All Posts in "Fuel Scarcity"

Reps To NNPC: Establish More Depots To Stop Fuel Scarcity In Nigeria

The House of representatives has implored the Nigerian National Petroleum Corporation (NNPC) to establish and equip more depots across the country and strictly regulate the operations of private depot owners.

The call followed the adoption of a motion on the ‘Need to Establish More Petrol Depots in Nigeria moved by Hon. Uju Kingsley yesterday at the plenary session.

He noted that there are insufficient depots to store petroleum products in Nigeria and that an estimated 100 million litres of bad petrol imported in Nigeria have caused fuel scarcity in Nigeria with the consequent effect of adulteration of the product by roadside black market vendors.

He expressed concern that the proliferation of adulterated petrol has caused severe damage to vehicle engines and inflicted more pains on the people and despite seeming efforts to address the fuel scarcity, long queues and shortage of the product still persist at fueling stations across the country.

He added that the Nigerian National Petroleum Corporation (NNPC) accepted that there had been a lapse in its supply chain.

He said:”According to information available on the official website of the NNPC, Nigeria has 5,000 kilometres of pipeline network, twenty-one (21) storage depots and nine (9) LPG depots which are grossly inadequate to effectively serve the 36 States of the country as well as the Federal Capital Territory, hence the recurrent fuel scarcity.

“Many other depots are owned by private individuals who receive fuel from the NNPC and then sell at exorbitant prices, causing unnecessary irregularities in the price of the product across the country”

“If more fuel depots are established, fuel scarcity will be curbed while more employment opportunities will be created as a result, thus improving the country’s economy”

admin by — July 1, 2022 in News 0
Another Fuel Scarcity Looms-Marketers

The Independent Petroleum Marketers Association of Nigeria says another round of fuel scarcity looms in Nigeria.

The embattled marketers echoed that the looming scarcity would be the worst in the history of the country.

The IPMAN chairman in Kano State, Bashir Danmalam, who echoed this at a press conference  in Kano State,implored  the Federal Government to prevail on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to pay its members their outstanding bridging claims amounting to over N500 billion.

According to him,the failure of the NMDPRA to pay the the bridging claims, otherwise known as transportation claims, had forced many of its members out of business as they couldn’t transport the commodity due to high cost of diesel.

He  bemoaned the non-payment of the claims by NMDPRA for over eight months had crippled the businesses of many of their members as they couldn’t transport the commodity even though it was available.

“NMDPRA is responsible for the payment of bridging claims otherwise known as transportation claims.For failure of the NMDPRA to pay the outstanding claims for about nine months, many marketers cannot transport the product because their funds are not being paid. Despite the high price of diesel, they manage to supply the petroleum products nationwide.

“The resurfacing of fuel queues in Abuja is just a tip of the iceberg with regard to the petroleum scarcity.Out of 100 per cent, only five per cent of the marketers can supply the petroleum products because of the failure of NMDPRA to pay them.”

He noted that after the amalgamation of DPR, PEF, and PPRA to NMDPRA, the agency had paid them only two times.

Danmalam, therefore, called on the Federal Government to intervene before the situation degenerated into a serious fuel crisis and spread to other parts of the country.

“As leaders, we have to come out to say the truth because our members are suffering from the failure of the agency to pay the fund. This Petroleum Equalisation Fund is our own money we contribute to each litre. This agency is doing more harm than good to us,” Danmalam said.

He said Nigerians should not blame their members for the fuel scarcity but rather ascribe it to NMDPRA.

admin by — May 10, 2022 in Oil&Gas 0
NNPC Explains Interest In Power Plants,Gets Varsity Students’  Support  To Stop Fuel Scarcity

Nigerian National Petroleum Company Limited (NNPCL), formerly Nigerian National Corporation (NNPC),has justified its interest  in the acquisition of the power plants put up for sale by the Federal Government through the Nigeria Integrated Power Plants (NIPPs),saying it has requisite  expertise and experience to be an active participant in the power sector in Nigeria.
Managing Director of NNPCL, Mallam Mele Kolo Kyari, disclosed this when he led top management team of the Oil & Gas Company on a courtesy visit to the Bureau of Public Enterprises (BPE),a statement said.
He was quoted saying that as an oil company and enabler organisation, NNPCL was determined to boost power generation and supply to Nigerian homes through increased investment .
He said the company  had signed a contract with China Machinery Engineering Company (CME) and General Electric, (GE) to provide 50 Mega Watts of electricity to Maiduguri, Borno State.
He added that his company  was determined to run the organisation efficiently and profitably for the benefit of the shareholders hence it plans to engage in activities that would generate funds; and for the power sector, “NNPCL is a partner of choice”.
He  disclosed  organisation’s   readiness  to partner with  the Bureau of Public Enterprises (BPE) after the audit of some of its assets for the sale and divestment of those  assets  through the BPE.
The planned audit,he said,would be carried out by renowned and reputable audit firms.
Speaking, Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh said that the NNPCL had indicated interest in  the acquisition of some NIPP plants and would be  given a level playing ground to compete with other bidders.
He added that the National Council on Privatisation(NCP) would be notified of the desire by the NNPCL to bid for the NIPP plants.
Meanwhile,the National Association of Nigerian Students NANS has concluded plans to inaugurate an independent task force to assist the Nigeria National Petroleum Company Limited (NNPC) and other relevant agencies checkmate hoarding, price hike and diversion of the product across the country.
National President of NANS, Comrade Sunday Asefon, expressed that  it was unfortunate that adulterated fuel got into the country but it was assuring that the management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) rose up to the challenges by riding the country of the bad product in record time.
He emphasized that concerted efforts must be put in place by all concerned stakeholders in the Petroleum industry to find lasting solution to the problem and restore normalcy.
He  said: “It is also a verifiable fact that the Government through the Nigeria National Petroleum Company, (NNPC Ltd), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),  demonstrated consistency and dedication, by first alerting Nigerians of the off-spec petroleum products as well as working to ensure that all affected companies and individuals responsible for this adulterated fuel are appropriately sanctioned.
“We commend NMDPRA for alerting the country of methanol above national specifications in the imported petrol, and proceeded to declare that efforts were on top gear to remove the contaminated products from circulation to avoid economic damage.
“As Nigerians we recall that the Group Managing Director of the NNPC, Malam Mele Kyari, in subsequent statements and an appearance at the House of Representatives outlined efforts by NNPC to arrest the situation. Among which was NNPC and other relevant agencies embarking on Petrol Distribution Surveillance (PDS), with the sole aim of seeing to  the seamless evacuation of adulterated products from the vessels to depots and trucking from depots to other inland depots as well as retail stations.
“NANS wish to declare its readiness to join the surveillance team to monitor and ensure effective distribution, avert diversion and fight out delibrate price hike by retailers.Information available to Nigerian student’s Apex body also confirmed that there is daily monitoring of trucks out from depots to all 36 states of the nation.
“Besides these, there is never a plan to enforce new pump price on Nigerian as insinuated by some unscrupulous elements. In the coming days, NANS shall inaugurate Independent Task Force to assist the NNPC and other relevant agency to end the hoarding, price hike and diversion across the nation.
“Our team shall be entering all fuel stations to ensure anyone with product that refuses to sell are compelled to sell while those selling at higher prices shall be forced to reduce to sell at normal price. This action has become imperative in order to find amicable solution and support the NNPC to help Nigerians  overcome this suffering”.
Main Admin by — March 8, 2022 in Oil&Gas 0
Group Decries Electricity Supply Hitch, Fuel Scarcity

Coalition for Affordable and Regular Electricity (CARE), has decried the current epileptic power supply and fuel scarcity,saying Nigerians are subjected to monumental suffering on account of the twin issue.
The  group in a statement by its national coordinator,Chinedu Bosah,and secretary,Monsuru Shoyombo,said the hardship is unbearable in view of  the fact that the only alternative for a number of people is the reliance on private expensive electricity generation through generator sets.
 The group said,the ongoing fuel scarcity has made it extremely difficult to generate electricity at homes and businesses and as a consequence, the cost of living has increased.
According to the group,it is unthinkable that Nigeria is stewing in crisis despite a global comparative advantage it  is supposed to have in electricity through  gas, abundant solar, wind and hydro reserves while it is also a major crude oil producer.
It said since November 2013 when the power sector was privatized, the story has been constant darkness, tariff hikes, outrageous estimated (crazy) billings and bailout of irresponsible and inefficient power sector companies.
It added that   between 2005 the process of privatizing began and today, over $15 billion has been expended on the power sector including the senseless bailouts.
It maintained that the current fuel scarcity and poor electricity supply are further evidence of the failure of the Buhari-led regime and the capitalist policies (privatization, deregulation etc).
It said:”These two sectors are overwhelmingly under the control of the private sector profiteers with the self-serving government playing a bell boy role as so-called regulator. Privatisation and deregulation have only put more money in the pockets of a few privileged and greedy individuals leaving the vast majority of the working masses in more misery and crises.
” The irony of it all is that the same Buhari-led capitalist government often claims paucity of funds when it comes to public education, healthcare and basic amenities and as a result these critical sectors are underfunded. Besides, the government keep borrowing trillions of Naira only to squander most of it including public funds generated on white elephant projects and bailout of weak and inefficient private companies and capitalist elite.
“Coalition for Affordable and Regular Electricity (CARE) calls on Nigerian workers and electricity consumers across communities to resist tariff increment and struggle for massive public investment, free prepaid meters for all consumers and uninterrupted power supply. The leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) must end their strategic partnership with the self-serving bourgeois ruling elite and mobilize the working class and the poor masses to reverse the privatization and deregulation policies.
“Fundamentally, the way forward is the renationalization (public ownership) of the power and oil sectors, massive public investments and democratic control and management by the working class and consumers”
Main Admin by — March 7, 2022 in Energy 0