Business

Marketers behind petrol scarcity, high pump price – PENGASSAN

Published

2 years ago

December 16, 2022

Petrol marketers are behind the lingering product scarcity and the instability in pump price, oil workers under the auspices of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said yesterday.

The association accused the marketers of trying to force an increase in the pump price of petrol above the threshold approved by the Federal Government.

For weeks, Nigerians have been enduring pains to buy petrol at filling stations, especially those belonging to Independent Petrol Marketers Association of Nigeria (IPMAN), where products sell for as high as N300 per litre.

The government has pegged the pump price at between N165 and N169.

IPMAN yesterday announced that its members have dropped the plan to go on strike.

But PENGASSAN President Festus Osifo rejected a situation whereby non-state actors arrogate to themselves the power to determine the litre price of petrol far above government regulation.

Osifo spoke yesterday during the National Executive Council (NEC) meeting of the association in Abuja.

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He said it was disturbing that the Federal Government was equally demonstrating high level of culpability in the unwholesome situation by its silence and unwillingness to frontally and publicly address the harrowing experiences of Nigerians.

The PENGASSAN president said: “The persistent shortage of petrol has become a source of pain to the Nigerian people as the current shortages are been perpetuated by players in the downstream sector in order to hike the price far above the government-approved threshold.

“It is an added problem when non-state actors begin to arrogate to themselves the power to determine the price of a liter of fuel far above the rate pegged by the government in the current subsidy regime.

“It is more disturbing that the government is equally demonstrating high level of culpability in the unwholesome situation by its silence and unwillingness to frontally and publicly address the harrowing experiences of Nigerians in the current situation, because no concerned and responsive government will bury its head in the sands like the proverbial Ostrich while the citizens are being brutally exploited.”

Osifo urged security agencies, especially the Nigerian Customs Services (NCS) and Nigerian Immigration Services (NIS) charged with manning the nation’s borders, to stop the high rate of smuggling of the products across West African countries.

He added: “We demand that the various security agencies, especially the men of NCS and NIS charged with manning the nation’s borders, act professionally and in dictates to their oaths of allegiances to stop high rate of smuggling of the products across the West African countries.

“The various depots and other storage facilities, especially those owned and operated by the NNPC, should be upgraded and made accessible to all operators to lift the product.

“Consequently, we demand an immediate end to the avoidable, unnecessary, crippling and pain-inducing fuel shortages and unapproved price hike in the country. No excuse is good enough to cripple the country. If there are challenges, they should be fixed; we have a government in power to fix challenges, not to make excuses.

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“We are ready and willing to collaborate with the Federal Government and assist in all ways possible to overcome the country’s present challenges. But we caution it not to take the Nigerian people for granted as it seems to be manifestly doing on various crucial national issues.”

The PENGASSAN chief also demanded the prosecution of those arrested in connection with the oil theft be prosecuted and if found guilty be made to face the consequences.

He urged the government to sustain the current effort in restoring the vandalised pipeline and increasing crude oil production.

IPMAN’s National Operations Controller, Mr. Mike Osatuyi, said markets have no plan to shut down their stations as being speculated.

According to him, the Nigerian National Petroleum Company Ltd (NNPCL) has promised to henceforth, sell directly to IPMAN members at official rate of ex-depot price.

He said the backlog of IPMAN members’ tickets, which was over 2,000 currently, was being cleared.

Osatuyi said: “Nigerians should not engage in any panic buying as we are entering Christmas period. Our wide network nationwide makes us the perfect outlets to ensure sustained distribution of petroleum products across the country.”

On December 10, the Ogun State chapter of IPMAN threatened to shut down all its outlets across the state over an ultimatum issued to marketers by the Department of State Security (DSS).

The DSS had directed all petrol stations nationwide to sell fuel at the regulated price, and threatened to shoot down defaulting stations.

The petrol supply situation in Lagos, Abuja and other cities has remained unstable.

The Nation

Related Topics:Featured marketers PENGASSAN petrol

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Naira exchanges N1,650/$ in parallel market

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3 hours ago

January 1, 2025

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Naira exchanges N1,650/$ in parallel market

Yesterday, the Naira appreciated N1,650 per dollar in the parallel market, compared to N1,655 on Monday.

Similarly, the Naira appreciated to N1,535 per dollar in the official foreign exchange market.

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Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

Published

15 hours ago

December 31, 2024

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Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

The exchange rate between the naira and the dollar ended the year at N1,535/$1 representing a 40.9% depreciation for 2024.

The official exchange rate between the naira and dollar closed in 2023 at N907.11/$1 thus depreciating by 40.9% for the year which compares to a 49.1% devaluation at the end of 2023.

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Nigeria introduced several foreign exchange policies in 2024 as the central bank expanded on market-friendly forex policies to attract foreign investors.

Meanwhile, on the parallel market where the exchange rate is sold unofficially, the naira exchanged for N1,660 to the dollar when compared to N1,215/$ according to Nairametrics tracking records. This represents a 26.8% depreciation.

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

Business

Warri refinery: Marketers hopeful of further petrol price drop

Published

1 day ago

December 31, 2024

Trends Admin

Warri refinery

Warri refinery: Marketers hopeful of further petrol price drop

There was excitement on Monday as the Warri Refining and Petrochemical Company (WRPC) commenced partial production.

This is coming after nearly a decade of dormancy as the 125,000 barrels per day refinery was confirmed to be working at 60 per cent capacity, according to the Nigerian National Petroleum Company Limited (NNPCL).

The refinery, inactive since 2015 due to prolonged repairs, reportedly began refining activities last Saturday at its Area 1 plant, where crude oil was successfully pumped into the system.

This was coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.

The NNPCL Group Chief Executive Officer, Mele Kyari, announced the resumption of operation at the Warri Refinery during a tour of the facility on Monday.

Kyari was seen in a video posted by Channels TV addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.

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Earlier, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.

He said though the repairs on the facility were not 100 per cent complete, operations had commenced.

He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”

With the addition of Warri Refinery, Nigeria’s refining capacity has further increased with marketers anticipating a further reduction in price of premium motor spirit (PMS).

The 650,000-barrel Dangote Refinery has commenced production in addition to the Port Harcourt Refinery with a total capacity of 210,000 barrels per day (bpd) comprising 60,000 bpd for the old plant and 150,000 bpd for the new plant.

It’s good for business, prices may reduce – Marketers

Major Energy Marketers’ Association of Nigeria (MEMAN) and the Independent Marketers Association of Nigeria (IPMAN) welcomed the revival of the Warri refinery, saying it would deepen competition, diversify supply and ultimately resort to price reduction.

Executive Secretary of MEMAN, Clem Isong in a chat with our correspondent stated that the Warri Refinery is the shortest route to the North, describing its revival as good news.

“The market becomes more competitive and we are diversifying supply,” he said.

On whether it would lead to price reduction, he stated, “There are many factors that affect price, competition is always good and you can always get your product at the best price.”

National Public Relations Officer of IPMAN, Alhaji Olanrewaju Okanlawon in a chat with our correspondent said, “If there is excess supply, it will keep bringing down the price. We now run a free market and it is about demand and supply. It will continue bringing down the price. It will decongest Lagos.”

Energy expert, Dr. Ayodele Oni said the resumption of Warri Refinery would boost the local refining capacity in addition to enabling the country to sell to other neighbouring countries.

“We can refine more and even have some to sell. We now stop being hewers of wood and drawers of water. We add value to what we produce and can make/ do more with our base resources. This is very pleasant news,” he said.