Reps clear oil marketers in foul fuel import probe

The House of Representatives says oil marketers accused of importing methanol-blended premium motor spirit (PMS) into the country have done no wrong.

Duke Oil, MRS Oil, Oando Oil and Emadeb consortium — Hyde, AY Maikifi, Britannia-U were accused of importing the off-spec petrol.

The lower legislative chamber absolved the oil companies of wrongdoing following the consideration and approval of the report of the committee on petroleum resources downstream at the committee of the whole on Thursday.

The House said the oil companies “did not commit any offence, therefore not recommended for suspension”.

The Chairman of the Committee on Petroleum Resources, Abdullahi Mahmud Gaya, submitted the report two weeks ago, but the house refused to consider it and suggested that further work on it.

In February, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that petrol with methanol quantities above Nigeria’s specification was discovered in the supply chain.

The Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, had said the suppliers imported the methanol-blended petrol.

The development caused long queues across Nigeria as many filling stations shut down services.

On February 10, the lower legislative chamber asked the NNPC Limited to suspend the companies involved and also mandated its petroleum committees to investigate the matter.

 

After considering the report of the committee on Thursday, the lawmakers approved the seven recommendations therein.

Besides absolving the oil companies of blame, the lawmakers asked the Standards Organisation of Nigeria (SON) to henceforth test for methanol in imported petrol in the country.

Specifically, the House recommended that Minister of Petroleum Resources should expedite action on the completion of the rehabilitation work and ensure upgrading of the major refineries at Warri, Port Harcourt and Kaduna to meet AFRI5 Specification to boost local refining and reduce over-dependence on imported PMS into Nigeria to avert reoccurrence.

That the minister should initiate the adoption of the 2017 PMS Standard (NIS 116:2017) as approved by the SON which include testing for methanol for future importation of the product into the country to mitigate reoccurrence.

That the Federal Government should position the Standards Organisation of Nigeria (SON) to implement its mandate to the latter by subjecting all imported white petroleum and other products to the offshore conformity assessment and resume routine quality control of them and other products imported into the country at the seaports, airports and borders throughout Nigeria as shrined in the Standards Organization of Nigeria enabling Act of 2015.

Based on the Nigerian National Petroleum Company Limited exoneration, the four (4) oil marketers/importers (Duke Oil, MRS Oil and Gas, Oando Oil and Emadeb, Energy/Hyde/AY Maikifi/Britannia-U Consortium) did not commit any offence, therefore not recommended for suspension.

That the Federal Government is to note that the Standards Organization of Nigeria (SON) mandate is also specifically enshrined in item 62 (d) of Part I of the Second Schedule (Exclusive Legislative List), to the 1999 Constitution.

That the Nigerian National Petroleum Cooperation (NNPC) Limited shall maintain local supply and distribution of 90 million litres daily across the country until normalcy is restored.