Regulator vows to sanction petrol marketers breaching official prices, shuts down 7 defaulting depots – Newstrends
Connect with us

Business

Regulator vows to sanction petrol marketers breaching official prices, shuts down 7 defaulting depots

Published

2 years ago

on

Chief Executive Officer of the NMDPRA, Mr. Farouk Ahmed

The Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) yesterday vowed to revoke the licences of petrol marketers selling above the controlled prices as well as those hoarding the product in their depots.

Speaking in Abuja, the Chief Executive Officer of the NMDPRA, Mr. Farouk Ahmed, explained that in the last few days several depots had been shut down for selling above the regulated prices.

He reiterated that as of yesterday, the nation still had at least 30-day sufficiency, explaining however that the global crisis caused by the Russian and Ukrainian war in addition to the fluctuation in the value of the naira had affected the even distribution of petroleum products, particularly from the waterways to the depots through truck-ins to the retail stations.

Ahmed noted that several meetings had been held with petrol marketing companies, independent marketers, transporters, the suppliers-the Nigerian National Petroleum Company Limited (NNPC) as well as other interested parties to see how the distribution bottlenecks could be addressed.
“Now, the market is not deregulated. So, we are still in a regulated environment as far as petrol is concerned,” Ahmed added.

READ ALSO:

According to him,  President Muhammadu Buhari had approved an additional N10  for transporters to cover the transportation costs as a result of the high costs of diesel which he said is the main source of transporting other products within the country.
He pointed out that one of the constraints within the distribution system had been the increase in the bunkers’ freight rate from between $16,000 to $19,000 per day to about $35,000 to $40,000 per day within Lagos and even more to Calabar.

“We sat down with the marketing companies and agreed to give them some palliatives through the NNPC, as well as through our regulatory control areas. But the market has continued to increase the cost of ex-depot prices.
“It has gone beyond expectation and reason. And Nigerians have been suffering due to that because when you talk to a retail outlet owner, he will say this is how much he bought it from the depot owner. But NNPC Limited is the sole importer. And they sell these products to the marketing companies within acceptable import parity pricing benchmarks.

“So, even with the additional cost of transportation, by trucking or by sea,  the acceleration or the increase in the ex-depot price was completely outrageous,” Ahmed explained.

The NMDPRA’s CEO noted that as a responsible regulator, the organisation was concerned about the yearnings and sufferings of innocent Nigerians who have no voices and had therefore decided to take action, not necessarily to destabilise the market but to strengthen it.
“We had intelligence from other relevant law enforcement agents, in addition to the intelligence information we had within our own system, so we corroborated all the information that we gathered. We had to take action, and the first action we took a couple of days ago was to shut down some of the depots where they have products.

READ ALSO:

“A lot of them have breached that trust or regulatory requirement, but we’ll have to start from somewhere. So we shut down about seven depots in Lagos and other parts. We have shut down Aldova.

“Aldova is under maintenance; so, we shut down where they had their products and they were selling beyond the controlled price and Aldova is a major marketing company. You know, they are getting their products directly from NNPC.
“And they’re also getting it with some level of comfort because it’s not like cash and carry, so they had no reason to increase their price beyond reason. Then, of course, Rainoil in Lagos and all their facilities,” he stated.

In Warri, Oghara, Port Harcourt and Calabar, Ahmed added that some depots had also been closed for breaching the rules.
“The next level is the continuation of what we are doing. We have got to a level where marketers understand their responsibility to the consumers. What do you do next? We can revoke any licence.

“We don’t need to shut their depots. We don’t need to shut down their facility or retail outlet. We just have the mandate as a regulator to withdraw or revoke their licence. And once we revoke your licence, we notify all the relevant stakeholders that deal with you in the business to also know that if you do not have a licence, if they deal with you, they’re also breaching the regulation and they’re breaching the process and that’s exactly what we are going to do because we cannot continue like this. Nigerians have suffered,” he added.

According to him, the board of directors of NMDPRA had met and agreed and had given the go-ahead to shut down any defaulting facilities.
“We have enough products in the country. As of last night, we had about 30 days sufficiency and I will tell you that about 10 days of that sufficiency is on land and there has been even distribution by trucking,” he added.

Thisday

Related Topics:
Advertisement

Business

Tron Founder joins Trump-backed crypto project, invests $30m

Published

20 minutes ago

on

November 27, 2024

By

Justin Sun

Tron Founder joins Trump-backed crypto project, invests $30m

Justin Sun, the founder of the Tron Blockchain has joined the World Liberty Financial project as an advisor after investing $30 million into the project.

The World Liberty Financial project is backed by the Donald Trump family and aims to become a leading crypto project in the global crypto space.

Justin Sun joined the project as an advisor after purchasing $30 million worth of WLFI tokens making him the largest shareholder in the project.

The development was announced via the official X page of the World Liberty Financial project welcoming the Crypto founder to the project.

“Exciting Announcement! 

We’re honored to welcome @justinsuntron as an advisor to World Liberty Financial (WLFI)! Justin is the founder of @TRONDAO an advisor to @HTX_Global, and a supporter of @BitTorrent 

. A graduate of the University of Pennsylvania, he recently won Sotheby’s auction for the iconic banana artwork.  

#TRON is among the world’s top 10 cryptocurrencies and one of the largest public blockchains. Justin’s insights and experience will be instrumental as we continue to innovate and grow. Welcome to the team, Justin!” WLFI tweeted

READ ALSO:

Justin Sun’s $30 million investment in the project boosted the sales traffic of its native token raising it from $21 million to $53 million.

The increased inflow of capital into the project better positions the project to achieve its goals which include a stablecoin-focused credit card and infrastructure enhancement.

Justin Sun brings onboard his wealth of experience as the founder of one of the Top 10 blockchains in the industry by market cap and his advisory role at HTX and BitTorrent.

Sun’s previous track record of bold investments and innovation is expected to be a huge boost to the WLFI project.

The WLFI gig is another feather to the hat of Justin Sun as he expands his activities in the crypto space. The Tron founder recently purchased a 6.3 million NFT art in a bid to revive a stagnant sector.

The World Liberty Financial project is backed by Donald Trump’s family and it looks to promote the mass adoption of Defi and stablecoins. This project aligns with the Donald Trump pro-crypto mantra and has all the credibility a project of that status needs.

Tron Founder joins Trump-backed crypto project, invests $30m

Continue Reading

Auto

Toyota By CFAO showcases latest Land Cruiser Prado, others at P’Harcourt Open Day 

Published

1 hour ago

on

November 27, 2024

By

Toyota By CFAO showcases latest Land Cruiser Prado, others at P’Harcourt Open Day 

Toyota By CFAO, the authorized distributor of Toyota vehicles in Nigeria, has commenced a three-day special display of the latest new Toyota models from the company at an Open Day organised in Port Harcourt, Rivers State, for residents of the city and its surrounding areas.

The Toyota By CFAO Open Day holds from Tuesday, November 26 to  Thursday, November 28, 2024, according to a statement by the company.

The event running from 9am to 5pm each day is taking place at the auto company’s showroom located at 184B, Trans-Amadi Industrial Layout, Port Harcourt.

It discloses that the exciting event will feature the highly anticipated 2024 Toyota Land Cruiser Prado, one of Toyota’s flagship models, alongside a range of other exceptional vehicles tailored for the Nigerian market.

This, it notes, is an exclusive opportunity for attendees to explore the latest in automotive excellence, discover new vehicle options, and benefit from Toyota By CFAO’s End of Year Bonanza.

General Manager of CFAO Mobility Port Harcourt, Julius Fasetire, encourages all residents to “come witness history in motion as we proudly unveil the All-New 2024 Toyota Land Cruiser Prado.

“Be among the first to explore this remarkable masterpiece and discover our full range of Toyota vehicles. Don’t miss out on the chance to experience automotive excellence and enjoy a free diagnostic check for your Toyota vehicle!”

The 2024 Toyota Land Cruiser Prado has already generated excitement across the country, following its recent unveilings in Lagos and Abuja.

The product is quickly becoming one of the most sought-after sports utility vehicles in Nigeria, appealing to both corporate and individual buyers.

With over 11.3 million units sold globally in more than 170 countries, the Land Cruiser Prado is renowned for its rugged off-road capabilities and comfort for everyday driving.

The firm says this year’s model comes in two distinctive editions – the Limited Edition (First Edition) and the Adventure Edition – both equipped with a 2.4L turbocharged gasoline engine and an 8-speed automatic transmission, ensuring superior performance both on and off the road.

Toyota By CFAO also says it ensures that genuine parts and a comprehensive 3-year/100,000 kilometre warranty are available for all customers.

In addition to the Land Cruiser Prado, the event will showcase a variety of other popular Toyota models including the Belta, Rumion, RAV4, Camry, and Hiace.

The Open Day, it stresses, promises to be a must-attend event for anyone interested in exploring the world of Toyota vehicles, from luxury to practicality, and experiencing firsthand the future of automotive technology.

The company says more details about the rich offering of Toyota in the Nigeria market can be obtained from https://www.toyotabycfao.ng/.

Continue Reading

Business

Nigeria’s foreign reserves in marginal increase, now $40.88bn 

Published

5 hours ago

on

November 27, 2024

By

Nigeria’s foreign reserves in marginal increase, now $40.88bn

 

Nigeria’s foreign reserves rose to $40.88 billion as of November 21, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said.

Cardoso disclosed this on Tuesday at a press conference after the Monetary Policy Committee’s 298th meeting in Abuja.

He said the external reserves grew from $40.06 billion at the end of October to $40.88 billion in November.

The amount represents an increase of $82 million or 2.05 per cent in 21 days.

“The external reserves rose marginally to 40.88 billion as of 21 November 2024, from 40.06 billion at the end of October 2024, available to finance 17 months of imports,” he said.

However, from the apex bank’s website, the increase in Nigeria’s foreign reserves showed $40.27 billion on November 22.

Cardoso also said, “The process of getting us where we are in terms of reserves has been a long one”.

“It is a clear indication that the policies we have put in place are certainly yielding fruits,” he added.

“However, and it’s very important to make a distinction here and to reiterate the fact that reserves are there for a multiplicity of different purposes, not least of which is to create buffers in the event of unanticipated shocks.

“So they are not there to simply whittle away. They are there to be used to more or less defend yourself where that becomes necessary

“And when we talk about shocks that are not anticipated, I think we can see how the global economies are.”

Cardoso also said the bank would continue to intensify efforts to stabilise the currency and prices.

The CBN governor said, “The currency has been stable compared to what it was in June”.

But he said for the value of the country’s currency to be stable, there must be increased exports and diversification of the economy.

Cardoso said diaspora remittance had increased due to policies put in place.

He commended those in the diaspora for helping the country accomplish over $600 million in remittances.

Continue Reading

Trending