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HomeNewsFuel Scarcity Is Political, Oil Marketers Indict NNPCL

Fuel Scarcity Is Political, Oil Marketers Indict NNPCL

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  • NNPCL Making Vain, Empty Promises
  • Oil Marketers Say No End In Sight
  • How FG Secretly Approved Increase To N185
  • Reviving Moribund Refineries Way Out- Stakeholders

In an apparent indictment of the Nigerian National Petroleum Company Limited, oil marketers in Nigeria have accused the formerly state-owned oil company of politicising the supply process and making empty and vain promises.

This is as the petrol scarcity across the country continues to bite harder with long queues dotting the nooks and crannies of the country.

The oil marketers have lambasted the Managing Director of the NNPCL Retail, Hubb Stockman for playing politics with the oil marketers and for not living up to his promises of ensuring that they would receive direct product supply at the government-regulated price of N148/litre from this month.

According to the Chairman of Satellite Depot, Independent Petroleum Marketers Association of Nigeria IPMAN, Akin Akinrinade, in an earlier interview disclosed that NNPCL is playing politics with the situation.

“We have yet to see any product supply. Well, the man (Stockman) has been in Nigeria for some time now and is probably beating us to our game. He’s playing politics and we don’t see the situation abating soonest” he said.

READ ALSO: FEC Okays NNPC Ltd to invest N1.9trn in 44 federal Roads

Akinrinade added that marketers as of last Friday bought products from the depots at between N235-N240 per litre, saying there was no way they would sell products below N270/litre even within the Lagos metropolis.

On what could be the lasting solution to fuel scarcity, he advised the Federal Government to revive the refineries to enable local production.

“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.

Also speaking, the National Operations Controller of IPMAN, Mike Osatuyi, told The PUNCH that the removal of fuel subsidy and deregulation was the key to resolving the fuel scarcity menace.

“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market, where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy would be removed in June, let’s wait and see, but until then, we have to manage,” he told The PUNCH over the phone.

The Chairman of the Major Oil Marketers Association of Nigeria (MOMAN) Olumide Adeosun, also said the deregulation of the downstream sector would eradicate fuel scarcity.

“Having subsidised PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations. As a country, we must begin the process of price deregulation to reduce this inefficient subsidy,” he said.

According to him, if the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food inflation and generate more jobs for Nigerians.

He said, “We must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability.

“The exploration, production, refining of crude oil and the distribution of refined products is an international business with ebbs and flows and has specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain. The government and the industry in Nigeria must demonstrably apply these accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations. To cut corners would be irresponsible, unaccountable, and unsustainable.”

Long fuel queues were still seen across Lagos on Wednesday. Some motorists were seen queuing up for N170 per litre of fuel at stations belonging to MOMAN members, but stations belonging to IPMAN members rarely had customers, as those who could afford products sold for N250/litre and above, were seen freely driving in and out of their (IPMAN) stations.

Findings showed that while MOMAN members get fuel directly from NNPCL at a government-deregulated price of N148/litre, IPMAN members patronise private depots where prices are determined by market indices.

Meanwhile, indications have emerged that the Federal Government may have given approval to the Nigerian Midstream and Downstream Petroleum Regulatory Authority for an upward review of the official retail price of petrol to N185.

According to sources, the increase is to compensate for the current market realities associated with escalating foreign exchange and high lightering charges such as the cost of chartering shuttle vessels for discharge of the Premium Motor Spirit (PMS).

A source told The Guardian that the approved pump price was communicated to major marketers in a memo early Thursday.

Many MOMAN-owned fuel stations in Lagos State have started adjusting their pump price to the approved ₦185 per litre.

Fuel Scarcity Is Political, Oil Marketers Indict NNPCL

·       NNPCL Making Vain, Empty Promises

·       Oil Marketers Say No End In Sight

·       How FG Secretly Approved Increase To N185

·       Reviving Moribund Refineries Way Out- Stakeholders

In an apparent indictment of the Nigerian National Petroleum Company Limited, oil marketers in Nigeria have accused the formerly state-owned oil company of politicising the supply process and making empty and vain promises.

This is as the petrol scarcity across the country continues to bite harder with long queues dotting the nooks and crannies of the country.

The oil marketers have lambasted the Managing Director of the NNPCL Retail, Hubb Stockman for playing politics with the oil marketers and for not living up to his promises of ensuring that they would receive direct product supply at the government-regulated price of N148/litre from this month.

According to the Chairman of Satellite Depot, Independent Petroleum Marketers Association of Nigeria IPMAN, Akin Akinrinade, in an earlier interview disclosed that NNPCL is playing politics with the situation.

“We have yet to see any product supply. Well, the man (Stockman) has been in Nigeria for some time now and is probably beating us to our game. He’s playing politics and we don’t see the situation abating soonest” he said.

Akinrinade added that marketers as of last Friday bought products from the depots at between N235-N240 per litre, saying there was no way they would sell products below N270/litre even within the Lagos metropolis.

On what could be the lasting solution to fuel scarcity, he advised the Federal Government to revive the refineries to enable local production.

“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.

Also speaking, the National Operations Controller of IPMAN, Mike Osatuyi, told The PUNCH that the removal of fuel subsidy and deregulation was the key to resolving the fuel scarcity menace.

“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market, where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy would be removed in June, let’s wait and see, but until then, we have to manage,” he told The PUNCH over the phone.

The Chairman of the Major Oil Marketers Association of Nigeria (MOMAN) Olumide Adeosun, also said the deregulation of the downstream sector would eradicate fuel scarcity.

“Having subsidised PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations. As a country, we must begin the process of price deregulation to reduce this inefficient subsidy,” he said.

According to him, if the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food inflation and generate more jobs for Nigerians.

He said, “We must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability.

“The exploration, production, refining of crude oil and the distribution of refined products is an international business with ebbs and flows and has specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain. The government and the industry in Nigeria must demonstrably apply these accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations. To cut corners would be irresponsible, unaccountable, and unsustainable.”

Long fuel queues were still seen across Lagos on Wednesday. Some motorists were seen queuing up for N170 per litre of fuel at stations belonging to MOMAN members, but stations belonging to IPMAN members rarely had customers, as those who could afford products sold for N250/litre and above, were seen freely driving in and out of their (IPMAN) stations.

Findings showed that while MOMAN members get fuel directly from NNPCL at a government-deregulated price of N148/litre, IPMAN members patronise private depots where prices are determined by market indices.

Meanwhile, indications have emerged that the Federal Government may have given approval to the Nigerian Midstream and Downstream Petroleum Regulatory Authority for an upward review of the official retail price of petrol to N185.

According to sources, the increase is to compensate for the current market realities associated with escalating foreign exchange and high lightering charges such as the cost of chartering shuttle vessels for discharge of the Premium Motor Spirit (PMS).

A source told The Guardian that the approved pump price was communicated to major marketers in a memo early Thursday.

Many MOMAN-owned fuel stations in Lagos State have started adjusting their pump price to the approved ₦185 per litre.

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