Tag: PMS

  • NARTO lauds FG over review of petrol freight rate

     The Nigerian Association of Road Transport Owners (NARTO) has lauded the Federal Government over the upward review of the freight rate for Premium Motor Spirit (PMS).

    NARTO’s President, Alhaji Yusuf Othman, told newsmen on Friday in Lagos that the review would cushion the effect of the rising cost of diesel on the operations of transporters.

    Othman said: ” It is a very good development and it shows that government is being proactive.

    “It will go a long way in cushioning the effect of the diesel cost on our operations.

    “Like we keep saying, diesel is more than 70 per cent of our operational cost. So it was certain that the high diesel cost would affect our operations.

    “You cannot take products from Lagos to Abuja and other areas while running at a loss.”

    He said NARTO members had been struggling to operate, adding that normalcy would soon return to the petroleum products distribution sector with the intervention.

    While noting that the government was yet to communicate the new freight rate to marketers and transporters, Othman expressed optimism that the increment would help reduce operational losses.

    He also assured Nigerians that the scarcity of petrol being experienced in Abuja and other parts of the country would soon abate.

    “More of our members will resume bridging, which is the transportation of petroleum products from depots to other areas across the country following this development.

    “NARTO members are ready to reciprocate government’s gesture. We are very happy with this timely intervention which is a good development for the industry, ” Othman said.

    Newsmen reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had in a statement on Thursday said President Muhammadu Buhari had approved the upward review of the freight rate.

    The statement said the review was necessitated by the upswing in the global price of petroleum products, especially Automotive Gasoil (Diesel) and its implication on the cost of transporting PMS nationwide.

    It said the revised freight rate would take effect from June 1 while still maintaining the current regulated PMS pump price of N165.00 per litre.

    “We believe the increase in transporters freight rate will further encourage NARTO and other stakeholders to deploy more trucks to transport PMS nationwide to ensure adequate supply of the product,” the statement said. 

  • Petrol freight rate rises by N10 per litre

    The freight rate of petrol, otherwise known as Premium Motor Spirit (PMS) has been increased by the Federal Government by N10 per litre.

     

    It was gathered that a circular on the increase, which took effect June 1, would be issued today.

     

    President, Nigerian Association of Road Transport Owners (NARTO), Alhaji Yusuf Othman, said the increase was because most transporters could not afford the cost of diesel that used to be N600/litre as of last month.

     

    The transporters subsequently stopped lifting the product.

     

    This has culminated in its scarcity in the Federal Capital Territory (FCT) and its environs where queues around retail outlets have persisted in the last few days.

     

    It has also triggered black marketing of the PMS with some traders vending it for between N3, 000 to N4,500 per litre in plastic containers.

    Petrol

     

    According to the National Vice President- Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, the reason why petrol scarcity remained unabated yesterday was due to the high cost of diesel, “It has soared to N800 per litre.”

     

    According to him, it is no longer sustainable to transport petrol with the present cost of diesel.

     

    He noted that it takes about 1,000 to 1,100 litres to fuel a truck with diesel from Lagos to Abuja.

     

    Maigandi explained that when multiplied by N800 per litre, it becomes N800, 000 or N880, 000 diesel for the trip, while the government had been paying N600,000 for the diesel.

     

    There was however some respite to that high cost yesterday as Othman revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved N10 per litre an increase in freight rates across the board for the transporters.

     

    He added that the association broke the good news to its members yesterday and asked them to resume work.

     

    In his words: “Cost of diesel has made so many transporters parked their trucks. But then the government has come to our rescue. The government has approved N10 across the board. “This is effective from 1st of June. So, the circular will be released tomorrow (today Monday) to that effect.

     

    “And we have called on our members to come out and reciprocate this kind gesture at this difficult time. That is the true situation. The government themselves will release an official circular tomorrow (Monday).”

    Petrol

     

    NMDPRA raised the freight rates to N25/litre owing earlier this year to transporters demand for an upward review.

     

    NMDPRA’s General Manager, Public Corporate Affairs, Mr. Apollo Kimchi, confirmed that the management of the authority was in a meeting yesterday working on the rate.

     

    He noted that the new rate would be made public by 10am (today) Monday. Kimch was however silent on the amount.

     

    ‘They said they are still working on it. They are working on something but it is not yet concluded. They said by 10:00am tomorrow they will be able to come up. Presently, they (management staff) are in the office,” the spokesman said.

  • Fuel scarcity: Long queues resurface in Abuja

    Fuel scarcity: Long queues resurface in Abuja

    Most fueling stations in Abuja have been shut down following scarcity of Premium Motor Spirit (PMS), popularly known as petrol.

    The situation has caused long queues of vehicles at various fueling stations in the Federal Capital Territory (FCT), Abuja.

    A NAN correspondent who monitored the petrol supply situation in Wuse, Gwarimpa, Wuye and Kubwa areas of Abuja reports that long queues had resurfaced with most fueling station not selling to motorists.

    A private car owner, Mr Alex Udoh, told NAN that the queue resurfaced on Saturday and all his efforts to buy fuel failed.

    Udoh urged government to find lasting solution to the lingering fuel scarcity because of its adverse effect on the national economy.

    He also called on all relevant authorities to maintain peace and order in filling stations and curb black marketing spots.

    “I do not know the reason for the scarcity again and it is annoying,” said the motorists.

    A taxi driver, Malam Yakubu Umar, said he had been at the petrol station for over five hours waiting to buy the product.

    “I bought black market yesterday and I did not make any profit,” he lamented.

    None of the fueling station operators responded to NAN enquiries on the sudden scarcity of the product.

    The Nigeria National Petroleum Company (NNPC) is also yet to explain the cause of the scarcity and efforts to restore normalcy in the industry.

  • Senate passes N17.3trn revised 2022 budget

    Senate passes N17.3trn revised 2022 budget

    The Senate has passed the revised 2022 N17.3 trillion budget.
    This followed the adoption of the report of Senate Committee on Appropriation at Thursday’s plenary.

    Presenting the report, Sen. Barau Jibrin, the Chairman of the committee said that the budget was made up of N7 trillion recurrent expenditure and N5 trillion capital expenditure, while N817 billion was for statutory transfers.

    Jibrin said that N3 trillion of the budget was for debt service.

    “Also, the Senate approved the total sum of 3.55 trillion for PMS subsidy in 2022, forwarded in two separate requests by the President to the National Assembly for approval,” he said.

  • Fuel scarcity: NNPC denies adjusting price of PMS

    Fuel scarcity: NNPC denies adjusting price of PMS

    Amidst the prevailing scarcity of fuel, the Nigerian National Petroleum Corporation (NNPC) Limited has said it has not adjusted the price of premium motor spirit (PMS).

    TheNewsGuru.com (TNG) reports PMS, otherwise known as petrol, is used to power vehicles and generators that use internal combustion engines.

    A report in circulation had touted the NNPC as reviewing the ex-coastal, ex-depot and NNPC retail pump prices of PMS, reportedly in compliance with the directives of the Minister of State for Petroleum Resources.

    “In compliance with the directives of the Honourable Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.

    “Effective 19th March 2020, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre. These reductions will therefore translate to N125/litre retail pump price.

    “Despite the obvious cost implication of this immediate adjustment to the Corporation, NNPC is delighted to effect this massive reduction of N20/litre for the benefit of all Nigerians.

    “Accordingly, all NNPC Retail stations nationwide have been directed to change the retail pump price to N125/litre,” the statement reportedly signed by Mele Kyari, Group Managing Director, NNPC reads.

    However, in a swift response, the NNPC has described the report as a mischievous act of misinformation, saying its fake news.

    In the response signed by Garba Muhammad, Group General Manager, Group Public Affairs Division of NNPC Ltd, the Corporation urged the general public and industry operators at all levels to disregard the report.

    “It has come to the attention of the NNPC Ltd that the Company has reviewed ex-coastal, ex-depot and NNPC Retail prices. This is not true. It is fake news obviously concocted to cause confusion and to undermine the progressive drive of the NNPC to restore normalcy to the market.

    “The general public and in particular industry operators at all levels should disregard this mischievous act of misinformation.

    “NNPC Ltd remains focused and determined to reposition itself to provide value to its share holders, while meeting its statutory obligation as provider of energy security for our country,” the statement by Muhammad reads.

  • 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.

  • Adulterated petrol: We are almost through blending imported off-spec PMS – MOMAN

    Adulterated petrol: We are almost through blending imported off-spec PMS – MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) says its members have almost completed the blending of the off-spec Premium Motor Spirit (PMS) popularly called petrol imported into the country.

    MOMAN’s Executive Secretary, Mr Clement Isong, confirmed the development on Thursday in Lagos State.

    The withdrawal of the imported adulterated PMS from the market created a supply gap which triggered scarcity of the product across the country The product was said to have contained methanol above the specified volume.

    The government had set up a technical committee of stakeholders in the downstream petroleum sector, to carry out the blending of the off-spec petrol, to comply with the acceptable standard.

    “We are almost done with the blending of the off-spec petrol. For majority of MOMAN members, we have almost finished the blending. We have successfully blended out the methanol and it is now on-spec,” Isong said.

    He noted that the lingering scarcity of PMS was triggered by the withdrawal of the off-spec petrol from the market, but had been compounded by other factors.

    According to him, these include; the availability of PMS in the international market and the high cost of diesel, which have made transportation of petroleum products expensive for marketers.

    He said: “There are other factors that came into play. So, to solve the problem, you need to supply about 150 per cent of your usual supply to the country for the queues to disappear.

    “The Nigerian National Petroleum Company Limited has ramped-up supply, and that is why the queues are disappearing.”

    On the escalating prices of Automotive Gas Oil (Diesel) and Jet A1 (Aviation fuel) in the country, Isong noted that the ongoing hostilities between Russia and Ukraine and access to forex by marketers were responsible.

    He said that the attack on Ukraine by Russia had led to an increase in the prices of crude oil and all its derivatives, including diesel and aviation fuel.

    “That war that is ongoing has caused crude oil prices to go up worldwide. It has got as high as $130 per barrel. The problem simply is, even if you have the money, it is not so easy to find.

    “Marketers are finding it difficult to source for products and import them to the country. Then, there is the issue of accessing forex, which has been a bit challenging for marketers.

    “So, when you add these two things together, you will understand why we are having this problem,” Isong said.

    Nigerians have been facing scarcity of petrol for weeks, with some filling stations hiking their pump price to N200 per litre.

    Also, the price of diesel used by manufacturers to power their generators and the aviation fuel used by aircraft, have gone above N600 per litre in the last few days, due to the scarcity of the products.

  • Fuel in Nigeria now will last 32 days – Sylva

    Fuel in Nigeria now will last 32 days – Sylva

    At least, for 32 days, Nigerians do not need to worry about fuel, as 1.9 billion litres of petrol is now in stock.

    This was disclosed in Abuja, Wednesday, by the Minister of State for Petroleum Resources, Mr Timipre Sylva, while updating the Federal Executive Council in a session presided over by Vice President Yemi Osinbajo.

    The Minister was accompanied to the FEC session by the Group Managing Director of the Nigerian National Petroleum Corporation, Mr Mele Kyari.

    The Senior Special Assistant to the President, Office of the Vice President, Mr Laolu Akande, told newsmen at the end of the session that NNPC had embarked on 24-hour loading of petrol to ameliorate the long queues at fuel stations.

    The minister informed the Council that there is enough stock – in reference to about 1.9 billion litres to last for 32 days.

    “There’s a 24-hour loading that is going on at all depots working with the Directorate of State Service and the Independent Petroleum Marketers Association of Nigeria to ensure that the situation improves significantly,’’ he said.

    Akande said. Some reports have it that fuel queues have reduced in Abuja, Kaduna and some other cities in the last 48 hours, linked to the fact that a good number of fuel stations have started operating 24-hour services.

  • 26 ships with petroleum products, others set to arrive Lagos ports

    26 ships with petroleum products, others set to arrive Lagos ports

    The Nigerian Ports Authority (NPA) on Wednesday said that 26 ships with petroleum products and other items were expected at the Lagos port from March 9 to March 22.

    It said in its daily Shipping Position that the other items include general cargo, frozen fish, container, bulk sugar, butane gas, bulk wheat, bulk urea, bulk gypsum, base oil, bulk soya and automobile gasoline.

    NPA said another four ships had arrived the ports waiting to berth with bulk sugar, bulk wheat and general cargo.

    It said that 18 other ships at the ports were discharging bulk wheat, general cargo, container, soya bean oil, bulk sugar, butane gas, bulk gypsum, bulk urea and petrol.

  • Fire guts building as PMS tanker explodes in Lagos

    Fire guts building as PMS tanker explodes in Lagos

    A three-storey building in Mushin area of Lagos State was on Wednesday gutted by fire following the explosion of a tanker discharging Premium Motor Spirit (PMS) at a nearby petrol station.

    Mr Ibrahim Farinloye, Acting Zonal Coordinator, South West Zonal Office,
    National Emergency Management Agency (NEMA), confirmed the development in a statement issued in Lagos.

    Farinloye said the explosion, which occured at a Mobil Petrol Station about 1p.m , gutted the residential building located at No. 71, Agege Motor Road, Alakara, Mushin, Lagos.

    He said: “No life was lost and no one was injured. Containment of the fire has been very successful

    “Efforts are ongoing to salvage the three- storey building from being totally consumed.

    “The few items that were saved have been deposited at the Alakara Police Station which is opposite the building.”

    According to him, the Mobil Filling Station has been sealed-off by the Lagos State Safety Commission.

    Farinloye said: “Presently, out of the 33,000 litres of four compartments, the explosion started while only one compartment was being discharged.

    “With total control of the fire, the remaining three compartments are being discharged to ensure the safety of the community.”

    He noted that though the cause of the explosion is yet to be ascertained, it was a reminder on the need for Nigerians to be very careful in handling of gasoline.

    Farinloye said this was especially due to the current dry season and excessive heat when little pressure could lead to a fire outbreak.

    He said the agencies on ground at the scene were NEMA, Federal and State Fire Services, Lagos State Emergency Management Agency, and the Disaster Management Unit of the Lagos State Police Command.

    Farinloye said also on ground were officers of the Federal Road Safety Corps and the Nigeria Security and Civil Defence Corps.