Revoke licenses of marketers hoarding petrol, PENGASSAN tells Nigerian govt
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Monday urged the Nigerian government to revoke the license of petroleum marketers selling above the official petroleum pump price.
The association in a statement jointly signed by its president, Festus Osifo, and secretary, Lumumba Okugbawa, said there is no sufficient justification for petrol to be sold for such a highly inflated price, thereby subjecting the masses to further difficulties.
The union said data made available from its members showed that there are over 30 days of petrol sufficiency in the country, hence there is no basis for the current scarcity and hardship that Nigerians are being subjected to.
It said it empathises with Nigerians on the hardship currently faced with the scarcity and drastic hike in the price of PMS.
“The national leadership of PENGASSAN has been following up with our members in NNPC Trading Limited who are responsible for assigning the products to marketers and our teaming members from NMDPRA in various depots and terminals across the country that are responsible for issuing cargo clearance, monitoring compliance, routing inspection, metering calibration/maintenance, accurate delivery to trucks, record keeping, etc. on the need to carry out their functions expeditiously,” it said.
“While we understand that the parameters imputed into the old PPPRA and now NMDPRA template have since changed because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of AGO amongst others, there is no sufficient justification for PMS (Petrol) to be selling for such highly inflated price, thereby subjecting the masses to further difficulties.
“Even though we have some good marketers who tend to play by the rules, others who are overbearing have deployed methods of creating artificial scarcities in other to hike the price of the product uncontrollably as the prices of the product now sell between N185 to N400 depending on your location and outlet.
“We hereby call on the management of NMDPRA to compel all marketers and retailers to make the products available at the approved price. They should immediately mobilise all their staff in various locations across the country to monitor compliance and anyone found wanting, should have their license revoked to serve as a deterrent.”
Backstory
Last June, the federal government said that the fixed pump price of petrol was N165 per litre as stipulated in the petroleum product pricing template.
The disclosure came amid the disruption in the supply of petroleum products across the country as filling stations sold at higher prices.
However, since the declaration, marketers have continued to defy the government’s directive by selling at varying prices across parts of the country.
In July, oil marketers gave the federal government conditions that should be met in order to retain the pump price of petrol at N165/litre.
According to them, the cost of the commodity must be sold at the approved ex-depot price at various depots, whether private or government-owned, as this would enable filling stations to dispense the product at the official N165/litre rate.
They also argued that private depots were dispensing the commodity at higher rates than what was approved by the federal government despite the many challenges in the downstream oil sector.
Although the approved ex-depot price of petrol stood at about N148/litre, retailers claimed that private depot owners sold the commodity at above N160/litre, making it unrealistic for them to keep the pump price at N165.
In recent months, pump prices of petrol at filling stations across the country have jumped significantly, amid scarcity and complaints among Nigerians.
On Monday PENGASSAN warned that it will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited.
“A stitch in time saves nine,” it said.
Scarcity
In recent months, Nigerian motorists and household users have had a tough time getting petroleum products at filling stations across the country.
The scarcity has persisted despite the government’s repeated claims it had enough petroleum products in stock.
Last Tuesday, President Muhammadu Buhari approved the constitution of a 14-member steering committee to address the supply and distribution of petroleum products across the country.
On Friday, the NMDPRA attributed the lingering fuel scarcity in the country to a disruption in the product distribution chain caused by the activities of cross-border smugglers.
However, the agency claimed that there is petrol sufficiency of over 1.6 billion litres as of 26 January both on land and marine.
Despite the government’s position, PREMIUM TIMES’ found that Nigerians have continued to suffer from scarcity of petrol across the country.
A PREMIUM TIMES report last Tuesday detailed how Nigerians have continued to lament the hardship caused by the scarcity of petroleum products across the country as businesses and households that depend on generators for power supply groan in darkness.
READ ALSO: Queues resurface at filling stations in Abuja, environs
Experts in the oil industry say that until the issue of pricing is resolved, petrol scarcity will continue to be a recurring feature in Nigeria. The Nigerian government’s insistence on regulating the price of petrol means it continues to spend trillions of naira annually to subsidize the product, money it does not have.
Also, the government-owned NNPC has for the past few years been the sole importer of petrol into Nigeria as private firms withdrew following the subsidy controversy. Nigeria imports virtually all the petrol it consumes due to the lack of functional refineries in the oil-producing state.
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For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Monday urged the Nigerian government to revoke the license of petroleum marketers selling above the official petroleum pump price.
The association in a statement jointly signed by its president, Festus Osifo, and secretary, Lumumba Okugbawa, said there is no sufficient justification for petrol to be sold for such a highly inflated price, thereby subjecting the masses to further difficulties.
The union said data made available from its members showed that there are over 30 days of petrol sufficiency in the country, hence there is no basis for the current scarcity and hardship that Nigerians are being subjected to.
It said it empathises with Nigerians on the hardship currently faced with the scarcity and drastic hike in the price of PMS.
“The national leadership of PENGASSAN has been following up with our members in NNPC Trading Limited who are responsible for assigning the products to marketers and our teaming members from NMDPRA in various depots and terminals across the country that are responsible for issuing cargo clearance, monitoring compliance, routing inspection, metering calibration/maintenance, accurate delivery to trucks, record keeping, etc. on the need to carry out their functions expeditiously,” it said.
“While we understand that the parameters imputed into the old PPPRA and now NMDPRA template have since changed because of some economic vagaries such as exchange rate fluctuation, vessel hiring cost and cost of AGO amongst others, there is no sufficient justification for PMS (Petrol) to be selling for such highly inflated price, thereby subjecting the masses to further difficulties.
“Even though we have some good marketers who tend to play by the rules, others who are overbearing have deployed methods of creating artificial scarcities in other to hike the price of the product uncontrollably as the prices of the product now sell between N185 to N400 depending on your location and outlet.
“We hereby call on the management of NMDPRA to compel all marketers and retailers to make the products available at the approved price. They should immediately mobilise all their staff in various locations across the country to monitor compliance and anyone found wanting, should have their license revoked to serve as a deterrent.”
Backstory
Last June, the federal government said that the fixed pump price of petrol was N165 per litre as stipulated in the petroleum product pricing template.
The disclosure came amid the disruption in the supply of petroleum products across the country as filling stations sold at higher prices.
However, since the declaration, marketers have continued to defy the government’s directive by selling at varying prices across parts of the country.
In July, oil marketers gave the federal government conditions that should be met in order to retain the pump price of petrol at N165/litre.
According to them, the cost of the commodity must be sold at the approved ex-depot price at various depots, whether private or government-owned, as this would enable filling stations to dispense the product at the official N165/litre rate.
They also argued that private depots were dispensing the commodity at higher rates than what was approved by the federal government despite the many challenges in the downstream oil sector.
Although the approved ex-depot price of petrol stood at about N148/litre, retailers claimed that private depot owners sold the commodity at above N160/litre, making it unrealistic for them to keep the pump price at N165.
In recent months, pump prices of petrol at filling stations across the country have jumped significantly, amid scarcity and complaints among Nigerians.
On Monday PENGASSAN warned that it will not hesitate to partner with other stakeholders in ensuring that Nigerians are not further exploited.
“A stitch in time saves nine,” it said.
Scarcity
In recent months, Nigerian motorists and household users have had a tough time getting petroleum products at filling stations across the country.
The scarcity has persisted despite the government’s repeated claims it had enough petroleum products in stock.
Last Tuesday, President Muhammadu Buhari approved the constitution of a 14-member steering committee to address the supply and distribution of petroleum products across the country.
On Friday, the NMDPRA attributed the lingering fuel scarcity in the country to a disruption in the product distribution chain caused by the activities of cross-border smugglers.
However, the agency claimed that there is petrol sufficiency of over 1.6 billion litres as of 26 January both on land and marine.
Despite the government’s position, PREMIUM TIMES’ found that Nigerians have continued to suffer from scarcity of petrol across the country.
A PREMIUM TIMES report last Tuesday detailed how Nigerians have continued to lament the hardship caused by the scarcity of petroleum products across the country as businesses and households that depend on generators for power supply groan in darkness.
READ ALSO: Queues resurface at filling stations in Abuja, environs
Experts in the oil industry say that until the issue of pricing is resolved, petrol scarcity will continue to be a recurring feature in Nigeria. The Nigerian government’s insistence on regulating the price of petrol means it continues to spend trillions of naira annually to subsidize the product, money it does not have.
Also, the government-owned NNPC has for the past few years been the sole importer of petrol into Nigeria as private firms withdrew following the subsidy controversy. Nigeria imports virtually all the petrol it consumes due to the lack of functional refineries in the oil-producing state.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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