2-IN-1 STORY: FG To Marketers: Violate Petrol Pump Price, Face Sanctions

The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday warned petrol marketers not to sell the Premium Motor Spirit above the new pump prices. The agency threatened to impose sanctions on errant marketers, which may include withdrawal of licenses and all the benefits of participation in Petroleum Support Fund Scheme.

The Nation report continues:

The Assistant General Manager and Head of Operations of PPPRA, Mr. Victor Shidok, who led the delegation from the agency to enforce and monitor compliance with the new prices in the Federal Capiatl Territory (FCT), Abuja, made these known yesterday.

The Federal Government had earlier announced that from January 1, 2016, all retail stations of the Nigerian National Petroleum Corporation (NNPC) will start selling petrol at ₦86 per litre while others will sell at ₦86.50k against the previous official price of ₦87 per litre.

Speaking with reporters during the exercise, Shidok warned that government would not tolerate any deviation from the new directive.

He said the monitoring exercise, which is simultaneously going on across the country, was conceived in conjunction with the Department of Petroleum Resources (DPR) to ensure that Nigerians are not shortchanged.

Shidok, who led a team of officials from the PPPRA, noted that there was 100 per cent compliance in Abuja, although the team was yet to reach the outskirts where he feared there might be challenges with regard to total compliance.

He said: “This whole exercise is to ensure that the marketers comply with the new pump price. You know usually when we have a change in pump price we go round to monitor compliance.

“We have been to 10 filling stations and we are still going round to make sure that we cover as much as possible.

“Good enough, in ‎all the stations we have visited, both majors and NNPC mega stations, there has been 100 per cent compliance.

“But we shall go up to the outskirts because that is where our concern is. The challenge may likely be on the outskirts.

“All those we have visited say they have received directive from their head offices. We are in touch with the leaderships of oil marketers in the country.

“This is a nationwide exercise. All our staff are in the field across the country and we are doing this at depot level in conjunction with the Department of Petroleum Resources (DPR). They are also out to do a similar exercise because whenever we have a change in the downstream, all the regulatory agencies come out to ensure there is total compliance.

“The law spelt out penalty where you have deviants to whatever directive is issued. Any deviant may lose the benefits of participating in Petroleum Support Fund Scheme, because we may withdraw such people from participating.

“And since we are working in conjunction with DPR, your licence may be withdrawn, apart from other measures that we are likely going to take to ensure that Nigerians are not shortchanged.”

Meanwhile, the PPPRA has approved importation of three million metric tonnes of petrol in the first quarter of the year.

The NNPC was granted 78 per cent of the total volume for the period while the balance of 22 per cent will be supplied by other oil marketing companies.

According to Farouk, a couple of elements that were affected by the price review include traders’ margin, which was revised downwards from ₦1.47 per litre to zero; lightering expenses (₦4.07/litre to ₦2.00/litre) charges by the Nigerian Ports Authority (₦0.77/litre to ₦0.36/litre); jetty throughput charges, (₦0.80/litre to ₦0.40/litre); storage charge (N3.00/litre to ₦1.50/litre); bridging fund (₦5.85/litre to ₦4.00/litre) and ex-depot price (₦77.66/litre to ₦77.00/litre).

Other elements, such as retailers’ margin, were, however, reviewed upwards from ₦4.60/litre to ₦5.00/litre; transporters from ₦2.99/litre to ₦3.05/litre; dealers’ margin from ₦1.75/litre to ₦1.95/litre.”

Accordingly, the ex-depot price of PMS shall be ₦77.00k per litre while the pump price shall be ₦86.50k per litre – in line with the prevailing market trend.

Partial Compliance As New Fuel Price Regime Takes Off

The Nation reports that there is yet to be substantial compliance by fuel marketers in most parts of the country with the directive to dispense fuel at ₦86 and ₦N86.50 per litre, investigation showed yesterday.

The exception is the Federal Capital Territory (FCT) where most marketers have adjusted their metres to comply with the new pump price of ₦86.00 per litre for premium motor spirit (PMS) at Nigerian National Petroleum Corporation (NNPC) filling stations and ₦86.50 at other outlets.

NIPCO petrol stations at Kubwa, Abuja were selling at ₦86.50 while the NNPC stations that were opened to customers all complied with the new price of ₦86.00 per litre.

The Total petrol station on Arab Road, Kubwa however sold fuel for the old price of ₦87 per litre.

Asked why the station was yet to comply with the new price, the attendant said: “We are waiting for the Department of Petroleum Resource (DPR) to come and adjust the meters.”

The Nation observed that although some stations were under lock and key, the product was not scarce, as there were no queues.

Retail outlets of major marketers, including Mobil, Conoil and Total as well as NNPC stations visited by The Nation in Lagos, complied while most of the stations owned by independent marketers sold at ₦87 per litre of PMS.

The Nation’s investigation showed that NNPC retail station at Ogunnusi Road in Omole, Mobil in Agidingbi, among other in Ikeja area of Lagos State sold at ₦86 and ₦86.50 per litre while Conoil station at Oba Adejobi Street, opposite LASUTH also sold at ₦86.50 per litre.

Most of the independent filling stations sold at ₦87 and above per litre. The station managers said they still had old stock and if they should sell at the new price, they would be selling at a loss as their margins were insignificant.

They vowed that subsequent supplies they would get would be sold at the new price.

The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Okoronkwo, said members of his association were still selling at old price because they had old stock, adding that they would revert to the new price soon.

He said: “They are selling their old stock. Market forces will compel everybody to comply. People should see the policy as a policy that will unlock the sector.

“I am sure they will change to new price once they finish the old stock and work with the new regime of President Muhammadu Buhari. I think they will begin to think out of the box to move the sector forward.”

The Department of Petroleum Resources (DPR) warned that sanction awaits defaulters.

The DPR spokesperson and Assistant Director, Public Affairs, Mrs. Dorothy Bassey, said the government had ordered total compliance and any deviant station would be appropriately punished.

She said: “We have instituted effective monitoring team in place that will go out to monitor the level of compliance with the new pump price. Non-compliant stations will be appropriately sanctioned.”

Most of the fuel stations in Ejigbo, Mushin,Ketu and Ojota  in Lagos were closed.

Residents and commercial drivers said they had to resort to black market fuel sellers to buy fuel for their business at ₦150 per litre.

A commercial tricycle operator plying Jakande Estate gate, Oke-Afa and and Iyana Isolo, who gave his name as Suleiman Ariyo, did not understand why the filling stations did not open for business.

Most of the petrol stations in Ibadan, the Oyo State capital, which operated yesterday, continued to sell at ₦120 per litre.

However,the Nigerian National Petroleum Corporation (NNPC) mega station on Ojoo/Iwo Expressway, sold the product at the official price of ₦86 while a notable independent marketer, BOVAS, also sold at the official price of ₦86.50k to motorists.

There were no queues as motorists bought the product with ease.

Transport fares have already gone up in the state.

For instance, Ojoo to Iwo Road, which was ₦50, is now ₦100. When asked about the increment, a driver who simply identified himself as ‎Morufu, said that it had to do with the high cost of fuel.

He said: “I bought mine before the price crashed. I filled my tank and you cannot prevent me from making profit during this festive period.”

Fuel marketers in Benin, Warri, Asaba, Kano, Uyo, Osogbo, Ilorin, Akure and Jos were also yet to comply with the new price regime last night.

In Edo State, most fuel stations monitored sold at ₦140 while the NNPC mega station on Sapele Road sold fuel at the approved pump price of ₦86.

Total Filling station along Akpakpava sold fuel for ₦86.50k.

Many of the station managers declined comments when they were asked why they were selling above pump price.

 Long queues persisted in most filling stations in Kano as supply of fuel was low. Prices ranged between ₦110 and ₦115 per litre

A task force set up by the Kano State Government to ensure smooth sale of fuel directed filling stations not to sell more than ₦5,000 worth of fuel to anyone.

 The committee has also embarked on night monitoring of the sale of the product.

The manager of a filling station, who did not want his name in print, said: “As we speak, most filling stations in Kano do not have fuel in stock. How do you expect us to comply with the directive to sell fuel at ₦86.50 kobo per litre?”

The situation was not different in Port Harcourt, Osogbo, Akure, Jos, Uyo, Asaba and Ilorin where fuel sold well above ₦120 per litre where available.

 A commercial driver in Port Harcourt said: “I hoped when I was leaving home this morning (yesterday) to buy fuel at ₦86.50k, but I have visited several stations at Mgbuoba and Aba Road axis with all of them selling at ₦150 and ₦140 respectively.

Many motorists in Ilorin travel as far as  Osun, Oyo and other neighbouring states to buy fuel in view of its scarcity in the Kwara State capital.

The state chair of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, said his members were yet to switch over to the new price regime of ₦86.50k.

Okanlawon added that where available, members were still buying petrol at the old price.

“We will start buying the product at the new official rate before motorists in Ilorin will start enjoy the price regime from IPMAN members,” he said.

The three Nigerian National Petroleum Corporation (NNPC) mega stations in the metropolis were also put under lock and key.

There was partial implementation of the new fuel price in Jos, the Plateau State capital, with the NNPC mega station selling at N86 while other independent marketers still sold at the old price of ₦87 per litre.

When contacted, Mr. Douglas Ceaser, Comptroller of Jos DPR, said, “We are not aware of any new price.”

Nnamdi Okoroigwe, a driver in Asaba, urged the Federal Government to ensure implementation of the new pump price, adding that many filling stations owners had resorted to hoarding fuel.

A source who spoke on behalf of independent petroleum marketers but pleaded anonymity argued that they (independent marketers) had not exhausted their old stock which they bought at exorbitant rates.

He said selling at government-approved pump price would have an adverse effect on their profits.
But the Department of Petroleum Resources (DPR) has already swung into action by sealing off a sales outlet owned by an independent petroleum marketer within Asaba metropolis.