FG to spend N251bn on repair of three refineries

The Federal Government plans to spend N251.2bn on the repairs of three refineries. The Minister of Petroleum, Mrs. Diezani Alison-Madueke made the disclosure when she appeared before the Senate Committee on Petroleum (Downstream). The minister was at the Senate with the Group Managing Director of the NNPC, Andrew Yakubu, and the Managing Director of Pipeline and Products Marketing Company, Mr. Haruna Momoh. They were summoned to explain the continued scarcity of Petroleum Motor Spirit and the increase in the price of the product by marketers.

Alison-Madueke said the government would be spending N251.2b on the Turn Around Maintenance of the three refineries in the country, adding that there were some adjustments in the timelines for executing the TAM. She noted that although there were plans to build new refineries, existing ones would still be maintained.

Fuel scarcity hits Lagos

The fuel scarcity that rocked Abuja and some states across the country in the past few weeks seems to have hit Lagos. In many  fuel stations in Lagos State, long queues of vehicles were seen reportedly over fear that petrol would not be available in the next few days. The imbroglio between  marketers and the Federal Government over non-payment of petroleum subsidy to the former had sparked a strike that paralyzed  Abuja.

The marketers gave the government two weeks to resolve the verification claims on those that collected money without supplying the product. They threatened to embark on a full scale strike if at the end the Federal Government fails to resolve the issue and pay them their outstanding.

Subsidy Scam: More marketers to be arraigned

As the Lagos State High Court resumes from its annual vacation, the Economic and Financial Crimes Commission (EFCC) will commence the arraignment of more directors of oil marketing and trading companies over the subsidy scam.

The courts had on July 16, 2012 gone on recess, necessitating the suspension of arraignment of more directors and their companies, irrespective of the ones earlier arraigned. An EFCC source said that the commission was putting the finishing touches to their case files for possible arraignment.

The EFCC had arraigned some directors and oil marketing companies before Justices Habeeb Abiru and Adeniyi Onigbanjo of the Ikeja High Court charging them with conspiracy, obtaining money under false pretence, forgery and use of false documents. Those arraigned before Justice Abiru on four to nine-count charges were Abdulahi Alao, Adaoha Ugo-Ngadi, Fakuade Babafemi Ebenezer, Ezekiel Olaleye Ejidele and Ontario Oil and Gas Nigeria Limited. They were all however released on bail after meeting their bail conditions.

Also arraigned before Justice Onigbanjo in separate cases and were later released after meeting their bail conditions are Mahmud Tukur, son of Peoples Democratic Party (PDP) National Chairman, Alhaji Bamanga Tukur; Ochonogor Alex; Abdullahi Alao, son of a prominent businessman, Alhaji Abdulazeez Arikesola-Alao; and Eterna Oil and Gas Plc in the first case. Nasaman Oil Services; Mamman Nasir Ali, son of former PDP National Chairman, Dr. Ahmadu Ali; and Christian Taylor were also arraigned in the second case. Other marketers that were arraigned included Oluwaseun Ogunbambo, Habila Theck and Fargo Energy Limited.

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/ 

Subsidy Fraud Fallout: PPRA Moves to Streamline Fuel Imports

The Petroleum Products Pricing Regulatory Agency (PPPRA) has commenced the process of pre-qualification and registration of all existing and intending oil-trading companies that supply petroleum products to oil-marketing companies in Nigeria. This latest development is part of the renewed efforts of the agency to sanitize the subsidy scheme and ensure that only credible companies participate in the scheme in view of the abuse of the system that has led to the indictment of 25 oil-marketing firms for the abuse of the Petroleum Support Fund (PSF) scheme by the Aigboje Aig-Imoukhuede presidential committee.

Under the current bid by the PPPRA to sanitize the system, pre-qualified and registered companies would be under obligation to ensure that only reputable foreign oil traders with record of accomplishment in the fuel supply business are allowed to participate in the PSF scheme. 

PPPRA gave the oil-trading companies till September 7 to submit certain relevant documents for pre-qualification and registration. The documents must contain the name of the company; certificate of incorporation; share capital; country of origin and registration; names and profile of directors; Nigerian subsidiary, if any; and share capital. The companies must also provide information relating to their trading experience within the West African coast sub-region; details of indictment in the past, if any; main and address of trading offices; email address and annual turnover.