Major Marketers Raise Depot Price of Petrol

Fear of petrol scarcity loomed at the weekend as most of the six major oil-marketing companies and NIPCO Plc have exhausted their stock of the product. The shortage has led to an increase in the depot price of petrol. Investigations revealed that some depot owners have capitalized on the tight supply situation to sell at ex-depot price of between N93 and N100, as against the official price of N89 per litre.

However, sources said while the pump price of petrol would still be maintained at N97 per litre in Lagos and its environs, the marketers could capitalize on the increase in depot price to jack up the price in the hinterland where there is less supervision from regulatory agencies’ officials.

The drop in fuel supply, it was learnt, was worsened by the refusal of the Department of Petroleum Resources (DPR) to allow fuel cargo imported by the Nigerian National Petroleum Corporation (NNPC) to discharge its products for the marketers at Apapa Port over unresolved financial issues. Deputy Director and spokesperson of the DPR, Mrs. Belema Osibodu, however, said that the vessel was allowed to discharge after all the relevant documents requested by the agency were presented.

 A spokesperson of the NNPC, Dr. Omar Farouk Ibrahim, said that the vessel was prevented from discharging because it had “a financial lien.”

Sources within the six companies that constitute the Major Oil Marketers Association of Nigeria (MOMAN) and NIPCO Plc, whose depots are located in Apapa, Lagos, said that the seven companies had a two-day stock level which was largely exhausted.

http://www.thisdaylive.com/articles/major-marketers-raise-depot-price-of-petrol-over-shortage/123947/ 

Looming Oil Marketers Strike over Subsidy Disbursement

Nigeria may soon experience yet another fuel crisis as major and independent oil marketers have vowed to suspend their operations in days ahead over the continued delay in payment of their fuel subsidy claims by the Federal Government. In addition, the alleged plans by government to release only N21 billion monthly for subsidy payment has pitched the marketers against the government.

The marketers under the aegis of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), Jetty and Petroleum Tank Farm Owners of Nigeria (JEPTFON) and Major Oil Marketers Association of Nigeria (MOMAN) have resolved to shut down their facilities nation-wide should government fail to commence the payment of their outstanding entitlements.

Nigeria’s daily fuel consumption stood at about 60,000 metric tons (mt) per day, but was reduced to about 35,000 mt, in a move, which according to the Petroleum Minister, Mrs. Diezani Alison-Madueke, was aimed at ensuring transparency and efficiency in the fuel import scheme. However, the marketers argued that with the current daily consumption of about 35,000mt per day, it means that about 1,050,000 mt tons of premium motor spirit is consumed monthly, which translates to about $1,050,000,000 monthly at an average price of $1,000 per metric ton. They noted that the subsidy element, which is about 35 percent, will bring the average amount per month to about $367,500,000 (N60,637,500,000), pointing out that with the new payment method, it will take government almost three months to pay one month claim.

The Presidential Committee on Fuel Subsidy Payment headed by the Managing Director and Chief Executive Officer of Access Bank Plc, Mr. Aigboje Aig-Imoukhede, had in its report noted that  both the Nigerian National Petroleum Corporation (NNPC) and the marketers made total claims of N2,109,386,944,946.92 in 2011, with the NNPC claiming N981,734,423,649.56, while the oil marketing and trading companies submitted claims of N1,127,652,521,297.36.