NNPC’s product quality requirements.

    “All the PMS from our mother vessel, MT Torm Hilde were discharged with all relevant certificates of quality after laboratory analysis as it was adjudged lead-free, ethanol-free, water-free, suspended matter-free and had a sulphur content of 0.0174 as against 0.05, which is within the acceptable content allowable by Nigerian Midstream and Downstream Authority,” the company stated.

    Investigations by TheNewsGuru.com (TNG) revealed that following the deregulation of the downstream sector of the oil and gas industry and the inability of oil marketers to access foreign exchange at a competitive price, the NNPC has remained the sole importer of gasoline.

    Also, while the Corporation has not denied that it is responsible for supervising the industry, it punched a hole in the integrity of its processes when the GMD said that the NNPC’s assessment does not include tests for methanol.

    “It is important to note that the usual quality inspection protocol employed in both the load port in Belgium & our discharge ports in Nigeria do not include the test for Percent methanol content & therefore the additive was not detected by our quality inspectors,” Kyari said.

    A break in supply chain and resulting scarcity, damages

    Acute shortage of PMS was experienced across major cities evidenced by long queues and the presence of jerry can carrying youths along the streets, who jostled to sell the scarce product to motorists for between N300- N700 per litre against the official price of N165.

    In spite of the inconvenience of paying outrageously high amounts for the commodity and the loss of productive hours spent waiting under the scorching sun to buy PMS at the official price, many motorists reported various degrees of damage to their vehicles caused by the bad product.

    Chairman of MOMAN, Olumide Adeosun, said it had recorded at least 136 reported cases of damage to vehicle engines and working to ensure that the clean PMS product received are promptly distributed for the restoration of normal operations.

    “Some bad cases were recorded, including the Ardova PLC case, which led to 136 reported cases of vehicle engines damaged. We have identified the quantum of the problems, traced the sources and know the vessels that discharged the products as well as the depots and filling stations involved.

    Similarly, the Federal Competition and Consumer Protection Commission also confirmed that Nigerians who purchased contaminated fuel had experienced technical difficulties and damage to their vehicles, adding that it was engaging regulators and bodies involved in Nigeria’s downstream fuel distribution value chain to mitigate the losses experienced.

    “The commission in the process of its initial investigative assessment understand that consumers who purchased fuel that constitutes part of this consignment have experienced technical difficulties and damage to their vehicles or other relevant equipment/machinery,” it said.

    It said that in furtherance of its investigation, and pursuant to relevant laws, the Commission is currently engaging multiple regulators and relevant entities, particularly with respect to a reasonable and acceptable mechanism to mitigate demonstrated injury and or loss experienced by consumers.

    Meanwhile, the House of Representatives has called for a thorough investigation of the matter, stressing that consequences would be visited on all parties responsible for the great danger and inconvenience Nigerians have been subjected to through the supply of adulterated products.

    The NNPC has confirmed receipt of 2.1 billion litres of PMS which will be distributed to restore normalcy and predicted that the lingering fuel crisis would disappear this week and TNG can confirm that the situation has started to ease as shorter lines were observed at some filling stations on Sunday.

  • NNPC expects 2.3 billion litres of PMS to stabilise distribution

    NNPC expects 2.3 billion litres of PMS to stabilise distribution

    The Nigerian National Petroleum Company (NNPC) Limited started its week with an assurance to Nigerians that the distribution of Premium Motor Spirit (PMS) would soon normalise after it recalled the bad product imported into the country last week.

    The NNPC Group Executive Director (GED) Downstream, Adetunji Adeyemi, gave the assurance at a briefing in Abuja, while concerted efforts were being made to end the challenges in the supply of petrol.

    Adeyemi stated that the company was expecting over 2.3 billion litres of Premium Motor Spirit (PMS) in the country by the end of February and that over 1 billion litres of the product were currently being distributed nationwide.

    He assured that the product being dispensed at various filling stations in the country was safe, as the expected 2.3 billion litres would restore the sufficiency level above the national target of 30 days.

    Adeyemi explained that in order to accelerate PMS distribution across the country, the company had commenced 24 hours’ operations at its depots and retail outlets.

    He disclosed that NNPC had constituted a monitoring team, with the support of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other security agencies to ensure smooth distribution of PMS nationwide.

  • Anambra to start receiving 13% oil derivation from March

    Anambra to start receiving 13% oil derivation from March

    Gov. Willie Obiano says Anambra will begin to earn 13 per cent derivation in line with its status as an oil producing state from March.

    Obiano disclosed this at a parley with journalists in Aguleri, Anambra East Local Government Area after a tour of the Awka International Convention Centre and Anambra Cargo and passenger airport on Saturday.

    He said he was notified by the Nigeria Midstream and Downstream Pricing and Regulatory Agency (NMDPRA) who had confirmed lifting of crude oil in commercial quantity in Anambra.

    He said Anambra had 15 oil wells with ENIYE 10940 Oil field operated by SEEPCO fully operational and wholly owned by the state.

    Obiano also said the rice production of the state had hit 530,000 metric tonnes yearly from the 85,000 metric tonnes capacity of 2014.

    He said the revolution his administration brought into the agricultural sector made the state become not only self-sufficient in production but a net exporter of the commodity.

    He said the state demand was just about 330,000 metric tonnes of the total output noting that a lot of businesses had been invested in the sector and that many family economies had been transformed by the boom.

    He said the Anambra Airport which was fully operational would boost trade and commerce as well as export capacities of the state.

    Obiano said the 10,000 capacity International Convention Centre would be inaugurated in March 9.

    He noted that he would not be going for any political office but announced that his wife, Mrs Ebelechuwku Obiano, would be contesting for Anambra North Senatorial District.

  • NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    NARTO, NUPENG-PTD suspend planned strike as NNPC intervenes

    The Nigerian Association of Road Transport Owners, National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum Tanker Drivers (PTD) have suspended their planned strike after an intervention by the NNPC Ltd.

    The parties also pledged collaboration on ensuring nationwide availability of petroleum products.

    The suspension notice was made known in a communique following a critical stakeholders engagement between the NNPC Ltd., the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), PTD, NARTO, and NUPENG on Thursday, in Abuja.

    The communique was jointly signed by Malam Mele Kyari, Group Managing Director, NNPC, Otunba Salmon Oladiti, National Chairman PTD , Mr Yusuf Otthman, NARTO President Comrade Williams Akporeha, NUPENG President and Abiodun Adeniji, Executive Director, Finance and Admin, NMDPRA.

    NUPENG and PTD had declared to embark on strike based on its investigations which revealed that officials of the Federal Ministry of Works and Housing were currently diverting the fund provided by NNPC Limited for the rehabilitation of 21 critical highways.

    On Road Rehabilitation, the communique said NNPC provided updates on the current status of the road construction and rehabilitation projects under the road infrastructure tax credit scheme.

    It said the NNPC assured the stakeholders that the funding earmarked for the 21 critical roads would be applied for the intended purpose only.

    ”To allay the fears of the stakeholders, NNPC and all parties commit to working together in the monitoring of the road projects,” it stated..

    On review of freight rate for transporters, the communique noted that the stakeholders requested for completion of the ongoing discussion on the review of the freight rates to cover operational costs.

    It noted that the stakeholders highlighted the precarious situation that truck owners faced in the light of current economic realities.

    It further noted that the NMDPRA informed the meeting that a committee was constituted to review the rates which included PTD, NARTO and NUPENG in addition to other stakeholders.

    It stated that all parties agreed to work expeditiously towards concluding the review of the freight rate and make recommendations to the Government.

    According to the communique, the Authority is to advise on definite close-out date during the week of Feb. 21.

    ”The parties also agreed to foster collaboration on ensuring nationwide availability of petroleum products.
    ”All parties agreed to work closely to ensure efficient distribution of petroleum products across the country,” it stated.

  • Petrol scarcity: We’ll restore normalcy in Abuja, others in 3 days – NMDPRA

    Petrol scarcity: We’ll restore normalcy in Abuja, others in 3 days – NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says normalcy will be restored to petrol stations in Abuja and other areas in about three days following the resumption of loading in Lagos depots.

    Mr Farouk Ahmed, Chief Executive, NMDPRA, made this known when he visited some petroleum products depots in Apapa and Ijegun-Egba areas of Lagos State on Wednesday.

    The depots visited by Ahmed who was accompanied by Mr Adeyemi Adetunji, Group Executive Director, Downstream, Nigerian National Petroleum Company Ltd., included 11 Plc, NIPCO, A.A. Rano and Emadeb.

    Ahmed said the scarcity was caused by the stoppage of loading for some days when a vessel of Premium Motor Spirit (PMS) imported into the country was discovered to contain methanol above the specified volume.

    He said the technical team comprising stakeholders in the downstream sector had been able to identify, isolate and quarantine the limited amount of PMS affected by the methanol volume that was discovered.

    Ahmed said: “We have gone round some of the depots in Apapa and Ijegun-Egba and they are loading.

    “These products that are being loaded have been tested and are being distributed to Lagos and other Northern parts of the country.

    “There is a vessel that just arrived with 39,000 MT, which would be distributed to the major marketers here in Apapa.

    “Once they start loading, Lagos will be cleared in a day or two but trucking from here to Abuja and other areas will take two to three days.”

    He noted that the incident had taught the authority a lesson on the need for extra due diligence in carrying out its regulatory activities.

    “I will not make any excuses. The fact is that there were mistakes made because we received product that was off specification even though there was a surveyor that actually went on board and took sample.

    “Because this parameter was not indicated, they didn’t capture that parameter.

    “So it was a mistake but now going forward, obviously we have to balance all these parameters and components of imported products not only PMS but other petroleum products.

    “The component that was in excess was methanol and the fuel was not toxic or something that can destroy the environment but it was a matter of how it affects machineries and vehicles,” said Ahmed.

    He said the withdrawn products would be re-blended to ensure it met the country’s specification.

    According to him, it will be tested to ensure it is of good quality and recertified before it is redistributed into the market.

  • We have 20 days PMS sufficiency, no need for panic buying – NMDPRA

    We have 20 days PMS sufficiency, no need for panic buying – NMDPRA

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria currently has 20 days sufficiency of Premium Motor Spirit (PMS) hence there is no need for panic buying by the public.

    The downstream petroleum regulatory agency said it was also working round the clock with other stakeholders to address the issue of substandard PMS, also known as petrol, imported into the country.

    Mr Farouk Ahmed, Chief Executive NMDPRA made this known during a meeting with downstream industry stakeholders on Wednesday in Lagos.

    The meeting had in attendance top officials of the Nigerian National Petroleum Company Ltd., the Major Oil Marketers Association of Nigeria (MOMAN) and the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    Ahmed said the imported PMS was discovered to contain methanol above the specified volume , adding that a technical team comprised of stakeholders was working towards resolving the issue.

    He said: “Today, I am happy to say that loading has been going on in most of the depots because we have been able to identify, isolate and quarantine the limited amount of gasoline that was affected by the methanol volume that was discovered.

    “We have vessels that have arrived the country recently.

    “At least six arrived in the last few days ordered by the NNPC carrying a total volume of close to 300 million litres just to close to gap created by those vessels we have withdrawn from the system.

    “All in all, as at today, we have about 20 days sufficiency of PMS in the country. Our ideal days of sufficiency is 30 but the withdrawal of the vessel created the gap in our 30 days sufficiency.

    “Again, with aggressive importation by the NNPC, this will be closed in a few days from the data we got from the NNPC’s import programme.

    “Loading is also ongoing in most of the depots that have confirmed spec products so there is no need for panic. Hopefully by tomorrow or early Friday, Lagos will will be cleared.”

    According to him, there is a 9,000MT vessel that is currently about to discharge at the Apapa Port.

    He said this vessel would be providing PMS to major marketers including OVH Energy, TotalEnergies, 11 Plc, Con Oil and Ardova Plc.

    Ahmed said there were also vessels on ground to supply products to DAPPMAN members while the technical team would continue to work on how to salvage the withdrawn products in their depots.

  • FG confirms there is bad fuel in circulation with high methanol

    FG confirms there is bad fuel in circulation with high methanol

    1. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has confirmed that there is bad fuel in circulation. It says there is limited quantity of Premium Motor Spirit (PMS), known as Petrol, with methanol quantities above Nigeria’s specification discovered in the supply chain.

    NMDPRA said to ensure vehicular and equipment safety, the limited quantity of the impacted product has been isolated and withdrawn from the market, including the loaded trucks in transit.

    Methanol is a regular additive in Petrol and usually blended in an acceptable quantity.

    There were huge outcry by motorists in the past two days over the fuel they bought in their cars damaging their engines. Several video of the fuel, mostly in some filling stations in Lagos and it’s environment, have been trending on social media. NMDPRA, the defunct Petroleum Products Pricing Regulatory Authority, confirmed last night that it was indeed true.

    It noted that the source supplier has been identified and further commercial and appropriate actions shall be taken by the Authority and NNPC Ltd.

    It assured that its technical team in conjunction with NNPC and other industry stakeholders, would continue to monitor and ensure that quality petroleum products were supplied and distributed nationwide.

    “NNPC Ltd and all Oil Marketing Companies have been directed to sustain sufficient distribution of Petrol in all retail outlets nationwide.

    “Meanwhile, NNPC has intensified efforts at increasing the supply of Petrol into the market in order to bridge any unforeseen supply gap.