The Pacesetter Frontier Magazine

Tag: fuel scarcity

  • Fuel scarcity may have perilous effects on elections’ logistics – INEC

    Fuel scarcity may have perilous effects on elections’ logistics – INEC

    The Independent National Electoral Commission (INEC) has expressed fears that ongoing fuel scarcity may affect its logistics for the forthcoming elections.

    Its chairman, Prof. Mahmood Yakubu stated this, yesterday, at a consultative meeting with the National Union of Road Transport Workers (NURTW).

    He said challenges with logistics have remained a perennial problem in elections administration in Nigeria, saying for this year’s polls “our arrangements may be negatively affected by the non-availability of products.”

    He said for this reason, the commission is collaborating with the NURTW and the Marine Workers’ Union of Nigeria (MWUN) to ensure hitch-free arrangements on election day.

    “The commission is aware that this is an enormous task. Election is the largest deployment a nation periodically undertakes and mobilisation of vehicles for election is a large and complex exercise. However, this comes only once in four years. What is critical here is forward planning. We have presented to the union the number and specifications of the vehicles required for the election. We have also indicated to you the locations where the vehicles are needed. Happily, your members are spread across the country. Therefore, vehicles conveying personnel and materials will not travel long distances. In fact, all movements should be within a state and preferably within local government areas. There should be no inter-state movement.

    “We are working with the security agencies to ensure the safety of your members and their vehicles during the election. Just like our election duty personnel, their safety is paramount. That is why in the most recent elections conducted by the commission, the leadership of your union at state level attended several meetings with our officials and the security agencies.”

    The INEC chairman said the commission shares the transport union’s concern about the fuel situation and its impact on transportation on election day.

    “The truth is that our arrangements may be negatively affected by the non-availability of products. For this reason, the Commission will this afternoon meet with the Nigerian National Petroleum Company Limited (NNPCL) to look into ways to ameliorate the situation,” he said.

    However, the NNPCL Group General Manager Melee Koko Kyari has assured of adequate fuelsupply on election days.

    Kyari gave the assurance during a meeting with INEC leadership in Abuja, yesterday.

    “We know that logistic is a major component of electoral duties. NNPC has always supported INEC, in making sure that fuel is made available to all vehicles that are involved in the electoral process.Needless to say that there was no formal framework for that, and there were no even exact formal requests for this. All the same, we are always conscious of the necessity to provide support to INEC whenever elections take place.”

    (Sun)

  • Amidst scarcity, Nigerian govt denies increasing petroleum pump price

    Amidst scarcity, Nigerian govt denies increasing petroleum pump price

    The Nigerian government on Friday said it has not approved any increase in the pump prices of petrol across the country.

    The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this in a statement issued by his senior adviser on media and communication, Horatius Egua.

    Mr Sylva spoke as Nigeria continue to queue for fuel in filling stations amidst reports of increase in the pump price of petroleum products.

    Mr Sylva claimed that President Muhammadu Buhari has not approved any increase in the price of PMS or any other petroleum product.

    “There is no reason for President Muhammadu Buhari to renege on his earlier promise not to approve any increase in the price of petroleum motor spirit (PMS) at this time,” the minister was quoted as saying.

    According to him, the president is sensitive to the plight of the Nigerians, and has said repeatedly that he understands their challenges, and would not want to cause untold hardship for the people.

    A Guardian report said Thursday that the Nigerian government quietly approved ₦185 as the new petrol pump price per litre. The newspaper reported that the approved pump price was communicated to major marketers in a memo early Thursday.

    But Mr Sylva on Friday claimed that the government will not approve any increase of PMS secretly without due consultations with the relevant stakeholders.

    “The President has not directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority or any agency for that matter to increase the price of fuel.

    “This is not the time for any increase in the pump price of PMS,” he said.

    He noted that what was playing out was the handiwork of “mischief makers and those planning to discredit the achievements of the president in the oil and gas sector of the economy.”

    The minister appealed to Nigerians to remain calm and law-abiding as the government works towards bringing normalcy to fuel supply and distribution in the country.

    In recent months, especially since the government announced plans to remove fuel subsidies, Nigerians have had a hard time getting petroleum products at filling stations.

    The scarcity has persisted despite the government’s repeated claims it had enough petroleum products in stock. In many parts of the country, operators of filling stations sold at prices higher than the government’s pump price.

    (Premium Times)

  • Fuel sells N175/litre, marketers plan strike, queues worsen

    Fuel sells N175/litre, marketers plan strike, queues worsen

    Some filling stations on Wednesday dispensed Premium Motor Spirit, popularly called petrol, at over N175/litre, higher than the government-approved N165/litre price, as oil marketers insisted to embark on strike from next week if the government fails to pay them (marketers).

    It was gathered that some outlets in Lagos that sold the commodity at N169/litre last week had to adjust their pumps on Wednesday, as they dispensed PMS to motorists at N175/litre.

    Also, queues by motorists at filling stations, which had persisted in Abuja and environs since February this year, gradually resurfaced in parts of Lagos on Wednesday.

    Our correspondent also observed that many filling stations, particularly those belonging to members of the Independent Petroleum Marketers Association of Nigeria, were shut due to a lack of products to sell to customers.

    Gegu Oil, Eterna and Oando filling stations at the Dutse end of the Kubwa-Zuba Expressway in Abuja, for instance, had remained shut for days for lack of products to sell, despite the heavy queues of motorists in a nearby NNPC retail outlet.

    Amidst these concerns, oil marketers under the aegis of Abuja-Suleja IPMAN, stated on Wednesday that their proposed strike would go ahead next week if the government fails to substantially clear the bridging claims for transportation of petrol being owed marketers.

    Last week, oil marketers warned that Nigeria could witness “the mother of all queues” soon if the Federal Government fails to pay the 12 months bridging claims being owed operators in the downstream oil sector.

    They had also denied being paid N74bn by the Federal Government as bridging claims for the transportation of petroleum products.

    The Federal Government through its Nigeria Midstream and Downstream Petroleum Regulatory Authority had said last week that it paid N74bn as bridging claims to oil marketers for the transportation of petroleum products across the country in seven months.

    But the Secretary, Abuja-Suleja IPMAN, Mohammed Shuaibu, whose unit covers Abuja, Kogi, Niger and parts of Nasarawa and Kaduna, told our correspondent on Wednesday that though some members had confirmed the receipt of payments, a host of others had yet to receive theirs.

    “Few of our members have confirmed receiving alerts, but the majority have not been paid and so the decision to embark on the mother of all strike still stands, except we get our payments,” he stated.

    Shuaibu added, “Many independent marketers are closing shop and because of these debts. We cannot continue to fold our hands. We are sorry about the hardship, but the government has to pay us, otherwise we will withdraw our services.”

    Reacting to the concerns, the spokesperson, NMDPRA, Kimchi Apollo, earlier told our correspondent that the petrol price had not changed from the approved N165/litre price, as he also stated that efforts were on to settle to bridging claims being owed the marketers.

    Meanwhile, there were indications that long queues were beginning to resurface in Lagos State and its environs on Wednesday, as findings showed that filling stations were beginning to sell petrol above N175 per litre.

    The Federal Government and oil marketers are yet to come to a compromise on how much a litre of petrol should be sold, and marketers are beginning to sell products at prices not approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

    The PUNCH on Wednesday, noticed that while most filling stations in Lagos in Ogun state were under lock and keys, long queues were beginning to reappear at few stations with products.

    A source close to the matter told The PUNCH that marketers met with Chief Executive, NMDPRA, Farouk Ahmed, in Abuja on Tuesday, where he pleaded with them not to increase the price.

    According to our source, Farouk has promised that the N74bn bridging claims owed marketers would be paid any time soon.

    Marketers, however, said they could no longer bank on the Federal Government’s promise to pay the claims, while they continue to run at a loss for selling petrol at N165 per litre.

    Marketers had held a similar meeting with the NMDPRA two weeks ago, where they aired their grievances on the high costs of running their petrol stations.

    Also, the Depots and Petroleum Products Marketers Association of Nigeria had hinted that it would be impossible for its members to keep prices at N165/litre when the landing costs to their stations were already on the high side.

    (Punch)

  • Fuel scarcity: IPMAN directs members not to sell fuel above N165/litre

    Fuel scarcity: IPMAN directs members not to sell fuel above N165/litre

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has instructed its members not to sell Premium Motor Spirit (PMS), also known as petrol, for more than the approved pump price of N165 per litre.

    This comes as a reversal of its earlier directive to its members to sell petrol at N180/litre.

    Recall that the Lagos Chapter of IPMAN through its secretary, Akeem Balogun on Monday had announced that it would no longer be able to sell petroleum below N180.

    However, IPMAN’s National President, Chinedu Okoronkwo in a joint press conference with the Association of Distributors and Transporters of Petroleum Products (ADITOP) in Abuja directed members to stick to the approved price of N165 per litre.

    He acknowledged that members of the association had called for an increment in petrol price, but noted that the Nigerian National Petroleum Corporation Limited (NNPC) had released sufficient stock of Petroleum products from its tank farms.

    He said, “The cost of doing business has changed, and it is only NNPC that imports Petroleum products. Our members in Lagos were getting the products at N170 to N173/litre, and that is why they were calling for an increment in price of petrol. But yesterday, NNPC released Petroleum products from its tank farms. That is why we are grateful to them that, with this product we are now accessing at N148.17k, status quo ante must be maintained moving forward; and from what they told us they have sufficient stock of Petroleum products that can last up to 32 days.”

    The IPMAN boss further disclosed that Petroleum marketers and transporters had begun negotiations and engaged the services of a consulting firm, Benham Group to recover money owed them for the supply of petroleum products.

    “Our business requires technology, that is why we brought a seasoned financial expert and we have been able to recover a lot of funds in other countries and Nigeria.

    “The incessant accidents and destruction of trucks on the road, banditry and kidnapping is the reason we are bringing the insurance company to help us,” Okoronkwo explained.

    On his part, the National President, ADITOP, Alhaji Mohammed Danzaki, said ADITOP and IPMAN are the ones suffering since they need returns for their investments.

    “NNPC has done a lot to import the product but the main issue is the transportation.

    “We have not been getting our payments. That’s why we engaged a financial expert, Benham Group, to recover our money for Nigerians to get regular supplies in the fuel stations,” Danzaki said.

    (Sun)

  • Inflation: MAN calls for FG’s intervention as diesel price hit N720

     

    The Manufacturers Association of Nigeria (MAN), has called for Federal Government’s urgent intervention to support the production of goods, as cost of diesel hits N720 per litre.

    Mr Lanre Popoola, the Chairman, Manufacturers Association of Nigeria (MAN), Oyo, Osun, Ekiti and Ondo branches, stated this in Ibadan on Sunday, while speaking on the increase of prices of petroleum products and lack of power supply.

    “It is a difficult thing ensuring production at this time, as diesel has gone up to N720 and N730 per litre.

    “It is getting extremely difficult to produce and I don’t know how we are going to cope because 70 per cent of industries are running on diesel, there is no light.

    “There is no power supply, we are having 30 per cent of what it used to be, whereas the disposable income of people is not increasing and the cost of products is going up.

    “Even in my factory now, we are only running one shift instead of three shifts of eight hours each.

    “Other businesses are also running limited hours on diesel as they cannot afford to use generators all day,” Popoola added.

    The chairman noted that, if the situation persisted, it could lead to bigger issues that would further affect the nation’s economy and increase the hardship of Nigerians.

    “The worst part is that diesel suppliers cannot agree for organizations to make a flexible payment plan such as instalments, while they deliver the products in trust.

    “They cannot again supply you with diesel and allow you to pay in two weeks. It is either you do cash and carry, or pay ahead, because they too cannot predict the cost of the product.

    “And I don’t blame them, imagine you bought diesel last week at N630 per litre and the next day it is sold for N730 per litre, how will you replace your stock,” he said.

    Popoola stated that the way forward was for the government to come in and assist manufacturers, by giving some rebate on diesel, adding that, that was the only lifeline.

    “Aside manufacturers, for transporters that are bringing food from the North or taking products to the East or Lagos, now the cost of their logistics would have doubled by 100 per cent if not 200 per cent. “May be the government can come in and do a kind of palliative for us, it is either we have light 24 hours per week, to run our factories or do a palliative on diesel.

    “But unfortunately, we don’t produce diesel in this country, if the refineries are working, it is a different ball game, the country would have had it better now, if the refineries are working.

    “So the more the international prices of Petroleum products go up, the higher the prices of what we are going to get from them,” Popoola said.

     

    (Sun)

  • Adulterated fuel: Buhari approves sanctions against culprits

     

    As the Federal Government makes effort to clear the long queues occasioned by petrol scarcity brought about as a result of supply of adulterated petrol, President Muhammadu Buhari has approved the sanctioning of those responsible .

    Last month, the government had said methanol, a substance that is usually present in petrol, found in the product exceeded Nigeria’s specification, led to the affected fuel being kept off the supply chain, resulting in long fuel queues in the nation’s capital and other cities across the nation.

    Oil marketers had reportedly estimated that about 100 million litres of contaminated petrol were imported .Minister of State for Petroleum Resources, Timipre Sylva, had after briefing President Buhari last Tuesday said investigation was on to get to the bottom of the matter. But a top source who was present at last week’s Federal Executive Council (FEC) presided over by Vice President Yemi Osinbajo said a plan to end fuel scarcity and ensure a repeat does not happen again has been approved.

    “The plan is designed to do everything necessary to end the scarcity quickly and hold those responsible for it in the first instance responsible so as to avoid a repeat. The plan which was presented to FEC last week had been signed off previously by President Buhari before he left the country last Sunday with clear goals that included a conclusive determination on the initial cause of the scarcity with attendant consequences imposed.

    “Indeed, under the Buhari administration what used to be an incessant and recurring decimal of fuel scarcity had been reduced to it barest minimum until the recent case of adulterated PMS, an incident that incurred the president’s wrath.

    “But the plan drawn up by the NNPC executives had won the endorsement of the president and the praise of the vice president, especially because of the 24-hour round the clock operations, including 24-hour sales in major supply centres in the country and the 24-hour continuous loading at all depots…”

     

    (Sun)

  • Scarcity of aviation fuel: domestic airlines complain

     

    Domestic airlines are currently groaning under acute scarcity of aviation fuel, popularly called Jet A1, with only few operators getting supplies from marketers.

    This is just as the Chief Executive Officer of Cleanserve Energy, a major marketer of Jet A1, Mr Chris Ndulle, told Vanguard that the current price of crude oil in the international market and the raging Ukraine-Russia war have affected price and supply.

    Vanguard investigation revealed that the price of Jet A1 has been oscillating between N580 and N600 per litre in the last few days, compared to the N450 it was previously sold.

    An official of one of the domestic airlines, who does not want to be named, told Vanguard, yesterday, that “the price of jet A1 touched N600 yesterday, reason those who have been keeping quiet shouted.”

    The high cost of aviation fuel, which accounts for almost 40 per cent of airline’s cost of operations, is one of the reasons advanced recently by airline operators for increasing the cost of tickets. The least ticket for an hour flight currently goes for N50,000.

    A statement from Ibom Air on the current state of the scarcity, read: “We have encountered a situation today where aviation fuel is scarce and, therefore, unavailable at almost all our flight destinations. This has significantly impacted our flight schedule today and may do the same tomorrow.

    “We sincerely apologize to all our passengers affected by the current situation. At this time, we have no indication when the issue will be resolved. However, we are working with our fellow airlines and fuel suppliers to find a solution.”

    Arik Air also, yesterday, said: “Nigeria airlines are currently experiencing acute scarcity of Jet A1 and this situation is having serious impact on our operations.

    “The commodity is not readily available across the country and where available goes for between N590 and N625 per litre.

    “We are appealing to our esteemed customers to please bear with us as we engage the oil marketers and other stakeholders on ways of resolving the current jet fuel situation.”

    Dana Air had also cried out about the crippling effect of the Jet A1 scarcity on their operations. The airline management said the “aviation fuel crisis is taking a new turn and has continued to have effect on our operations in the last few weeks.”

    Crude oil price, Ukraine/Russia war affecting price, supply —Marketer

    Speaking with Vanguard on the cause of the scarcity and current high price, Chief Executive Officer of Cleanserve Energy, Mr Chris Ndule, said the current price of crude oil in the international market had affected the prices of all petroleum products, aviation inclusive.

    Ndule said: “It is not only aviation fuel price that has increased, other petroleum products prices have also increased.

    ‘’This is partly due to the current price of crude oil in the international market, which is going for between $110 and $125 per barrel.

    “The raging war in Ukraine has affected international trade. For instance, I was to bring in some shipment of Jet A1. But my foreign partner decided we should hold on and watch the international shipping routes.”

    (Vanguard)