Petrol scarcity: No plans to hike fuel price —-FG

 

.As NNPC assures Nigerians of sufficient PMS stock with 1.7bn litres

. ‘Full deregulation of downstream sector ‘ll boost domestic refining’

UGO AMADI

As fuel scarcity persist in major cities of the country, the Nigerian National Petroleum Company (NNPC) Limited, has  reassured Nigerians that it has sufficient stock of petroleum products for distribution nationwide.

The corporation also said that it has over 1.7billion litres of PMS both on marine and on the land and do not have  any plan to increase the current price of PMS in the market.

The Group Managing Director, NNPC Ltd Malam Mele Kyari gave the assurance  while  addressing editors in a joint press briefing with , Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Nigeria  Union of Petroleum and Natural Gas Workers (NUPENG),  on Wednesday at the NNPC towers

The GMD lamented that the current fuel queue at the filling station is as a result of panic buying.

He called on Nigerians to desist from panic buying and buy what they need per day adding that  he is working assiduously with partners to ensure the product reaches every part of the country.

He said, “NNPC is further intensifying efforts to resolve distribution hitches being experienced in some parts of the country due to logistics issues, we have   engaged depot operators to load product round the clock to accelerate the restoration of normal distribution.”

“We have capacity now to load from all depots, we are currently running 24 hours loading from all our depots and we believe this will close the gap created by panic buying. We hope this will bring normalcy to the system soon

He also disclosed that the Corporation has engaged the services of government security agencies to ensure that all products loaded get to the right destination and affirmed that sanction will be meted to any operator selling above the stipulated pump prize.

“We sincerely apologize to our people and urge Nigerians to continue to be patient as we strive to return the situation to normalcy,” he stated

As the supplier of last resort, NNPC has continued to sustain adequate petroleum products supply and distribution to the nation despite challenges associated with the unending waves of pipeline vandalism, product theft and cross-border smuggling of PMS”

“In line with the existing laws of the land, NNPC Ltd is deeply committed to ensuring energy security for the country,” he said.

Meanwhile, the NNPC Ltd on Wednesday said full deregulation of the downstream sector would boost the country’s domestic refining capacity.

 

Mr Mustapha Yakubu, Group Executive Director, Refining, NNPC, said this during a panel session at the ongoing Nigeria International Energy Summit (NIES) in Abuja.

The News Agency of Nigeria (NAN) reports that the theme of the summit is: “Revitalising the Industry: Future Fuels and Energy Transition.”

Yakubu noted that the full deregulation of the downstream sector would encourage the establishment of more modular and condensates refineries in the country.

He said the NNPC had the mandate to protect Nigeria’s energy security and would continue to support efforts geared towards adding value to the nation’s crude oil production.

“We believe that there is need to improve our domestic refining capacity. That is why the NNPC is embarking on total rehabilitation of our four refineries and not just the usual Turn Around Maintenance.

“We are going to have locally refined products after the completion of the rehabilitation.

“We also have the Dangote Refinery coming up in Lagos while the Waltersmith Refinery in Imo is already in operation.

“Other modular and condensates refineries are coming up, and NNPC is supporting private investors in establishing them,” Yakubu said.

 

He appealed to Nigerians to show understanding with the NNPC due to the lingering scarcity of PMS across the country, adding that efforts were being made to resolve the issue.

 

Also, Mr Tunji Oyebanji, Managing Director, 11 Plc, said the postponement of the full deregulation of the downstream sector was a huge setback to the industry.

 

Oyebanji said liberalisation of the sector would enable investors across the value chain to have adequate returns on their investments, which was the goal of the Petroleum Industry Act.

 

Mr Huub Stokman, Chief Executive, OVH Energy Marketing Ltd., said increasing Nigeria’s domestic refining capacity would change the country’s economic landscape.

 

He noted that the current challenge with the scarcity of petrol was a clear indication that Nigeria needed a good emergency plan going forward.

 

Mr Emmanuel Omuojine, Executive Director, Rainoil Ltd., said removing subsidy on petrol would add significant value to Nigeria’s foreign exchange reserves on the macroeconomic level.

 

He said deregulation of the sector would increase competition, operational efficiency, mergers and acquisitions, increase incentives to invest and capital investment inflow.