Govt puts fuel at N184/ litre, vows to remove queues soon

Sylva 

By Akinola Ajibade

The Minister of State for Petroleum Resources, Timpre Sylva, yesterday, said that the price of petrol would not exceed N184 per litre, even as he promised that the current queues across the country would ease soon.

He spoke in Lagos after an assessment of fuel dispensing outlets within the metropolis.

According to him, the inspection of petroleum dispensing outlets became necessary in order to know the true picture of things in the nation's commercial centre and to further brief the Federal Government on what must be done to completely rid the country of fuel problems.

Sylva, who was in lagos Friday on the directive of President Muhammdu Buhari, said that the government has taken some bold steps in order to ensure stability in the distribution of petroleum products and further solve fuel pricing problems.

The government, the minister initiated interministrerial intervention on fuel crises, in order to ensure  proper management of petrol distribution across the country. 

“He situation is pleasant because I observed availability of products in the state, fuel is available is in  Lagos and Abuja respectively.  For instance, I visited many outlets in Ikeja and Mainland and from indications, there are petroleum products, a development, which implies that Nigerians would access them without hitches soon" he said.

Continuing further, Sylva said that the fifteen states, excluding Lagos are not short of fuel, adding that the President has ordered that queues must be cleared immediately.

On arbitrary increase in the prices of fuel, Sylva said that the government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to upscale its regulatory activities, with a view to ensure that marketers abide by the current price regime.

He said that over 900 retail outlets owned by the Nigerian National Petroleum Company Limited  are selling fuel at N184 per litre, stating that every other outlets are expected to sell it at price, if not because of  sharp practices, that is existing among marketers.

NNPCL's Corporate Head Office

While explaining how the situation degenerated Io this level, Sylva blamed on it on saboteurs, who took advantage of the upcoming elections to create panic sales of fuel to motorists and other consumers.

He, however, pointed out that other factors such as insecurity, foreign exchange scarcity, lack of currency availability among others, compounded the situation.

He said that the inter ministerial body inaugurated by the President is  working in synergy with other relevant institutions to  check all seeming challenges in the industry.

Meanwhile, News Mirror reported  that owners of Petroleum Products Tank Farms in Ijegun-Egba, Satellite Town( both in Lagos) are loading fuel massively, while at the same time, distributing it different parts of the country will ease scarcity.

Also, the chairman of Tank Farm Owners Association,  Mr Debo Olujinmi said that fuel scarcity would soon be s thing of the past. He spoke on Thursday in  Lagos, while receiving direct petrol allocation from the Nigerian National Petroleum Company Ltd.(NNPCL).

Olujimi said Nigerians should be aware that petrol had become fully available and sold at government regulated ex-depot price of N172 per litre at all Satellite depots.

For instance, Ijegun-Egba depot has about five depots, namely: Emadeb Energy Services, A.A. Rano Energy, Menj Oil, Ocean Pride and Rainoil.

He noted that NNPCL in early February this year, allocated over 150 million litres of petrol to satellite depots.

He said: “We are assuring Nigerians that the product will be sold at regulated price and we have commenced massive loading to all states of the federation to ease scarcity.

“We want Nigerians to trust us, and we assure that the product will be distributed effectively as directed by government to ease scarcity and eradicate panic buying.

Adding further: “ The product will be sold at the regulated pump price in all Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Marketers Association of Nigeria (MOMAN) filling stations across the country.

One of fuel depots in Nigeria

"We have also said that all depots within the satellite Ijegun depot that sell above the regulated ex-depot price are going to be sanctioned,” he said.

Olujimi, also the Chief Executive Officer of Emadeb Energy Services, said the tank farms located in Satellite Town plays a pivotal part in petroleum distribution in Nigeria, as it accounted  for 35 per cent of national petroleum product distribution.

“We have played, and will continue to play significant roles in the supply and distribution of petroleum products across the nation.

“We want to give Nigerians assurance that petrol is available and we have started loading it out to various states and stations across the nooks and crannies of Nigeria,” he said..

Olujimi explained that the transfer of product from mother vessel, which usually cost 21,000 dollars by day had increased to 85,000 dollars per day, which is N850, 000.

He said the process which often required 10 days posed a serious challenge to depot owners in bringing petrol from offshore line to the depots.

He said in total, depot owners spent about 1.2 million dollars to bring products from offshore to the depots.

“He frowned at NIMASA and NPA who were charging in dollars, this has also increased the cost of shipment.

“Currently, the price has reduced, we encourage NNPCL to get additional vessel; at the moment the price is between 60, 000 dollars to 65,000 dollars per day.

“Some of us have taken the bull by the horn to encourage ourselves by selling the product at the official price, even if the margin is small,” he added.

He said the ongoing distribution of petrol at official price was part of the contributions of his members to society.

On smuggling, Olujimi advised all government agencies saddled with the responsibility at the borders to live up to their expection and bring the culprits to book.

He, however, called for total deregulation of the downstream sector of the oil and gas sector to create room for free market realities.

He added that the huge amount of money being spent on subsidy could be used to improve the country’s economy.

In his remarks, Mr Mike Osatuyi, IPMAN’s National Operations Controller, commended the depot owners for the courage to sell petrol at regulated price to marketers.

Osatuyi said, “With this new price, have told my members that nobody should buy petrol above regulated price of N172 ex-depot; any depot that sells above the regulated price should be reported to the government.

He expressed worry over the sustainability of the supply to depot by government, adding it would be appreciated if it continued so as to ease scarcity.

“Today we are flagging off the direct loading for IPMAN members, we therefore appeal to government to ensure sustainability of the product to our members.

“Our members are owners of more than 85 per cent of depots owners, hence the appeal to NNPC to give IPMAN members little time to sell remaining stocks in our stations.

“IPMAN members are at every nooks and crannies of Nigeria because all the 21 depots of government are not working,” he said.

He urged the Federal Government to beef up products to Ijegun Egba satellite depot, adding that the depots were responsible for about 35 per cent of product distribution in Lagos.

“Government, through NNPCL, needs to supply the system with petrol continuously to bridge the supply gap.

“Back to back supply and supply to tank farm owners in Ijegun Satellite town it needed to ease scarcity.

“IPMAN accounts for about 80 per cent customers across the country, this will ease supply and also create seamless operations,” he said.

He added that since government had agreed to supply petrol directly to its members at N172 per litre, the association had also inaugurated a task force that would keep watch over members that might want to sell above the regulated pump price.

“We have been complaining to government over the years to allocate petrol to IPMAN at regulated price because we have been buying at unofficial price.

“We are going to comply with government regulations on official pricing. We also urge government and depot owners to comply with official ex-depot price to marketers.

“We appeal to depot owners to put their house in other bucause we are going to report any depot who sell above regulated price of N172 per litre to IPMAN members,” Osatuyi added.

Mr Ayo Cardoso, the Regional Coordinator, Southwest of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority had been monitoring the system from the vessel to the pump.

Cardoso said, “We have sufficient petrol in the system; l can assure you that in few days the scarcity will ease off.

“As at today, the inland depots have about 580 million litres, the offshore have about 690 million litres of petrol, which means that we have about 1.3 million litres of petrol.

“This shows that we have sufficient fuel in the country which translates to 52-day stock sufficiency.

“We have issues with distribution and it’s been addressed to ease supply.

“We are also visiting stations to monitor distribution in order to check the activities of marketers,” he said.

Mr Mohammed Koki, the General Manager, A.A Rano Terminals, said the company was expecting about 26 million litres of petrol today and it would be distributed within four days.

Similarly, Terminal Manager, Menj Oil, Mr Umar Akiyu said the firm has received  26 million litres of petrol and had commenced 24 hours loading.