Business

Bad fuel: Petrol scarcity persists in Abuja, Lagos, others, despite govt’s assurances

Published

3 years ago

February 28, 2022

Sells at N400/litre at black-market •We’ve adequate supply —FG
•NUPENG directs members to compile names of marketers hoarding PMS, increasing depot prices

Despite the Federal Government’s promises that petrol scarcity would be over weekend, the scarcity of the product continued, yesterday in Abuja, Lagos, Oyo and Ogun states.

Checks by Vanguard showed that there were long queues in Abuja, Lagos and other states, mainly because of the difficulty associated with getting supply.

The Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, also yesterday directed its members to start compiling names of marketers hoarding Premium Motor Spirit, PMS, commonly known as petrol, or selling above official depot price today.

National Operation Controller Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, said his members were still finding it difficult to source the product from depot owners.

According to him, independent marketers are still sourcing petrol at N190 per litre, against government’s N148 per litre regulated price, thus making it difficult for them to sell at the N162/N165 per litre regulated price.

Consequently, many of their outlets were seen shut, while long queues of automobiles took over all available space at the stations.

In Abuja, queues at petrol stations grew longer at the weekend as the impact of supply disruption entered the third week, despite assurances of quick resolution by the Federal Government.

At filling stations monitored by Vanguard, motorists explained that they queued for over four hours before they could obtain petrol at the city centre.

At the suburbs of the nation’s capital, the scenes were chaotic as motorists struggled to get into few filling stations dispensing petrol.

As expected, while motorists had difficulty in purchasing petrol, black markets openly hawked the product in kegs, with price ranging from N350 to N400 per litre.

Speaking to Vanguard from Lagos, the Executive Secretary of Major Oil Marketers Association of Nigeria, MOMAN, Mr. Clement Isong, expressed optimism that normalcy would return at the end of the week.

Mr. Isong said MOMAN was working with government agencies to improve supply of petrol across the country.

He said: “The important thing now is to stop the queues and it is only after that we can go back and check how much it cost and then submit our bills to the government.”

He disclosed that while supply had improved greatly, it would take another week to restore normalcy “if we continue getting good supply”.

On his part, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, who spoke from Port Harcourt, said getting supply had been particularly challenging for independent marketers.

Ukadike said with the product not available at government-owned depots, independent marketers had to resort to buying from privately-owned depots at a cost far higher than what the government regulated.

He noted that most marketers were struggling to cope with the crisis, saying “when we signed bulk purchase agreement, there was a quantity of petroleum product that the NNPC agreed to supply to us monthly in terms of allocation but now that agreement has been breached by the NNPC, we are resorting to hustling for fuel wherever we can get it.

“That is because if you don’t do that, it becomes impossible for you to pay staff and pay several taxes imposed by various government agencies. The impact is serious on us and that is why you are seeing most filling stations shutting down.”

Ukadike also expressed optimism that the supply difficulties would ease in the coming week, stressing that “the queues are still there and we are having challenges getting supplies. But I heard that a vessel is coming in (into Port Harcourt) by next week. The supply from the vessel will relieve the remaining congestions we have.

“The biggest challenge is the high price we are getting the product because it is only at the government depots that you can get supply at government approved rate. So with this vessel coming next week, it will help to alleviate the sufferings of the masses,” he added.

The government had said that the distribution of petrol would soon normalise after it recalled the bad product imported into the country last week.

The government had given the assurance at a briefing in Abuja, adding that concerted efforts were being made to end the challenges in the supply of petrol.

It had explained that it was expecting over 2.3 billion litres of Premium Motor Spirit, PMS, in the country by the end of February and that over one billion litres of the product were currently being distributed nationwide.

Also, the Chairman, House of Representatives Committee on Petroleum (Downstream), Abdullahi Gaya, had also assured Nigerians that his committee would handle companies which imported methanol-blended Premium Motor Spirit, PMS, into the country.

Meanwhile, the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has directed its members to, from today, start compiling names of marketers hoarding Premium Motor Spirit, PMS, commonly known as petrol, or selling above official depot price.

Recall that the Union had Saturday given marketers 24 hours to revert to the official depots price of petrol or risk unpleasant consequences, claiming that unscrupulous marketers were selling PMS from the depots at prices above the official rate.

Speaking with Vanguard yesterday, President of NUPENG, Prince Williams Akporeha, said “as a follow-up to the 24 hours ultimatum to the marketers, the union has directed members to, from tomorrow (today) start compiling names of marketers who are hoarding petrol or selling PMS from the depots at prices above the official rate for sanction.”

On what is the nature of the sanction, he said: “We have to keep that our chest until the time.”“NUPENG in statement Saturday issuing a 24 hours –ultimatum to marketers through its President and General Secretary, Prince William Akporeha and Afolabi Olawale, respectively, among others, said “Our attention and empathy have been drawn to the harrowing experiences and pains of the general public due to the exploitative and unscrupulous activities and tendencies of Petroleum Products Marketers who taking advantage of the seeming gaps and teething challenges in the implementation of Petroleum industry Act to enrich themselves at the expense of the Country and the people.““It’s an undeniable fact that the Premium Motor Spirit, PMS, is still under subsidy regime, and we find it disheartening and worrisome that these unscrupulous Marketers are selling PMS from the depots at prices far above the official rate.““We are giving these Marketers twenty-four (24) hours with effect from midnight of Sunday, 27th February, 2022 to revert to official rate or we shall name and shame them as public enemies aside from other sanctions.“It is also disturbing that even though AGO, and DPK are deregulated, there must be some measures of checks and control over the prices otherwise the entire productive activities will be grounded.““We have it on good authority that it’s one Marketer that determines and fixes prices of these products for other Marketers to adopt leaving all consumers (domestic and industrial) at their mercy.““This unsavory situation is evidently clear from the cries of the airlines Operators, road transport Operators, factories Owners and private homes and offices. The Union cannot continue to watch as some cabals keep on exploiting the people and the nation.““We implore the general public to bear with us in whatever actions we deemed necessary against these exploiters.

““Painfully, we noticed the helplessness of the NNPC in this in view of the implementation of the Act and also noted that these Marketers are taking advantage of the newness of the Nigerian Midstream and Downstream Regulatory Authority to rip off Nigerians.““The nation and the people are bleeding and in the absence of any decisive institutional intervention, NUPENG has decided to once again step up in the defense of the people, the nation and the industry.““We are also by this press release directing all our officials in all our zones to start compiling lists of petrol stations that are in habit of hoarding products during the day and selling at nights at exorbitant rates for possible sanctions. These also include Petroleum Products depots that may want to be hoarding products because of our decision on this matter.”

Vanguard

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FG deploys Lanre Shittu CNG buses as airport shuttle

Published

8 hours ago

December 28, 2024

Trends Admin

FG deploys Lanre Shittu CNG buses as airport shuttle

The Federal Government has commenced the deployment of Lanre Shittu Motors (LSM)-branded Compressed Natural Gas (CNG) buses in the nation’s airports for passengers shuttle.

The first batch of the CNG-powered buses has been launched at the Murtala Muhammed Airport, Lagos, at a ceremony attended by the Minister of Aviation and Aerospace Management, Festus Keyamo, and Managing Director, Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Oluwaseun Kuku.

Speaking during the unveiling at the Lagos airport, the minister said the deployment was in line with the directive of President Bola Tinubu.

He said it was part of Nigeria’s commitment to reducing carbon emissions and meeting global climate targets.

‘’What you see here today is a fleet of CNG buses for FAAN to commence passenger movement at all our airports immediately,” the minister said.

He said the newly acquired CNG-powered LSM buses unveiled at the Lagos airport are eco-friendly with zero emission and designed with accessibility features for persons with disabilities.

The deployment, he added, was in compliance with the President’s goal of reducing reliance on traditional fossil fuels of petrol and diesel and promoting sustainable use of CNG to power vehicles in the country.

The introduction of the CNG to power automobiles is one of the Federal Government’s initiatives to ease the impact of fuel subsidy removal on the masses.

The CNG buses, according to the Managing Director of Lanre Shittu Motors, Taiwo Shittu, come in two specifications: a 31-seater for airport shuttle services and a 54-seater for mass transit city buses.

He said they had been equipped with modern amenities, including air conditioning, viewing screens, and charging stations.

With the introduction of the CNG buses, he said LSM aimed to provide a more sustainable and efficient transportation solution not only to Lagos but other parts of the country.

Auto

LSM MD extols founder’s qualities after latter posthumous industry award

Published

2 days ago

December 27, 2024

Trends Admin

LSM MD extols founder’s qualities after latter posthumous industry award

*He left us a good name, says son

Founder and late Chairman of Lanre Shittu Motors (LSM), Alhaji Olanrewaju Shittu, has been honoured with a Nigerian auto industry posthumous award.

This was announced in Lagos at the 2024 edition of the annual

Nigeria Auto Journalists Association (NAJA) announced this in Lagos at the 2024 recently industry awards.

The prestigious award was received by one of his sons, Mr Taiwo Shittu, who is also the managing director of the auto company.

NAJA said the award was in acknowledgement of the leading role of the LSM founder in the development of the automotive business in Nigeria, describing him as a silent achiever.

Speaking on the honour, Taiwo Shittu, who was also declared the Nigeria’s Auto Personality of the Year, praised his father for painstakingly building the LSM brand and leaving behind a good name to the delight of the children and the entire family members.

He described this as a legacy accounting for the success of the company so far since his father’s demise over a year ago.

He said, “I must thank my late father, Alhaji Razaq Olanrewaju Shittu, for building the brand name. There is nothing like a good name.

“If you don’t leave anything for your children other than a good name, the sky is the limit for them.

“In our own case, he left us money and the good name. We can’t thank him enough for leaving us with a good name.

“You can imagine that everywhere we turn to in the country, once we mention we are Lanre Shittu’s sons, we are ushered in immediately.

“People would say ‘Your father was a good man. He won’t cheat you if you did any business with him. His word was his bond; he never broke his promises’. I have heard this many times. And the only thing we can do is to build on this legacy.”

Taiwo Shittu also noted that the unity existing among the 20 surviving children of the late LSM founder was part of his father’s legacies and something for other family businesses in Nigeria to emulate.

He said, “A lot of businesses collapse after the death of their owners. Once a business founder is dead, the next you hear is that a fight has broken out and while one person is taking the arm, another is claiming the leg, the other is going for the body. And in six months, the whole empire is gone down.

“In our case, we have 20 siblings that are cooperative and believe in my ability to lead the business with my other brothers.

“We had a father who never spoiled us. He taught us sincerity, commitment and accountability.”

He also spoke about the lifestyle of the late father, saying even though he was a car dealer and loved cars, he would only change his main car after every 10 years.

“Yes, he loved cars. He used to have a Rolls Royce. But he no longer had it before he died. What he had was a Mercedes-Benz Maybach. His car garage was not packed full. Even though he was a car dealer, he changed his main car every 10 years.

“He was a very prudent man. At the beginning of his adult life, he had many cars; in the middle, he was prudent. It was at the end that he bought some flashy cars such as Lexus L600, MayBach 650 engine – at that time only he and ex-President Muhammadu Buhari had that car. He bought the car then because the family was preparing for three weddings. By time he died, the MayBach had only run 600 miles.”

The LSM chairman, according to him, started the auto business in the late 1970s as a car dealer with three vehicles.

He said he was so creditworthy that many were willing to release their vehicles to him on credit, adding that this helped the business to grow faster.

He recalled how he would travel to Ogbomosho, Oyo State, and Kaduna to buy cars and returned to Lagos with double the number he could readily paid for.

“Sometimes, he would travel as far as Kaduna to buy 12 cars from PAN, he would be the person driving the last vehicle while others were ahead driving all the way to Lagos,” he stated.

Before delving into automobile assembling, he also recalled that Daewoo and Rolls Royce were the two brands that gave the LSM a real breakthrough.

Business

Nigeria remains oil/gas investment destination with $5bn shell FID – TDF

Published

2 days ago

December 26, 2024

Trends Admin

Nigeria remains oil/gas investment destination with $5bn shell FID – TDF

The Democratic Front (TDF) has announced that Shell’s $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore field further highlights the investment-friendly approach of the Tinubu administration.

This was disclosed in a statement signed by the Chairman, Mallam Danjuma Muhammad, and Secretary, Chief Wale Adedayo.

The group explained that the investment demonstrates how International Oil Companies (IOCs) still see Nigeria as an attractive destination for investments.

“We join President Bola Tinubu in celebrating the Final Investment Decision (FID) by Shell on Bonga North Offshore Field.”

“It is a thing of pride for us that the investment is the outcome of reforms introduced by the President through the Presidential Directives numbers 40, 41, and 42 to fast-track regulatory approvals, reduce operational costs, and promote competitive fiscal incentives in the oil and gas sector.”