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Showing posts with label NNPCL. Show all posts
Showing posts with label NNPCL. Show all posts

Thursday, 5 September 2024

Petrol Scarcity: NNPCL Bars Independent Marketers Amid Surging Prices


By Ayodele Ifasakin 

Nigerian National Petroleum Corporation has reportedly suspended the sale of Premium Motor Spirit – popularly called petrol – to independent marketers after it hiked the product’s price on Tuesday.

Petrol Scarcity: NNPCL Bars Independent Marketers Amid Surging Prices


This is even as three vessels berthed at the Apapa, Lagos jetty on Wednesday to discharge imported petrol.


The price hike sparked a protest in Delta State as commercial tricycle operators, also known as ‘keke’ riders, took to the streets of Warri and Effurun metropolis to resist the price hike.


Checks by our correspondents revealed that commuters across the country were either stranded or trekked long distances on Wednesday as fuel queues worsened amid scarcity of the product.


Few commercial motorists came out for business, with most of them lamenting the agonising hike in fuel, barely a month after the hardship protest rocked the nation.


The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, told The PUNCH that the NNPC stopped selling fuel to independent marketers on Tuesday when it raised the price of a litre of PMS to N855 and above across its retail outlets nationwide.


Independent marketers sold the product for as much as N1,200 and N1,300/litre in some states following the upward review of prices by the NNPC.


Fashola wondered why the national oil firm would suspend the sale of petrol to the marketers take without any official communication, even when the marketers had paid for the product over two months ago.


Asked if it was true that many of the independent marketers did not go to the depot to lift fuel, Fashola responded, “What are they going there to do? They have stopped our loading. All the tickets we have in the kitties of NNPC, they are not treating them; everything has been suspended.”


When our correspondent inquired to know if the suspension was done despite having paid for the product ordered, he replied, “Yes, our tickets were suspended for loading. They have not been attending to us since yesterday (Tuesday), and there is no official communication yet.


“It is a very bad situation for somebody who has paid for the product, maybe like two to three months ago, and all of a sudden, you stopped loading, maybe because you want to change the price. And it’s not the fault of that customer, because it is supposed to be cash-and-carry. So, I think the NNPC should look at that situation critically.”


It was learnt that NNPC usually prioritised major marketers while IPMAN members resorted to private depot owners, who sold at higher prices, leading to a wide gap between the prices offered by both categories of marketers.


“We’re usually forced to go to private depots, it’s not out of our own volition. We were forced to go there because of inadequate supply,” Fashola stressed.


Speaking on the Dangote refinery fuel, which is expected to hit the pumps soon, Fashola said marketers would monitor the situation till Friday.


“We are watching the development. We are monitoring it; we will wait, maybe by Friday we will know where we are going by the time the Federal Government makes a pronouncement as regards the price. There is no official communication yet.”

Tuesday, 3 September 2024

Minister Directs NNPCL To Sell PMS Above ₦‎1,000 To Curb Smuggling

 By Ayodele Ifasakin 

The Minister of State for Petroleum Resources, Heineken Lokpobiri has directed that the Nigerian National Petroleum Company Limited(NNPCL) must sell petrol above the landing cost, which currently stands at N1,117 per litre, to prevent the smuggling of the products to neighbouring countries.

Minister Directs NNPCL To Sell PMS Above ₦‎1,000 To Curb Smuggling




Lokpobiri who disclosed this in Abuja, adding that security agencies are complicit in smuggling activities.


He said unless the NNPC Ltd imports and sells petrol above the landing cost, smugglers would continue to move petroleum products to neighboring countries.



Recall that the group chief executive officer of the NNPCL, Mele Kyari had last month met the Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi on the rapid impact of the NCS’ “Operation Whirlwind” in reducing the smuggling of Premium Motor Spirit (also known as petrol) across Nigeria’s border communities.


During the meeting, Kyari said PMS evacuation to border states had decreased from 32 million litres per day to about 25 million litres within just two months.


The federal government had, in May 2023, removed the subsidy on petrol, which raised the price from about N197 to about N650 per litre.


While PMS is sold at an average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon. In other countries around the region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to the fuel price data obtained from trading economics statistics.


This development had heightened PMS smuggling out of Nigeria.


Lokpobiri’s stated at the event that NNPC’s sale of imported fuel at a price above the landing cost will bridge the potential profit gap and curb smuggling of the product to neighbouring countries for high profit-making by those involved in the shady business.