MetroBusinessNews

Bad Fuel: IPMAN To Pass Cost Of Damage To NNPC 

Nigerians are at the crossroads again and this time, over ineptitude of leaders in government and its agencies.

The cost of goods, particularly, food items has gone beyond the reach of an average consumer, typified by the value of the nation’s currency battered beyond meaningful redemption, at least for now, with exchange rate at N750/$, for instance and even the elusive means of exchange, either as Naira or any of the foreign currencies.
To make matters worst, some Nigerians are counting their losses ocassioned by damage on their vehicle and generator engines from usage of imported adulterated fuel by some agents already identified by the same government, which has been graciously paying subsidy or under recovery on fuel imported into the country but for which nobody has been able to ascertain the real consumption figures.
Already the same country has Minister of Petroleum, junior minister and chief executive of NNPC, who superintend over the oil industry.
Some of the questions most Nigerians are asking are,: who is really in charge of issuing out importation papers, whether NNPC is no longer the sole importer of fuel, How efficient is NNPC with her agents responsible for importation, How many hours is it taking government to deal with the identified saboteurs….?
Already the official embarrassment has and still causing the hapless Nigerians whose car and generator engines are being knocked due to the bad fuel.
However, Mike Osatuyi, secretary, Independent Petroleum Marketers Association of Nigeria, (IPMAN) said the association will pass the cost to be collated to NNPC for possible restitution and offsetting.
Speaking on the Arise Television program, The Morning Show, on Thursday, Osatuyi decried government’s seeming lack of commitment to making the refineries to work which is the cause of major problems in the industry.
He acknowledged that some filling stations have become the targets for venting anger by the victims, adding that, at the end of the day, the association will pass on the bill to the company.
“We shall engage NNPC in a dialogue for them to pay for whatever compensation… And we may resort to due process if and when they decide to be funny”, he said.
In fact, one week after detection of the bad petrol in some states of the federation, evacuation is yet to start due mainly to huge volume of the product, logistics and costs to be borne in the process of moving it from depots and filling stations to designated points.

This has continued to narrow the possibility of resolving the scarcity on time, as fresh product to close supply gap runs into storage facilities’ hitches.

Investigations showed that the bad product was still at the various depots and filling stations, thus delaying distribution and storage of new product coming into the nation.

This means that the current petrol shortage may linger for awhile, as government and other stakeholders continue to work towards resolving all issues associated with the scarcity of fuel at filling stations.

Already, Olumide Adeosun, Chairman Major Oil Markers Association of Nigeria said some committees have been set up to ascertain the level and number of damaged vehicles and others.

According to Adeosun, “We were aware of this and have been working to ensure that the product received was separated, so it does not contaminate others, leading to destruction of consumers’ engines.

“Yet, some bad cases were recorded, including the Ardova PLC case, which led to 136 reported cases of vehicle engines damaged.

“But, we have identified the quantum of the problems, traced the sources and know the vessels that discharged the products as well as the depots and filling stations involved.

“At the moment, we are working to restore normal operations. We are making sure that the clean product, which has been received into our system is pushed out to consumers immediately.”

It was reliably learned that the commercial committee has been mandated to visit the various depots and filling stations where the bad product is stored to quantify and ensure evacuation at approved costs, which would eventually be settled by government.

NMDPRA Reacts

Reacting to the importation of about 100 million litres of bad petrol, the NMDPRA noted that evacuation of the product had commenced, adding that it also has 20 days sufficiency volume to meet demand.

NMDPRA thus advised Nigerians against panic buying, as about 300 million litres of petrol is being discharged at the Apapa jetty.

Speaking during stakeholders’ meeting, Chief Executive Officer, NMDPRA, Farouk Ahmed, who is being queried for the embarrassment said: “Today (yesterday), I am happy to say that loading is ongoing at various depots in the country, because we have been able to identify, isolate and quarantine the limited PMS that was affected by the methanol volume discovered.

“At the moment, six vessels ordered by the NNPC arrived the country in the last few days, carrying a total volume of 300 million litres. This is meant to close the gap created by those affected volumes of petrol we have withdrawn from the system.

“Today, we have about 20 days sufficiency of petrol in the country. Our ideal is to have 30 days volume level; because of concerns, we have to withdraw those vessels, which created this gap of 90 million litres to 20 days sufficiency.

“But with aggressive importation by the NNPC, this gap will be mitigated in the next few days, according to data obtained from the NNPC programme.

‘No need to panic’

“Loading is ongoing in most of the depots that have confirmed one specification material, so there is no need to panic. Between now and tomorrow, the off-specification product will be cleared.

“Currently, there is a 39,000 metric tonnes, MT, vessel that is about to discharge at the Apapa Single Point Mooring, ASPM, and this vessel will be providing products to major oil marketers, including OVH, TotalEnergies, 11 Plc, Conoil and Ardova, according to loading programme received from MOMAN.

“So, once these vessels complete discharging and start pushing the products to marketers, I believe Lagos will be cleared of shortage. We have gotten that assurance from the marketers.

“Also, most of these vessels that are on ground will also be providing volumes to most of the key members of DAPMAN. Off course, we have smaller vessels loading this off-specification product, which our technical team are trying to address.”
In spite of the assurances, most Nigerians see the development as a major scandal in the history of the country for which government must be resolute in ensuring that culprits are brought to book.

Already, NNPC Limited has explained how the adulterated Premium Motor Spirit (PMS), otherwise known as petrol was imported into the country from Belgium undetected as well as the oil companies that brought it in.

Kyari revealed that the adulterated fuel was imported into the country by 4 importers from Antwerp in Belgium with quality inspectors failing to detect the high level of Methanol it contained, first at the point of import in Belgium and later at the point of arrival in Nigeria.

The NNPC boss who did not give the date of import, however, disclosed that the NNPC found out about the situation late in January following a report received from their quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

He said that NNPC investigation revealed the presence of Methanol in 4 PMS cargoes imported by MRS, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando, and Duke Oil.
Nigerians would want to know more about the activities of these companies as far as importation of fuel is concerned, even as some allege that one of them is the training arm of NNPC.
It was further alleged that these companies export our crude, (FoB) and bring in equivalent of the refined products to the country.
“If these companies export crude free, why are they still being paid the subsidy or where does it go.
“And, how does a country determine the exact amount of subsidy paid when it does not know the amount of refined products its citizens consume on daily basis?” asks a stakeholder
“One thing is clear that the directive by president Mohammad Buhari to issue query and investigate the matter has brought about ‘open’ discordant tones in the name of confessions, which most Nigerians believe that the truth is yet to come out, ” say some other stakeholders.
“Again, it’s another test on the anticorruption stance of this government,” says an analyst.
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