The Nigerian National Petroleum Company Limited (NNPC Ltd.) has resolved to quickly end the incessant queues at various filling stations in the Federal Capital Territory (FCT), Abuja.
By this resolution, the company in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stepped up the supply of Premium Motor Spirit (PMS) to the FCT from 70 to 140 trucks to combat the lingering fuel queues.
During an inspection tour of filling stations in Abuja, NNPC’s Group Executive Director, Downstream, Mr Yemi Adetunji, explained that there were enough petrol in the nation’s strategic reserve to last 32 days.
“We have 1.9 billion litres of PMS that can last for 32 day. NNPC is making every effort to ensure energy security for the country.
“We have sorted out Lagos. We are working with all relevant stakeholders to bring the situation in Abuja under control; normalcy will be restored in the next few days.”
Speaking earlier, the CEO of the NMDPRA, Mr Farouk Ahmed, said that the improvement in the supply of products from an average of 70 to 140 trucks was made possible by the Presidential approval of a ₦10 freight rate discount increase to petroleum products transporters as part of solutions to the fuel supply challenge.
He charged marketers to play by the rules as NMDPRA would not hesitate to sanction anyone found to be involved in underhand practices.
“We are doing everything to bring the situation to normal. We also want to state that there is no increase in the pump price of PMS, and any such sharp practice will be sanctioned accordingly by the Authority,” he said.
The tour of the filling stations was to monitor developments and ensure compliance.
In another development, Major stakeholders in the downstream sector of the oil and gas industry have suggested ways to mitigate the continuous rise in prices of diesel and cooking gas in Nigeria.
Among the stakeholders who spoke at a public hearing organised by the House of Representatives Joint Committees on Downstream and Gas Resources in Abuja were the Chief Executive Officer of the NMDPRA, Mr Farouk Ahmed and the Group Managing Director/CEO of NNPC Ltd, Malam Mele Kyari.
Leaders of Depot and Petroleum Marketers Association of Nigeria (DAPMAN), Independent Petroleum Marketers Association Of Nigeria (IPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Liquefied petroleum gas (LPG) Gas Marketers Association, amongst others, were also in attendance.
Fielding questions from members of the committee, Ahmed said that the current geopolitical crisis in Ukraine and Russia had affected the global crude oil supply resulting in the increase of petroleum products prices across the globe.
Ahmed said that the rise in the prices of petroleum products was a global phenomenon and not a local problem peculiar to Nigeria.
He added that the landing cost of petroleum product was also a major factor affecting the price of petroleum products.
“We need to see what can be done to alleviate the suffering of the people.
“If our refineries come back on stream and make foreign exchange available at the official rate of N400 per dollar, things will definitely improve.
“We also need to address the issue of vandalism,” he said.
On his part, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the only way to tackle the rising price of diesel and cooking gas was to increase the production of crude oil.
Kyari said that acts of vandalism of oil facilities have been responsible for the decline in production which in turn was responsible for the unavailability of foreign exchange.
He disclosed that 27,000 barrels were lost in a recent attack on one of the company’s facilities.
According to him, besides the Russia-Ukraine war which is affecting the supply of products across the world, most major oil companies are also shutting down in keeping with global emphasis on the shift from fossil fuels over environmental concerns.
“No one can guarantee stability of petroleum products supply; the world has never seen this kind of uncertainty. Today, countries are stockpiling products.
“Shortly before COVID-19, the world was already facing shortfall of 3 million barrel of supply of oil but with the ongoing intervention, by the end of July we will restore production to a level that is reasonable.”
The Chairman, House Committee on Downstream, Rep. Abdullahi Gaya, said that there was need to find solution to the high cost of diesel and cooking gas in order to alleviate the hardship on the generality of Nigerians.
Some of the lawmakers said that although Kyari and Ahmed candidly presented the worrisome situation the industry was faced with, they, nevertheless unanimously expressed confidence in their ability to bring the situation under control.
The stakeholders present at the hearing include the Independent marketers, suggested a short, medium and long term solutions to combat the challenges.
They also pledged to work with the NNPC and the regulatory agency to redress the situation.
NMDPRA NNPC Proffer solution to Rise AGO LPG Prices.mp4
