DPR threatens to shut stations
By Hector Igbikiowubo, Olasunkanmi Akoni & Monsur Olowopejo
LAGOS — THE Management of Capital Oil, an operator in the downstream oil and gas sub-sector has accused major marketers of petroleum products of masterminding the artificial fuel scarcity currently experienced across the country.
In a related development, the Department of Petroleum Resources, DPR, says it will seal petrol stations hoarding fuel in anticipation of the deregulation of the downstream sector of the oil industry.
However, normalcy returned to Lagos State yesterday following two days of fuel scarcity that pervaded the metropolis as oil marketers resume distribution of petroleum products.
Mr. Ifeanyi Patrick Ubah, Managing Director of Capital Oil accused the major marketers of being behind the recent fuel scarcity while speaking in Lagos yesterday. He added that the scheme was devised by the major marketers to blackmail the NNPC and its subsidiary, the PPMC, to discredit independent marketers and increase patronage to them.
Stranded commuters as a result of artificial fuel scarcity in Lagos.
“There is fuel in my depot but because of the negative publicity orchestrated by major marketers of petroleum products, people have engaged in panic buying and the filling stations belonging to these majors are hoarding fuel. Go to all their stations and you will find that they are dispensing with only one or two pumps, creating long queues and the impression is that there is scarcity,” he said.
Ubah said the major marketers are a cartel that have fed fat on the largesse and patronage of the NNPC in the last 20 years — “benefiting from 30 days credit facility granted by the corporation and easy access to bank loans”.
Ubah decried major marketers’ failure to invest in development of downstream infrastructure in the last 20 years despite the patronage they have enjoyed from the NNPC
“Why haven’t they invested as much as we have in the last 20 years? They claim they own filling stations, but if you do an audit today, you will discover that they don’t own up to 20 per cent of these stations. In the last 20 years, why haven’t they jointly invested in the construction of a jetty, why haven’t they jointly put up a refinery,” he queried.
He said even though it was not his brief to speak on behalf of the NNPC, the corporation had carried out a due diligence of petroleum products facilities in the country and decided to engage those they could for the purposes of facilitating uninterrupted supply and distribution.
“NNPC has not paid us a kobo since we started this relationship with them. Ours is a business where you pay before we render services but because we understand the implications of having a hiccup in the supply chain, we accepted to partner the NNPC and they owe us money.
Even the major marketers pay to use our jetty to berth their ships. It is not true that we have sublet our facility to the NNPC; rather, we charge them for through-put of the product they dispense through our depot.”
Car owners waiting to buy petrol at the Conoil and Total Filling Stations opposite the NNPC Towers as the acute fuel shortages continue to bite residents of the Federal Capital Territory, Abuja. Photo by Abayomi
He said in the last two and half years, Capital Oil has constructed the largest private jetty capable of berthing 4 mother vessels of 20,000 metric tons each and depot facility with capacity to hold 174.5 metric tons or 190 million litres of petroleum products, adding that this is second only to facilities of the NNPC.
Normalcy returns in Lagos
Vanguard’s reporters who went round to monitor the situation observed that long queues have disappeared at the filling stations.
At Ikeja, Akowonjo, Oworosonki, Egbeda, Iyana-Ipaja, Ikorodu Road , Surulere, Oshodi, Agege among other areas, all the filling stations were seen dispensing fuel to members of the public.
DPR to seal stations hoarding fuel
Mr. Gbenga Koku, a Controller in the Department of Petroleum Resources, DPR, told the News Agency of Nigeria, NAN yesterday that government had not deregulated the sector nor increased fuel prices.
He said that the department had directed its officials to monitor fuel stations nationwide and deal decisively with offenders.
“Members of the enforcement team have been sent out to monitor the situation and deal accordingly with anybody found guilty.
“DPR has observed that some filling stations, especially in Lagos, have shut their entrances to motorists in anticipation that prices will increase.
“But now that the government has not implemented its earlier plans, it is expected that the filling stations should open their entrances to motorists,” he said.
Mr. Felix Wono, Area Manager of Mosinmi Depot, said that lifting of petroleum products at the depot was still normal.
Wono said that over four million litres of petroleum products were discharged from the depot to many states on Saturday, October 31, 2009.
He said that many dealers were stockpiling petroleum products in anticipation of the deregulation on November 1, 2009.
“We plan to distribute over five million litres of petroleum products to the various states across the country today.
“There is normal and regular distribution of petroleum products from Mosinmi depot and there should be nothing to fear,’’ Wono said.
Mr. Ralph Egwu, Spokesman for Pipeline Products and Marketing Company, PPMC, also said that the price of petrol remained N65 per litre until a new directive from the government.
Egwu said that some marketers were causing confusion by peddling rumours and exploiting motorists.
“We still have petroleum products that will last for more than 40 days. Marketers are just trying to capitalise on the anticipated deregulation that has not been resolved by government,’’ he said.
AC accuses FG
Meantime, the Action Congress, AC, has accused the Federal Government of inflicting pain on Nigerians in the name of deregulation, saying the fuel scarcity that has resurfaced in some parts of the country is a fallout of the planned deregulation of the downstream oil sector.
In a statement issued yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, the party said despite assurances from some government officials, who have been quick to describe the scarcity as artificial, it is possible that the scarcity is being slowly but deliberately orchestrated to force Nigerians to swallow the bitter pill of deregulation.
“The calculation seems to be to first ensure that there is scarcity of petroleum products, subject Nigerians to untold hardships and risks while they search for the products and then quietly raise fuel prices — which is what all the noise about deregulation is meant to achieve,’’ it said.
AC said despite the outcry of concerned individuals and groups, especially the organised labour, the government has insisted on proceeding with the ill-thought-out deregulation, especially now that the policy is out of sync with the economic realities on the ground.
The party said the government’s nonchalance is perhaps because its mandate to govern the nation was not derived from the people.
“If this government had felt that it would require the people’s votes, it would have thought more deeply before inflicting more pain on citizens that are already left battered by economic woes. After all, governments have been voted out of office elsewhere over less-critical issues.
“But since votes rarely count in these climes, the government believe it is alright to treat the people as mere subjects and disregard their opinions in decision making,’’ it said.
AC said it was particularly unfortunate that the fuel queues, especially in Abuja and Lagos, have come at a time that Nigeria is hosting the world, with the Under-17 World Cup in full swing.
Empty fuel station due to fuel scarcity
“It is a shock as to why the government has decided to embarrass the country by timing its deregulation plan to coincide with the World Cup. The government can deny all it likes that the deregulation is not about to take off now, but a government official announced that it will take off November 1, causing the current scarcity.
“If unscrupulous marketers now capitalise on the announcement to engage in hoarding of the products, with the satanic aim of maximising profits, the blame should be laid squarely on the shoulders of an unperceptive government’’ the party said.
Let take a look at the concept of Entropy as applied to the Nigerian state. To understand this concept consider for example, if you broke a picture into 5 pieces to form a jig-saw puzzle, you then put all the pieces into a box and shake it very well; chances are pretty high that you would be piece them back together to form the original picture. If you do the same this time with 10 pieces, chances are, you should still be able to put them back together again, only this time it is more difficult. With 100 pieces it is more difficult, 1000 pieces it is much more difficult and as the number of pieces increases it would becomes nearly impossible to put them back to form the original picture again. Such is the concept of entropy in regards to chaos and reversibility of a state. Western or developed nations understand this concept very well which is why they do everything possible in their power to prevent the collapse of their society.
It is time for us as a nation to wake up from our pipe dream and begin to face the reality that it is very unlikely, if not near impossible that our country would ever revert to the way things were in 70 and 80s. The way forward for us as a nation is to chart the course for the re-birth of a completely new nation. A nation where thing would work, a nation where there would be justice, a nation where there would be accountability, a nation which would uphold the right of each and every citizen, a nation where the rule of law would be sacred. In charting the course of a new nation reconcile our differences. We must ask ourselves how and why things went wrong. Nigerians are easily the most educated Negroes in World. It is a fact that as far back as the early part of the last century, while racial segregation was still the order of the day in the USA, and other parts of the World, Nigeria was already producing doctors, lawyers and engineers. How then did it happen that our country became hijacked was by spineless, visionless, un-educated money hungry kleptomaniac leaders? Is it a wonder that things became the way they are today? We must begin to chart the course of a new order in our country. Let us come to terms with our mistakes, wipe our slate clean and begin to build a radically different Nigeria, a brand new federal republic. It takes courage and sincerity; it takes men of valor, vision and foresight.
I own a filling station in the North. Currently we are buying wholesale at N80 per liter. How can we sell it at N65? Price control has never worked in any country in the world and it will not work in Nigeria. Sure in Saudi Arabia oil is subsidized but Saudi is a much richer country (albeit smaller) than Nigeria and they produce ten times as much oil a day as we do. The market needs to be deregulated and let the market decide the price. I might sound harsh but this price control is so crippling to the whole industry and you can see that clearly by the 100’s of idle petrol stations in the North.
In the current situation a business person in this industry can only make it if well connected. It should be that the station that provides convenience, good service and above all a clean product that has not been tampered with and is dispensed accurately is the station that makes it and succeeds. My station never closes and we monitor our own pumps to make sure that if the meter says 1 liter that we have accurately dispensed that exact amount. We do not mix our products with water or other liquids and we do not cheat the public – in Nigeria, this is a recipe for failure.
I beg to disagree ‘cos it is un-African to abuse ones leaders. Please lets keep praying for these set of people. President Umar Yara Adua Insha Allah, is doing a great work and needs our support.
I believe that what Nigeria needs is a guy like Jerry Rawlings of Ghana to come and clean Nigeria of crooks that call themselves leaders. Anyway I foresee such an event occurring in future since we always have the same people coming in to Government anytime there is a Civilian Government. I do hope they see my comment,mark my word you shall have what you wish for A JERRY RAWLINGS TO CLEAN HOUSE. As the politicians have not learn’t a thing.
I believe that what Nigeria needs is a guy like Jerry Rawlings of Ghana to come and clean Nigeria of crooks that call themselves leaders. Anyway I foresee such an event occurring in future since we always have the same people coming in to Government anytime there is a Civilian Government. I do hope the see my comment,mark my word you shall have what you wish for A JERRY RAWLINGS TO CLEAN HOUSE. As the politicians have not learn’t a thing.
Capital Oil, an operator in the downstream oil ….go and pay the billions you borrowed as unperforming debts andloans….partly your toxic debt killed many people and made many bankers lose their jobs and security…..
after paying offthose loan then you cvan talk in the general public…you are the biggest cause of sarcity …
When we say there are no jobs in nigeria one will wonder if that is true. all those filling stations need supervisory agents from govt. provide job and the level of cheaters will reduce.
Shame on those who hoards gas.
NNPC, DPR and the Federal government should stop this useless blame game. The federal government should be held responsible for this chaos! It s this govt that should be blamed for not knowing the right time to introduce a very sensitive policy like deregulation.
Whoever participated in formulating this policy at this very time are Nigerians’ enemies. How can a good government that is alive to the turmoil in world economies decide to implement deregulation policy at this trying period. All the countries with serious government having milk of kindness are busy introducing incentives for their citizens that would cushion the effects of economic hardship but it is the opposite that we see our government in Nigeria doing. What a bunch of luciferous and satanic, wicked people calling themselves leaders.
It is high time Nigerians started picking up stones to chase these wicked leaders away. Nigerians are already down with no help coming in any form from this government and yet they are looking for a way to hard to he current hardship.
They are talking about removal of subsidy because the subsidy is going to wrong pockets. Why can’t they wage war on the fat cats that are benefiting from it instead of punishing Nigerians for the failure of government. A government that is throwing up its hands in the air in total surrenderness to criminals is not worth to be called a government but bunch of weaklings parading thmselves as area boys.
The federal government with all the state weapons in their hands ought to have made life miserable for those illegally benefiting from subsidy diversion. The govt ought to have beamed their searchlight on those people in NNPC and unravel their compromise and collusion.
The deregulation policy MUST be suspended and implemented when the economies of the world and that of Nigeria improve. It could only be implemented when government has fixed ALL the refineries and built more.
For the Greed of those that Rule the Country
Nigeria is about the sixth crude oil producing and exporting country in the world. The country cannot have fuel to use at home. This is for the reason, all along, of the corrupt PDP leaders and its Governments that put themselves before the people of Nigeria and her economy. It is the money they will take as individuals that matters more to them than the country.
With all the cash they are sharing and wasting here and there; how long does it take to build a new refinery? How long and how much does it cost to repair or replace the parts of the existing refineries? The PDP leaders and its Government are lost of senses but only where there are elections to be rigged and money to be shared.
It is only about one year to go. Nigerians should maintain patient. As fund is not necessarily the country’s problem, our forthcoming progressive Federal Government will carry out the necessary priority issues within the first year of our office. We shall hence refine crude oil at home for all the petroleum products and the by-products to repair our roads we need in the country.
Shame to the PDP the election rigger and its illegitimate Governments since May 1999 to date!