Business
Bad Petrol: Shortage worsens as filling stations run out of stock, close doors
- Lagos, Abuja worst hit
- NMDPRC issues directive to depots, stations
- FCCPC moves to sanction importers, distributors
FRESH indications, emerged, yesterday, that shortage of petrol in the country has worsened as many filling stations decided to shut their doors against motorists and other buyers in Abuja as well as Lagos, Oyo and Ogun states.
Sunday Vanguard learnt that while many of the stations had exhausted their stock of quality petrol, others still had commercial stock of the bad product which utilisation, last week, culminated in the damage of many automobiles, generators and other equipment.
Some marketers, who pleaded anonymity, said it will take a while to bring in new product, especially because of limited space for storage.
According to the marketers, the bad product will have to be properly evacuated from depots and filling stations to authorised places before the new product could be moved into the domestic market.
Meanwhile, the situation has culminated in the emergence of illegal or black market, whose operators were seen hawking the product at between N200 and N350 per litre, depending on location in Lagos and environs.
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NMDPRA orders depots, stations
Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, created to regulate operations under the newly established Petroleum Industry Act, PIA, responding to the development, yesterday, ordered all depots and filling stations to open their doors for inspection.
The inspection and quantification of the bad product will be carried out by various committees, including technical and commercial, established during the recent stakeholders engagement in Lagos.
FCCPC spits fire
Also yesterday, in line with Federal Government’s promise to deal with those behind the bad petrol, the Federal Competition and Consumer Protection Commission, FCCPC, commenced moves targeted at bringing importers and distributors of the product to book.
In a statement obtained by Sunday Vanguard, Executive Vice Chairman/Chief Executive, FCCPC, Babatunde Irukera, noted that its intervention was in consonance with Sections 17(a), (h), (i), (l), (t), (w), (y), (z), 131(a), (b), (d), 132, 133, 136 of the Federal Competition and Consumer Protection Act, 2018; and Sections 164(5)(b) and 210 of the Petroleum Industry Act, 2021.
Irukera stated: “The Federal Competition and Consumer Protection Commission has become aware that a certain but limited quantity of Premium Motor Spirit (PMS) that does not comply with established, applicable, and prevailing standards has been distributed and sold in certain parts of the country.
“The Commission in the process of its initial investigative assessment understands that consumers who purchased fuel that constitutes part of this consignment have experienced technical difficulties and or damage to their vehicles or other relevant equipment/machinery.
“In furtherance of its investigation; and pursuant to relevant laws, the Commission is currently engaging multiple regulators and entities relevant and involved in the PMS distribution value chain.
“The purpose of ongoing engagements include, addressing hardship or difficulties consumers may experience with respect to withdrawal of the implicated products from the market, securing assurance and promoting consumer confidence that supply constrains are addressed and will not persist and ensuring that the regulator’s recall effort under applicable laws and regulations including Petroleum Industry Act, 2021 and Federal Competition and Consumer Protection Act, 2018 (FCCPA) sufficiently excludes continuing distribution of the implicated product.
“It also includes encouraging and promoting additional and robust mechanisms to prevent reoccurrence and developing a meaningful and transparent mechanism to address demonstrated injury to affected consumers.
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“The Commission’s engagement with the key and relevant regulators/entities involved has been constructive and productive. The Commission commends this responsiveness and prioritisation of ensuring continuity of supply, containment of implicated product and sensitivity to consumer dissatisfaction and inconvenience.
“The Commission is continuing engagement, particularly with respect to a reasonable and acceptable mechanism to mitigate demonstrated injury and or loss experienced by consumers. The Commission intends to provide additional information as this rather dynamic situation evolves.”
Blame game
In a related development, Oando Plc, yesterday, joined other companies to deny its alleged involvement in the importation of the bad product.
In a statement obtained by Sunday Vanguard, the company stated: “Following media reports listing Oando as one of four importers that supplied methanol-blended Premium Motor Spirits (PMS) into the country, we hereby
state that Oando did not import and supply PMS that was adulterated or substandard.
“The PMS supplied by Oando met Nigeria’s import specification. We are committed to working assiduously with the NNPC and industry to identify the root cause(s) of the subsequent contamination of the PMS supplied.
“We want to assure the public that Oando as a responsible corporate citizen would not partake in the importation, distribution, or marketing of substandard petroleum products.”
Previously, MRS and Emadeb had refuted that they were among marketers that imported the bad fuel into the country.
A statement released by the lead partner, Emadeb Energy Services had explained that importation of the contaminated PMS was executed by a “member of the consortium.”
“Therefore, the blanket claims made against the consortium are misleading and contradict the actual events that happened; they do not fully reflect and/or represent what transpired. It is important to inform the public of these facts and provide clarifications relating to delivery of the said contaminated PMS to the country,”the statement said.
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‘’We also deem it necessary to protect our image as we have invested a lot in building our respective brands in the industry”.
The company, which alleged that Brittania-U Nigeria Limited (Brittania-U) was the sole supplier of the 90,000MT of PMS delivered via MT Torm Hilde, had added: “At the formation of the consortium in May 2021, Brittania-U refused to execute the Service and Consortium Agreement submitted in fulfillment of the award of the DSDP Contract.”
On its part, MRS had claimed that the petrol brought into its facilities was imported by Duke that works for Government.
Buhari, Reps reaction
President Muhammadu Buhari and the House of Representatives had, last week, talked tough over the bad fuel, saying those behind the importation must be held accountable.
Meanwhile, a source close to Brittania-U told Sunday Vanguard that the company is innocent of the allegations.
VANGUARD
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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