The minister of State for Petroleum Resources, Timpre Sylva, has said, the federal government has taken bold actions to stop the ongoing petrol crisis across the country, while reassuring that, with the current steps, all hiccups leading to the current situation is being addressed.
Sylva, who was in Lagos yesterday on the directive of President Muhammdu Buhari, to assess the situation of things with regard to distribution and adherence to price regulation, told the media after his tour of selected petroleum dispensing outlets that an interministerial intervention initiated by the federal government has set out to ensure proper management of petrol distribution across the country.
“The situation is pleasant because I observed availability of products in the state, fuel is everywhere both in Lagos and Abuja. I visited many stations in Ikeja and the mainland and from every indication, there are products everywhere and I want to assure you that the queues will disappear in a matter of days,” he said.
On arbitrary price hike by some marketers, he said, he has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to upscale its regulatory activities to ensure marketers abide by current price regime.
To him, the Nigerian National Petroleum Company Limited (NNPCL) retail outlets are selling at N184 per litre and over 900 outlets operated by the company is selling at that price and that is the official price petrol station is expected to sell, but admitted there are sharp practices still ongoing.
Explaining how the situation degenerated Into the crisis point, Sylva said, government did not see it coming, saying, sabotage played key role in the sector as those who did not mean well for the country took advantage of the upcoming elections to create panic by engaging in market disruptions.
The minister however, pointed out that, other factors like; insecurity, foreign exchange scarcity, lack of currency availability further compounded the situation.
He said, however that the inter-ministerial body inaugurated by the president is not working in synergy to put in check all seeming challenges and block all potholes.
Meanwhile, owners of Petroleum Products Tank Farms in Ijegun-Egba, Satellite Town, Lagos, said, the ongoing massive loading of petrol from depots to different parts of the country will ease scarcity.
The chairman of Tank Farm Owners Association, Mr Debo Olujimi, gave the assurance on Thursday in Lagos while receiving direct petrol allocation from the NNPCL.
Olujimi said, Nigerians should be aware that petrol had become fully available and sold at government regulated ex-depot price of N172 per litre at all Satellite depots.
The Ijegun-Egba depot has about five depots, namely: Emadeb Energy Services, A.A. Rano Energy, Menj Oil, Ocean Pride and Rainoil.
According to him, in February NNPCL allocated over 150 million litres of petrol to satellite depots.
“We are assuring Nigerians that the product will be sold at regulated price and we have commenced massive loading to all states of the federation to ease scarcity.
“We want Nigerians to trust us, and we assure that the product will be distributed effectively as directed by government to ease scarcity and eradicate panic buying.
“In going forward the product will be sold at the regulated pump price in all Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Marketers Association of Nigeria (MOMAN) filling stations across the country.
“We have also directed that all depots within the satellite Ijegun depot that sell above the regulated ex-depot price would be sanctioned,” he said.
Olujimi explained that most of the depots within satellite areas had wider spread across the country, adding that, this made it easier to ease scarcity.
Olujimi, who is also the chief executive officer(CEO) of Emadeb Energy Services, said, the tank farms located in Satellite Town played a pivotal part in petroleum distribution in Nigeria, accounting for 35 per cent of national petroleum product distribution.
Olujimi explained that the transfer of product from mother vessel, which usually cost 21,000 dollars per day had increased to 85,000 dollars per day, which is N850, 000.
He said, the process which often required 10 days posed a serious challenge to depot owners in bringing petrol from offshore line to the depots.
He said, in total, depot owners spent about 1.2 million dollars to bring products from offshore to the depots.
He frowned at NIMASA and NPA who were charging in dollars, which has also increased the cost of shipment.
“Currently, the price has reduced, we encourage NNPCL to get additional vessel; at the moment, the price is between 60, 000 dollars to 65,000 dollars per day.
“Some of us have taken the bull by the horn to encourage ourselves by selling the product at the official price, even if the margin is small,” he added.
He said, the ongoing distribution of petrol at official price was part of the contributions of his members to society.
On smuggling, Olujimi advised all government agencies saddled with the responsibility at the borders to live up to their expection and bring the culprits to book.
In his remarks IPMAN’s National Operations controller, Mr Mike Osatuyi,commended the depot owners for the courage to sell petrol at regulated price to marketers.
He expressed worry over the sustainability of the supply to depot by government, adding that, it would be appreciated if it continued so as to ease scarcity.
He urged the federal government to beef up products to Ijegun Egba satellite depot, adding that, the depots were responsible for about 35 per cent of product distribution in Lagos.
He added that, since government had agreed to supply petrol directly to its members at N172 per litre, the association had also inaugurated a task force that would keep watch over members that might want to sell above the regulated pump price.
The regional coordinator, Southwest of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Ayo Cardoso, said, the authority had been monitoring the system from the vessel to the pump.
Cardoso said: “we have sufficient petrol in the system; l can assure you that in few days the scarcity will ease off.
“As at today, the inland depots have about 580 million litres, the offshore have about 690 million litres of petrol, which means that we have about 1.3 million litres of petrol.”
The general manager, A.A Rano Terminals, Mr Mohammed Koki, said, the company was expecting about 26 million litres of petrol today and it would be distributed within four days.
Similarly, Terminal manager, Menj Oil, Mr Umar Aliyu, also acknowledged receiving 26 million litres of petrol and had commenced 24 hours loading.
