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PENGASSAN gives reason for fuel scarcity in Nigeria

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NAIJA NEWS: PENGASSAN gives reason for fuel scarcity in Nigeria [New Naija News] » Naijacrawl
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Mr.



Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has given a reason for the ongoing fuel scarcity across the country, particularly in Lagos and Abuja.

Speaking during an interview on Channels Television’s Sunrise Daily, Osifo highlighted the issue of "bridging funds" between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and truck drivers who deliver the Premium Motor Spirits (PMS).

Osifo said, “The NMDPRA is the one administering a bridging fund." At a particular time, they agreed with truck drivers that the bridging fund was going to be about N10 per litre depending on the destination you are going to all over the country.
“As at when they agreed, the cost of diesel was about N250, so it was fashionable and the N10 was a bit okay, but today, the cost of diesel is over N700." It has tripled.
So, the expectation from the tanker drivers is that since the cost has gone up, instead of paying me N10.40kobo, as the case may be, you've got to multiply it by three.
“At the end of the day, that’s the first problem.”
“As of today, we’ve close to 2 billion litres of PMS, so the problem is not the stock,” Osifo said, explaining that while the stock is available, most of the truck drivers aren’t willing to move these products “because of the previous problems I just enumerated."

One of the issues again is that today, NNPC is the sole importer of PMS, so they import PMS into the country, and this PMS is brought to the high seas, so they rent some smaller vessels to bunker the PMS and take it to the various tank farms or depots.

So, if it is the NNPC depots and you’re loading from the NNPC depots, you’re going to pay about N148 as the ex-depot price.

But some of the PMS are also stored in private depots, and those private depots don’t sell to the retailers for 148; they add some premium to it. At the end of the day, they sell for between 152, 155, 160, and 162.

“So, if they sell at that amount, it’ll now be difficult for the retailer to go and sell at the same amount.”

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that the operating environment has become hostile to their businesses, blaming it on fuel scarcity in Lagos and other parts of the country.

The Lagos Zonal Chairman of IPMAN, Akin Akinrinade, noted that it’s no longer feasible to sell petrol in Nigeria at the recommended price of N165 a litre, adding that the landing cost of petrol was between N175 and N178 a litre.

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Ojo Sunday Victor, A Professional Graphics Designer, and a skilled Content Writer in Entertainment, News and Sport Update.!An Undergraduate in Ladoke Akintola University of Technology (LAUTECH, Ogbomoso). Read More

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Naija News

How frustration, delayed justice fuel jungle justice – Nigerians speak

Victorious

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NAIJA NEWS: How frustration, delayed justice fuel jungle justice – Nigerians speak [New Naija News] » Naijacrawl
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Nigerians are no doubt passing through what could be considered the toughest phase in the history of the country since the return to democracy in 1999.Apart from issues of insecurity, hunger is biting harder, job losses are on the increase, and frustration is at its highest ebb.No doubt, the citizens utilize every available opportunity to ventilate their anger. Sadly, though, the victims of such situations as jungle justice are the same commoners.Naijacrawl reports...
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Naija News

NNPC to Nigerians: Don’t panic, we have enough fuel in store

Victorious

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NAIJA NEWS: NNPC to Nigerians: Don’t panic, we have enough fuel in store [New Naija News] » Naijacrawl
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The Nigerian National Petroleum Company (NNPC) has cautioned Nigerians not to engage in panic buying of petrol, saying it has enough product for the country.The NNPC said this in a late Sunday statement by its Group General Manager, Group Public Affairs Division, Garba Deen Muhammad.The corporation said the sudden appearance of fuel queues in parts of Abuja was due to low loadouts at depots, which usually happen during long public holidays.It said it has over 2.5 bi...
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Naija News

Fuel Souvenir: LASG Seals Venue

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NAIJA NEWS: Fuel Souvenir: LASG Seals Venue [New Naija News] » Naijacrawl
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