Withdrawal of petrol with methanol cause of scarcity – Newstrends
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Withdrawal of petrol with methanol cause of scarcity

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As long queues surfaced across Lagos and Abuja yesterday over sudden fuel scarcity, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has blamed the situation on the withdrawal of petrol discovered to have contained methanol above Nigeria’s specification.

According  to a statement by the agency yesterday, the affected petrol was isolated and withdrawn from the market, including the loaded trucks in transit.

Methanol is a regular additive in petrol and usually blended in an acceptable quantity.

NMDPRA explained that the source supplier has been identified and appropriate actions would be taken.

The agency said its technical team, in conjunction with the Nigerian National Petroleum Corporation (NNPC) Ltd and other industry stakeholders, would “monitor and ensure that quality petroleum products are adequately supplied and distributed nationwide.”

It revealed that the NNPC Ltd and all oil marketing companies had been directed to sustain sufficient distribution of petrol in all retail outlets nationwide.

The NMDPRA said NNPC had intensified efforts at increasing the supply of petrol into the market “in order to bridge any unforeseen supply gap.”

Meanwhile, the Independent Petroleum Marketers Association of Nigeria, (IPMAN) has warned motorists against panic buying, saying petroleum products will be available from today.

Its Vice President, Abubakar Maigandi, stated this yesterday as a guest on Arise TV news programme, Newsday.  He said: “The government and the NNPC is (sic) on it. “There is no way we can sell those contaminated because it will affect motorists. But…car owners should stop panic-buying. By God’s grace, today or tomorrow, the product will be available nationwide.”

He gave assurance that Nigerian National Petroleum Corporation (NNPC) wasworking seriously to see that they get the correct product so that the marketers wouldcontinue loading.

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“Already, we told all our marketers to stand by the various depots that they are loading. Immediately when we start receiving the uncontaminated products, the products will be available in most of our filling stations nationwide,” he said.

Maigandi did not mention who was to be held responsible for the contaminated petroleum products in circulation. He, however, said “IPMAN buys its product through NNPC and private depots. In every business sometimes, “there must an issue and this has been already understanding (sic) without many damages,” he said.

Also IPMAN National Operations Controller, Mr. Mike Osatuyi,  disclosed that the contaminated product is being mopped-up, a development that has caused disruption in the distribution chain.

‘‘The impact is quickly felt in Lagos because of its huge demand and consumption of petrol. Any disruption in the distribution chain is almost an immediate reaction unlike what obtains in other parts of the country.

“The NNPC is doing its best at this critical time and we believe the effort will yield a positive action soon. I implore Nigerians to be patient and not engage in any form of panic buying,’’ he said.

Other marketers who spoke to Daily Sun in confidence for fear of being sanctioned by the regulator confirmed that there was indeed off-spec petrol in circulation.

The off-spec or contaminated petrol according to the marketers is petrol laden with graded water and already in the tanks of some major oil marketers which included; Ardova, MRS and Total with independent marketers such as NIPCO also involved.

They explained that since NNPC is the sole importer of petrol, they should be held liable and made to explain to Nigerians what happened.

However, a reliable source in one of the agencies told Daily Sun that the contaminated petrol came in with some quantity of methanol and ethanol and that when tested, the result came out as being fit for use but when exposed to oxygen, it starts to react. The source added that the exposure to oxygen builds up sludge in the petrol, thus causing damage to car engines.

‘‘I can confirm to you that we have received reports that this contaminated fuel has caused damage to vehicle engines. That is not in doubt.

She explained that both NNPC and the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) are both aware of this development and are taken steps to ensure that the situation is arrested.

The marketer further told Daily Sun that the volume of the contaminated fuel which made is way into the country is about 200 million litres.

He said the NNPC has given assurance that it would evacuate the contaminated fuel in the tanks of the affected depots while ensuring that they do not suffer any financial loss, they would be reimbursed for the bad product.

‘‘For now, we are not loading out trucks until this issue is addressed in the interest of the consumers. This may take up till next week before it gets resolved. The result of fuel shortage is what has now translated to queues in some filling stations. But the truth is that, not all depots/fuel marketers are affected.

Meanwhile, Some petroleum marketers say fuel scarcity will persist in Lagos and other parts of the country until depots are restocked with adequate and quality products.

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The marketers who spoke to the News Agency of Nigeria (NAN) on the condition of anonymity equally blamed the current scarcity on the supply of a wrong specification of petrol in some parts of the country.

They noted that the directive to withdraw the product from the market even after distribution to many filling stations across Lagos and other areas created a supply shortfall, thereby, leading to panic buying.

“As we speak, the Nigerian National Petroleum Company Ltd is working to ensure that this disruption to the supply chain is addressed as soon as possible.

“However, there is the challenge of logistics and how to compensate those who were supplied with the adulterated products.

“The NNPC is working with marketers on this and once the depots are restocked, tankers will start loading and supply will improve across the country.

“Until we are able to achieve this, queues will remain at the petrol stations because of the panic already created,’’ one of the top marketers told NAN.

An independent petroleum marketer (name withheld) said there had been complaints from some motorists on the fuel quality which made his station to stop selling for now.

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Your pension funds safe, won’t be accessed illegally, FG tells workers

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Your pension funds safe, won’t be accessed illegally, FG tells workers

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, says the Federal Government has no plans of illegally accessing the N20 trillion pension funds for infrastructure development.
He said noone should entertain any fear over the safety of the contributions of workers that make up the pension funds.
Edun had earlier said the spoken on a move to use the pension funds as part of the government’s efforts to bridge Nigeria’s estimated 20 million housing deficit, and provide massive housing and mortgage loans at 12 per cent interest rates, with 25-year repayment plans.
The minister’s comments had elicited serious reactions from notable groups and Nigerians, including the organised labour and a former Vice President, Alhaji Atiku Abubakar, who advised the government to suspend the move.
Atiku said the move was potentially disastrous for retired Nigerians dependent on their pensions.
But in a statement personally issued on Thursday, Edun said the stories making the rounds that the government planned to illegally access the savings and pension contributions of workers were false.
He stated that the pension industry was guided by rules, adding that the government would be strictly guided by extant rules in accessing the pension funds of workers.
The minister stressed that government would not go outside the stipulated limitations on what the funds could be invested in.
The statement read in partu, “It has come to my notice that there are stories making the rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth.
“The pension industry, like most the financial industries, is highly regulated. There are rules. There are limitations about what pension money can be invested in and what it cannot be invested in.
“The Federal Government has no intention whatsoever to go beyond those limitations and go outside those bounds, which are there to safeguard the pensions of workers.
“What was announced to the Federal Executive Council was that there was an ongoing initiative drawing in all the major stakeholders in the long-term saving industry, those that handle funds that are available over a long period to see how, within the regulations and the laws, these funds could be used maximally to drive investment in key growth areas, including infrastructure, housing, and, of course, to find a way to provide Nigerians with affordable mortgages.
“Within this context, there is no attempt, nor is it being considered, to offer unsafe investments for pension funds or even insurance funds or any investment funds.
“No attempt whatsoever to increase the risk. No attempt whatsoever to lower the returns that would otherwise be earned.”

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Updated: We’ll resume Lagos-Dubai flights on October 1, says Emirates

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Updated: We’ll resume Lagos-Dubai flights on October 1, says Emirates

Emirates Airlines on Thursday announced that its flight operations to Nigeria would resume on October 1, 2024.

It said this in a statement, “The service will be operated using a Boeing 777-300ER. EK783 will depart Dubai at 0945hrs, arriving in Lagos at 1520hrs. The return flight EK784 will leave Lagos at 1730hrs and arrives in Dubai at 0510hrs the next day.

“Tickets can be booked now on Emirates.com or via travel agents.”

It quoted Emirates’ Deputy President and Chief Commercial Officer, Adnan Kazim, as saying the Lagos-Dubai service has traditionally been popular in Nigeria.

“We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back onboard,” Kazim said.

Minister of Aviation and Aerospace Development, Festus Keyamo, on Wednesday said the Emirates Airlines had given a definite date to resume flight operations to Nigeria and would make the announcement in a matter of days.

Emirates Airlines suspended flight operations to Nigeria in October 2022 over its inability to repatriate its $85 million revenue trapped in Nigeria.

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Dollar crashes against Naira at official market

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Dollar crashes against Naira at official market

The Naira on Wednesday appreciated at the official market, trading at N1,459.02 to the dollar.

Data from the official trading platform of the FMDQ Exchange, revealed that the Naira gained N61.38.

This represents a 4.04 per cent gain when compared to the previous trading date on Tuesday, when the local currency exchanged at N1,520.40 to a dollar.

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Also, the total daily turnover increased to 289.14 million dollars on Wednesday up from 128.76 million dollars recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,593 and N1,401 against the US dollar.

Dollar crashes against Naira at official market

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