By Hector Igbikiowubo

LAGOS — THE furore generated by the 3rd quarter allocations has refused to abate with the Petroleum Products Pricing and Regulatory Agency, PPPRA and Capital Oil and Gas Industries Limited trading allegations of non-performance and impropriety.

Following release of the 3rd quarter petroleum products importation allocation to marketers and importers who registered to participate in the Petroleum Support Fund under the auspices of the PPPRA, marketers have alleged the Agency gave imports allocation to portfolio marketers, while saddling them with a pittance.

However, the PPPRA has defended its position, stating that it followed due process in the award of importation volumes.

In a statement, weekend, the Agency explained marketers’ performance, adding that available data showed that most marketers import less than 50 per cent of the total quarterly quantity allocated to them.
“Capital Oil & Gas in particular was allocated 250,000 MT in 2008 but was only able to import 42,324.84 MT (about 17 per cent). Also in 2009, 30,000 MT was allocated to the company, but the expected supply was not delivered by the company.

“As a matter of fact, every marketer signs a performance document with the Agency quarterly, with a proviso to be excluded in case of non-performance. Non-performance, as in the case of Capital Oil & Gas, will ordinarily have led to exclusion from subsequent allocation to import products, but in its desire to encourage the company, PPPRA allocated 15,000MT to Capital Oil & Gas in the current allocation,” the statement read in part.

PPPRA denies allegation
Speaking with Vanguard, Mr. Abiodun Ibikunle, Executive Secretary of the Agency said it was not true that petroleum products import allocation was given to portfolio marketers, noting that the engagement of traders to supply products into the system is not a strange practice as the bulk of supplies by the NNPC and other major marketers are carried out by these traders.

Capital Oil reacts
However, in a swift reaction, Capital Oil queried what it described as the current practice of allocation of petroleum products import volumes which is done in secret.

“How come allocations are done secretly in an era of so-called transparency? Why can’t the list be published especially Q3 allocation,” the company queried.

Capital Oil also noted that since its performance Index had been published, the Agency should be bold enough to publish the performance indices of allotees who benefitted from Q2 and Q3 allocations.

“Can PPPRA reply to questions raised by The Guardian Newspaper Editorial published on page 14 of Wednesday July 28, 2010?” it queried.