Nigeria’s decision to start the tracking of refined petroleum products movements across the country is expected to solve some few niggling problems arising from the current chaotic fuel distribution system, but it is hardly the most urgent need of the ailing and rotten oil and gas sector at the moment. The Minister of State for Petroleum Resources, Ibe Kachikwu, who announced the new development, said a whopping N17 billion had been approved for the installation of the tracking mechanism.
“We will monitor the trucks till they deliver the products into the storage tanks for the filling (petrol) stations and they are discharged and sold. So, that will produce a 100 percent holistic monitoring of these products,” the minister explained. But is that what a government should spend its time doing when there are so many challenges waiting to be dealt with?
Apart from ensuring that the refined products, which are almost 100 per cent imported these days, do not get diverted to Nigeria’s neighbouring countries, as claimed by officials of the Nigerian National Petroleum Corporation, it will also help to throw new light on the quantity of fuel that is actually consumed in the country on a daily basis. This has been a source of heated controversy between the state oil firm, which is now the sole importer of refined petroleum products, and other stakeholders, and rightly so.
At a time when there were private sector participants in the import business, Nigerians were told the country was consuming between 30 million litres and 40 million litres of petrol per day. But when the NNPC became the sole importer, paying itself subsidies – which it now calls under-recovery – the quantity has been inflated to as high as between 70 million and 80 million litres per day.
More bizarrely, the quantity actually seemed to have reached its peak at a time when there was petrol scarcity all over the country, fuelling suspicion of deliberate inflation of figures because of the higher subsidies that come with higher figures.
While it is good to get the statistics right and ensure that whatever fuel is imported with Nigeria’s hard-earned hard currency is consumed only by Nigerians, it is however worrisome that the process of installation of the mechanism will be administered by the government, using the Petroleum Equalisation Fund, an agency that is not only redundant but part of the anachronism that obfuscates transparency and inflates cost within the oil sector.
According to the Act setting up the fund, its main function is to oversee;
“the reimbursement of petroleum marketing companies for any losses suffered by them arising from the sale of petroleum products at uniform prices throughout Nigeria.”
The question then arises, if garri or bread or beef or cement, for instance, is not sold uniformly across the country, why must petroleum products be sold “at uniform prices throughout Nigeria”? What is so special about petroleum products that they should be singled out for this kind of treatment?
This is one of the reasons why the government should let go of the downstream sector of the oil and gas industry. If market forces are allowed to prevail, most of the problems within the sector would most likely be resolved and it will no longer be the business of the government to invest taxpayers’ money to the tune of N17 billion in the tracking of fuel tankers nation-wide or to even fix prices in the first place. Besides, what happens to the fuel depots and the pipelines that should carry the fuel instead of the tankers? Why can they not be fixed if they are out of order, instead of relying on trucks?
For the umpteenth time, the government should be reminded that it has no business remaining in business; leave business for the businessmen and concentrate on providing a level playing field through the provision of sound infrastructure and rigorous regulatory authority so that businesses can thrive and buoy the economy. This is the only way to boost industrial base, create jobs and widen the tax net.
There is no doubt that the new proposal by the oil minister is an attempt to further entrench the government in an industry that it has been running for close to five decades now without bringing any benefits to Nigerians. This is why the government has found it difficult to sell the moribund, loss-making refineries into which billions of dollars are sunk from time to time on the pretext of carrying out turnaround maintenance.
It is sad that, with less than one year left in the life of this administration, not even one new refinery has come on board to take the pressure off the huge foreign exchange spent on fuel imports in the country. All the initial promises of Kachikwu to sell the refineries have come to naught.
With the exception of the N273.74 million profit recorded in May 2016 and another trading surplus of N16.72 billion in February and March this year, the NNPC has been running at a loss for years. A report by Business Confidential put the amount of losses incurred by the NNPC in the three years to 2017 at a whopping N547 billion. No rational being runs a business in that manner.
Given the track record so far, it is doubtful if anything good can come out of the Nigerian oil industry as long as it continues to be dominated by the corrupt government-owned monopoly. Nigeria can make all the money it requires from the oil industry through tax and royalties, without getting directly enmeshed in a business where there is no transparency and accountability.
We have consistently recommended root and branch reforms of the downstream sector that will target private investors and free government completely from the hydrocarbon distribution business. In a deregulated environment, oil marketing companies can fully track, trace and monitor the distribution of their products and quickly detect illicit activities that negatively impact on their bottom lines. What the sector needs now is a complete overhaul that will position it to deliver maximally to Nigeria as a major oil producing country. It is time to clear the coast for the private sector to come in.
Over 30 vehicles held in traffic with almost 10 commuters were burnt to death in the inferno on Lagos-Ibadan Expressway, opposite Michael Otedola Housing Estate, along Mowe, before Berger this evening.
The vehicles were reportedly burnt to ashes as a result of a fallen petrol tanker which hit a pavement and catches fire along the Otedola bridge, of Lagos Ibadan expressway. Cause of the accident seems to be as a result of Brake Failure.
The Joint Rescue Operation involving FRSC, LASEMA, NPF, RRS, NSCDC, Lagos State Fire Service, LASTMA were on ground to assist in clearing the incident area. As at the time of this report, over 10+ persons have been reported dead, 4 injured
Bodies of the victims of the tanker explosion being evacuated 💔💔💔💔...
An Eyewitness gives details of how the fire accident occurred on the Otedola Bridge
WATCH BELOW
This man above wasn't even worried about his car because it could have been his life! God help us.
LESSON - Please friends, always save yourself first! As long as you have life, everything can be replaced!
PLEA/ADVISE TO NIGERIAN GOVERNMENT
Why should tankers go through the same road with normal commuters? Can't fuel and other PMS be transported through Trains? Rather a separate route for tankers alone?
This is not so in other nations. FRSC and other force don't stop trailers for inspection but cause of bribery they stop smaller ones for seat belts.
Government please make the roads safe for motorist! We are tired of all these!
May the souls of the dead Rest In Peace.
The Peoples Democratic Party, PDP, has said that President Muhammadu Buhari and his APC government want to increase the pump price of petrol in order to fund the 2019 general election.
The main opposition party appealed to the APC-led government not to increase the fuel price which is already N145 per litre.
According to the PDP, the lingering fuel crisis and its attendant black-market costs were only a ploy by the APC to justify their intended hike of petroleum prices.
This was part of the PDP’s statement on Friday, issued by its national publicity secretary, Kola Ologbondiyan.
The statement said, “Any increase in fuel pump price would be an indirect tax on Nigerians to fund APC interests and considering the pains Nigerians have suffered under this inept and unfeeling government, this intended hike will be callous.
“It is now clear to all that this APC- controlled government will never act in the interest of Nigerians. All the actions and policies of APC, in their close to three years in office, have been targeted against Nigerians and there are no signals that they will change.”
“We therefore urge Nigerians to reject this plot to raise the prices of petroleum products even as they gear towards using the next election to end the misrule of the APC,” the party said.
The party added that instead of putting more burden on the people, the APC-led government should come out clear on “sleazes in the oil sector under its watch, particularly the shady oil subsidy payouts and illegal lifting of N1.1 trillion worth of crude using unregistered companies.”
Reno Omokri, former aide to ex-president Goodluck Jonathan says the price of Premium Motor Spirit (PMS), popularly called petrol will soon be increased.
Omokri on Friday in a series of tweets said the government was ashamed to publicly announce the new price to Nigerians
According to him, Buhari’s government will increase the price because they can no longer pay for subsidy which was earlier called a scam under Jonathan’s administration.
He wrote “The Buhari administration is going to increase fuel price sooner than later. Mark my words.
“The only reason for the delay is that they are ashamed to tell Nigerians that they have been paying the same subsidy they claimed was a scam under Jonathan but can no longer afford to pay.”
Recall that the Minister of State for Petroleum Resources, Dr Ibe Kachikwu on Friday denied reports of increment in fuel price to N180.
Ibe Kachikwu, the Minister of State for Petroleum Resources, has given reason why petroleum marketers allegedly responsible for hoarding fuel during the Yuletide season can’t be punished by government.
The Minister said there was no single evidence that marketers were hoarding petroleum products and as such, they could not be punished.
Kachikwu made the disclosure after a Federal Government delegation led by the Chief of Staff to President Muhammadu Buhari, Abba Kyari, and fuel marketers as well the heads of the Department of State Services and the Nigeria Immigration Service, and representatives of other paramilitary services met at the Presidential Villa, Abuja.
Addressing State House Correspondents after the meeting, Kachikwu said the parley was not a fault-finding one but meant to find a lasting solution to the problem of fuel scarcity.
According to the Minister, “This is a major concern that Nigerians should not be made to suffer, that Nigerians do not get through the kind of thing they went through this December.
“We want to find a lasting solution and that is what the committee will come out with in the resolutions tomorrow (Wednesday).
“The thing is even the Nigerians, who have suffered, will want to be sure that we find a lasting solution and find evidential basis upon which to punish people.
“This is a democratic government. I don’t have one (evidence) yet; if you have one, I will like to have it.”
In order to halt the untold hardship presently affecting Nigerians due to the ongoing fuel crisis, the President of the Senate, Dr. Abubakar Bukola Saraki, on Thursday, directed the Senate Committee on Petroleum Resources (Downstream) to cut short its recess and immediately convene a meeting with industry stakeholders.
According to the report by Punch, Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa, revealed this today in Abuja.
Following the directive, the Committee has summoned the Minister of State for Petroleum, Dr. Ibe Kachikwu, Group Managing Director of the Nigerian National Petroleum Corporation, Mr. Maikanti Baru and other relevant stakeholders in the petroleum sector to a crucial meeting on Thursday, January 4, 2018.
He further added that the meeting, which will be held in the Senate Hearing Room 221 and its proceedings aired live on the Nigerian Television Authority, is meant to address the lingering fuel scarcity bedevilling the nation in the last few weeks with a view to putting a complete stop to the unsavoury development.
The Senate, which is presently on Christmas and New Year break is billed to resume Committee work for budget defence on January 9, and commence plenary on January 16.
Tayo Aboyebi, South-West Chairman of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), on Monday confirmed that massive loading of petrol was ongoing at different depots in Lagos.
He assured that Nigerians that the current scarcity of fuel would end in the next two days.
“I am glad to tell you that the product is now available and today, being Christmas holiday, tanker drivers are waiting to collect the product.
“Nigerian National Petroleum Corporation (NNPC) is now making use of Major Marketers Association of Nigeria (MOMAN) tank farms to distribute petrol.
“This is to accelerate the product to different locations. As I am talking to you, our members are taking the product out of depots to filling stations across the country.
“To make it quicker, NNPC is also using Folawiyo depot, Aiteo and NIPCO depots and I can tell you that the rate at which loading is taking place now, the crisis will soon be over,” he told NAN.
Atoyebi denied allegation of diversion of the product by his members, adding that such had not been reported to him.
“To the best of my knowledge no such cases have been reported to the union.
“It is not easy to divert the product because petroleum tankers loaded were being monitored to their destinations,” he said.
He urged Nigerians to desist from panic buying, adding that the product was now available.
“Nigerians should not result to panic buying now; petrol is available in depots unlike few days ago when the product was not available.
“The product will be in all filling stations in few day’s time, so buy only what you will use and stop hiding petrol in your house, it is dangerous,” he said.
There was wild jubilation on Monday at Mani Petrol Station, Mowe, Ogun State as the Department of Petroleum Resources (DPR), sanctioned the owner and instructed him to dispense fuel for free to motorists.
News Agency of Nigeria (NAN), reports that Head of Operations, DPR office in the state, Kasali Akinade, had earlier visited the station to warn the owner to start selling at the approved pump price.
NAN also reports that DPR officials had to return to sanction the owner because he refused to comply with their earlier directive.
Speaking with journalists, Kasali said it had become imperative for him to make a “scapegoat” out of the station, so as to serve as a deterrent to others around the area.
He wondered why people would want to make life difficult for fellow citizens, saying the department has zero tolerance for such act of indiscipline.
“We got a tip-off that they are hoarding and selling at N220 per liter. We came here and instructed him to start selling at the approved pump price and forgave him for what he did.
“But as soon as we left his station, he reverted back to the old price and even stopped selling. We had to turn back and make a scapegoat out of him.
“This will serve as a deterrent to others because we treated him as a gentleman at first, but he decided to sabotage the efforts of the federal government,” he said.
He advised other marketers to quit short-changing the public, saying if they have any grievances, they should channel it to the appropriate quarters rather than taking it out on the masses.
Some customers who spoke with NAN expressed their joy at the DPR’s intervention, saying they needed such acts while also advising proper monitoring on the part of the authorities.
NAN reports that other stations visited that were hitherto not selling were made to start selling just as those who were selling above pump price were made to revert to the normal price of N145 per litre.
Source
NAN
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