Business

Oil marketers shut filling stations as fuel scarcity hits Lagos

Published

1 year ago

October 16, 2023

Oil marketers shut filling stations as fuel scarcity hits Lagos

On Sunday, there were signs that petrol scarcity had returned to Lagos and its surrounds, as numerous oil marketers closed their outlets against vehicles and other buyers.

Last week, there was a scarcity in Abuja and its environs, which development oil dealers attributed to terrible roads and the high cost of fuel for distribution.

But checks by Vanguard, over the weekend, indicated that many independent and major oil marketers were not open for business, leaving only the NNPC Limited to attend to customers in most parts of Lagos visited.

It was gathered that NNPC Limited has supply because it remains the only importer of the product.

Despite deregulation, other operators have not been able to import petrol because of market uncertainty and lack of foreign exchange, currently standing at more than N1,000/dollar in the informal market.

In a telephone interview with Vanguard, yesterday, the President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Okoronkwo, said actions had been taken to address the situation.

He said: “Stakeholders have been meeting and measures have been taken to enable oil marketers to access foreign exchange at a rate that will not disturb the current price of the product.”

However, checks by Vanguard in Abuja showed that most major marketers which were opened have hiked their pump price from N615 per liter to N625 per litre.

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Similarly, the Public Relations Officer, of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Chinedu Ukadike, had said: “The issue we have is that most of the private depots have gone out of stock because they get supply from NNPCL. Since NNPC is the sole importer, these private depots that independents buy products from also depend on the NNPC for their supplies. This arrangement is also encouraging profiteering.

“We have been finding it very difficult to pick products from NNPC in the past five days and that is why you are seeing the skeletal scarcity. It is not major yet. The important point here is that despite the deregulation, NNPC is still the sole importer of PMS and no other depot is importing.

“Some of the portals owned by NNPC have shut down and are no longer issuing authority to lift to marketers in some of their portals. This significantly shows that there is a gap in the chain of supply. But I was reassured by the MD of NNPC that they are expecting products and they will feed us very soon.

“I want to state that NNPC prices have not changed and they are still selling at N577.6/litre as ex-depot price”, he added

Also, the President of the Natural Oil and Gas Suppliers Association of Nigeria, NOGASA, Mr. Benneth Korie, had warned that the downstream in the country was under serious pressure as stations were shutting down due to harsh operational conditions.

Korie pointed out that “depot owners are so terribly affected by the increasing cost of the crude and exchange rate to the extent that many depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates.

Oil marketers shut filling stations as fuel scarcity hits Lagos

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Railway

Lagos Rail Mass Transit part of FG free train ride – NRC

Published

16 hours ago

December 21, 2024

Trends Admin

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

Published

17 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

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

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

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).

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.